By Tim Donahue
Level cash is a groundbreaking consultant to knowing specialist theater funds this present day by using the instruments and metaphors of the enterprise international at huge. This procedure ends up in a entire photo of the commercial realities of theater creation that's greatly diversified from the tests in general espoused in different places. Tim Donahue and Jim Patterson mix their studies within the monetary and artistic elements of theater creation to give in common prose their prepared insights into the micro- and macro-economic facets of the economic degree. Tangible info, charts, and graphs are counterbalanced with illuminating "intermissions" among chapters and interspersed sidebars all through to supply particular examples of key suggestions, jointly featuring an expansive evaluate of the modern theater company. degree cash is an unprecedented instrument for theater pros and fans drawn to garnering a greater knowing of the business's internal workings at the present and its demanding situations for the longer term.
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Extra resources for Stage Money: The Business of the Professional Theater
Two additional unions are not locals of IATSE: 18 Stage Money • Service Employees International Union, Local 32BJ for custodians, and so on; • Associated Musicians of Greater New York, American Federation of Musicians Local 802. In all, at least a dozen unions are involved in creating and maintaining a Broadway production. Off-Broadway Commercial Productions The off-Broadway commercial production is very much like the Broadway version although the dollar amounts are smaller. The profit potential is smaller as well.
Both failed to recoup their investments on Broadway but are expected to pay back investors from successful road tours. By Variety’s definition, both were flops. In sum, of 26 commercial mountings in the 2006–7 season, seven were hits and nineteen flops. Since at least the 1960s, the often-restated rule of thumb has been that only 20 to 25 percent of Broadway productions recoup their initial investments. Producer Margo Lion, quoted earlier, repeats this approximation. In the seasons 1999–2000 through 2006–7, nearly one-third of commercial productions recouped their investments (see fig.
The 80/20 rule is an admonishment to pay greatest attention not to your average business activities but to the small subset of activities that result in the biggest payoffs. Broadway illustrates the 80/20 rule when it comes to revenue: a small percentage of shows account for the lion’s share of revenues (see fig. 2). Some playwrights and producers have lamented the fact that the theater industry’s television extravaganza, the Tony Awards, showcases big musicals at the Risk and Return in the Commercial Theater 33 expense of all other Broadway shows.