What is Theater?Devon Smith, Meghan Pressman & Michael Barker

Managers in the Theatre (or what the heck is a theatre manager?)

Stage Manager

Box Office/House Manager

Technical/Production Manager

Marketing Manager/Director

Development Manager/Director

Business Manager

Theater ManagersGeneral Manager

Executive/Managing Director

Producing Director

Believe it or not, but

all of these jobs

are different.

Here’s where we talk about ourselves a little

General ManagersDay to day operations (budgets, contracts, HR, etc)

Internal management

Managing DirectorsBusiness leader of the organization (CEO!)

Internal and external management

Interaction with boards and donors

Producing DirectorsOften work without an artistic leader

Art and business decisions

All Broadway theatres are on Broadway…right?

40 theatres, each with 500-2,000 seats, located between 40th & 54th Streets and 6th & 9th Avenues

Broadway Economics

1984

-85

1986

-87

1988

-89

1990

-91

1992

-93

1994

-95

1996

-97

1998

-99

2000

-01

2002

-03

2004

-05

2006

-07

2008

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6789

10111213

Broadway Tickets Sold

Season

Tic

kets

(m

illions)

1984

-85

1986

-87

1988

-89

1990

-91

1992

-93

1994

-95

1996

-97

1998

-99

2000

-01

2002

-03

2004

-05

2006

-07

2008

-09

$0

$200

$400

$600

$800

$1,000

$1,200

Adjusted Gross

Millions

Other; 5%Nonprofit Theatres;

15%

Jujamcyn Theaters; 13%

Nederlander Organization; 23%

Shubert Organiza-tion; 45%

Broadway Theatre Owners

Other 6%

Comedy 14%

Drama 17%Musical 64%

Production Genre (Sept '09)

Theatre empty 10%

Theatre booked for rehearsals 45%Production run 0-1 Year 20%

Production run 1-5 Years 13%

Production run 5+ Years 13%

Length of Run

Fun with Charts and Graphs

How a Broadway Play is madeCase: In the Heights

An independent producer (Kevin McCollum) finds a: property to develop play to produce (In the Heights) production to transfer Producer ensures that production is ready for Broadway2000: In the Heights is written2004: Jill Furman sees a reading ITH in the

basement of the Drama Bookshop, brings it to the attention of Kevin McCollum & Jeffrey Sellers at The Producing Office

2005: ITH is workshopped at the Eugene O’Neill Theatre2007: ITH begins off-Broadway run at 37 Arts Theatre2008: ITH opens on Broadway

Producer finds investors ($2-$20M)•Sander Jacobs (businessman)•Robyn Goodman/Walt Grossman (theatre producer)•Peter Fine (real estate developer)•Sonny Everett & Mike Skipper (insurance salesman)•Ruth Hendel (wife of investment banker)•Harold Newman (oilman, grew up in Wa Heights) Producer hires: •General Manager to run the business •Casting Agent to find actors, musicians•Director, Choreographer, Conductor•Designers (scenic, costume, sound, lights, video, props)•Press Agent to manage publicity •Advertising Agent to manage marketing and advertising

Where the $$ Comes From

Producer contacts theatre owner (Nederlander) to arrange a long-term lease. Theatre owner takes a flat fee per week or a percentage of the gross. May opt to invest as a co-producer.

Theatre owner hires:

• Stage hands (to build set, hang lights & sound & video, run show backstage)

• House Manager and ushers

HAPPY OPENING!

• Run is open ended (94 weeks so far)

• Cast recording is produced and released (debuts #1, wins a Grammy)

• Nominated for 13 Tony awards• Universal Pictures acquires

motion picture rights• Original cast begins to leave

production• National tour announced for

12 US cities Quick Math• $10 M capitalization• $500K weekly running costs• 94 weeks running• $70 M total grosses• Operating Profit = $13M and

counting

Issues in the field•Unions (STRIKE!)

•Rising production costs (aka: how the film industry mentality is killing Broadway)

•Premium ticket prices ($300!)

•Lack of investment capital (economic recession what?)

•Non profits on Broadway (no fair!)

•Film stars on stage (or how to get street cred)

The future of Broadway1. Increased consolidation2. Fewer original properties3. Decline of unions

Random Facts• Longest running

show: The Phantom of the Opera premiered January 3, 1988. It has grossed $750 million and sold 13.5 M tickets.

• Highest returns: Producers of Wicked invested $14 million in 2003, the production has grossed $1.5 billion worldwide.

• Most $$ production: Spider-Man, Turn off the Dark $52 million

Those lovable unions!

