[Mb-hair] Overture, Hit the Lights...

[Michael Butler]

Jim,
Thanks for sending this.
Michael

> 
> Here's why a Broadway show COULD run for two years, successfully--
> 
> And never make its money back.
> 
> Let's say you have a musical capitalized at eight milion dollars. That's
> about moderate for nowadays. (LITTLE WOMEN was brought in for about $5.8
> million, a bigger musial, could cost, say, abouit twelve million, or way
> upwards....)
> 
> The "capitalization" is just the amount it takes you to get to OPENING
> NIGHT.
> 
> (Although, the wise producer will have stored within that buget, a
> four-to-eight week contingency, to cover one-to-two months of poor, or
> slow, ticket sales...)
> 
> Let's now say, your WEEKLY RUNNIN COSTS are $400,000.
> 
> The four hundred grand is what it costs you to rent your theatre, pay
> your actors, your musicians, your tech crew, your union fees, your
> advertising, your royalties...
> 
> You have to MAKE $40,000 in ticket sales, before ever making a "weekly"
> profit--
> 
> Which goes to paying off the original eight million dollars.
> 
> 
> Let's say you're selling 80% of your tickets, in an average one thousand
> seat Broadway house.
> 
> 80% would be terrific nowadays.
> 
> At an average of $70.00 a ticket--which would be pretty good, bcause it
> doesn't take into account the discountd. special advance ticket sales
> you've generated with special mailings and other promotions--
> 
> You're making about $56,000 a performance.
> 
> Or,  $448,000, a week.
> 
> YOU ARE ONLY GETTING $48,000 a week towards your original invesment--or
> rather, you backers' invesment--of the show's actual budget, $8 million
> dollars....
> 
> After a year, you'd still be about five-and-a-half million in the hole.
> 
> With a relative hit show.
> 
> It could take you three-plus years just to BREAK EVEN.
> 
> To be sure, the lead producer, or producers, would also be generating
> money off tours, and ancillary sales....
> 
> But just a quick ilustration, in why Broadway has become an even tougher
> business...
> 
> Best, Jim Burns
> 
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