Definition of Regional Theatre• Almost 500 members of Theatre Communications Group (TCG)• 76 members of the League of Resident Theatres (LORT)• At least a few hundred others• Generally not New York City (although there are exceptions)

Some Context

Little Theatre Movement – 1920s & 30sFord Foundation as Johnny Appleseed

Regional Theatre was about what it’s not• Not New York• Not Commercial• Not Presenting

Regional Theatre has come to mean• Based in the community• Nonprofit• (Mostly) Producing• Mission-based• Broadway feeder team?• A LOT OF THINGS

Regional Theatre economicsnonprofit theatre is big business! (well, business anyway)

Case Study: Goodman TheatreChicago, IL

The Skinny

Founded in 1925 as a division of the Art Institute of Chicago

Moved to the Loop location in 2000

Stable executive leadership in Roche Shulfer and Bob Falls

Artistic Collective comprised of 6 directors

Expenses of $19mm; Assets of $80mm

Albert theater (856 seats); Owen theater (374-468 seats)

Eleven productions per year

By the numbersThe mix... The magic...

2006 2007 2008$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Revenue Com-ponents

OtherContributionsTicket Sales

2006 2007 2008

$(3,000,000)

$(2,500,000)

$(2,000,000)

$(1,500,000)

$(1,000,000)

$(500,000)

$-

Net Loss

MissionGoodman Theatre, Chicago’s oldest and largest not-for-profit theater, has won international renown for the quality of productions, the depth and diversity of artistic leadership, and the excellence of its many community and educational programs. Under the guidance of Artistic Director Robert Falls and Executive Director Roche Schulfer, the Goodman is committed to producing both classic and contemporary works, giving full voice to a wide range of artists and visions. Central to that mission is the Goodman Artistic Collective, a diverse group of outstanding theater artists whose distinctive visions have given the Goodman an artistic identity of uncommon richness and variety. By dedicating itself to three guiding principles—quality, diversity, and community—Goodman Theatre seeks to be the premier cultural organization in Chicago, providing productions and programs that make an essential contribution to the quality of life in our city.

The ArtAlbert Theatre Owen Theatre

Turn of the Centurymusical

A Christmas Carolholiday

Desire Under the ElmsAmerican classic

Magnolianew play

Rock and RollWest End revival

Boleros for the Disenchanted

regional theatre revival

New Stage Seriesnew plays

Ruinedregional theatre revival

A Global Exploration: Eugene O'Neill in the 21st Century

festivalGhostwritten

new playThe Crowd You're in With

new play

The future of regional theatre

Decline of Unions

Dwindling (?) subscriber base

Aging (?) audiences

Consolidation & Expansion

Boise ain’t Chicago!

Commercial cooperation (enhancement)

Performing Arts Presenters

• Primarily present other people’s work such as:• Broadway tours (musicals and plays)• Dance• Family shows• Cabaret and one man shows• Music

• Association of Performing Art Presenters•  1900+ members, 60% of members are

presenters• Performing Art Centers• Community Theatres• Regional Theatres• Universities

http://www.ocpac.org/

Orange County Performing Arts Center

Orange County, CA

Case Study:

Organizational Structure

Orange County Performing Arts Center

1 concert hall (seats 1,704), includes pipe organ

1 theater (flexible seating from 300-600)

1 opera style house with 3 tiers (seats 2,994)

1 performance hall (seats 230-270)

1 outdoor plaza (seats 500-2000)

Also a café and an education center

Resident companies:Pacific Symphony, Philharmonic Society of Orange County, Pacific Chorale

The NumbersOrange County Performing Arts Center

Fixed assets worth 340 million

Investments of 183 million (incl 35mm endowment)(FY 2009 showed a overall 5.6mm loss in investments)

The Season

OCPAC 2009-2010 Season

113 different events spanning 365 performances days

Where the work comes from

1. Scouted by the presenting organization at another venue, a conference, grapevine

2. Submitted by creator of the piece

3. Packaged by an outside party

4. Created by an “in house” partner organization

5. Created by the presenting organization

Back to Bway: Touring Economics

2008-2009 Season

Approximately 100 shows in over 250 cities

$883 million

14+ million tickets

Cumulative economic impact spending:$3.25 billion on metropolitan areas across the United States during the 2004–2005 season(an average of 3x the gross ticket sales)

Who attends?

2008-2009 Season

Women represent 70% of audience and 73% of buyers

Average theatergoer attends 6 shows per year

Average theatergoer age was 50 years old

Vast majority of theatergoers were Caucasian

73% held a college degree and

41% held a graduate degree

43% of national theatergoers reported an annual household income of more than $112,300

Future Present(ers)

Audience DemographicsAging Audience

“My audiences have gone up significantly, my income has gone down.”

Decline of Effectiveness of Traditional MediaThe negative effects of “mission light” presenting houses

Substitutes

Increased Presenting Costs = Higher Prices and Higher Risk

Significant Decline Among Traditional Presentation Genres Like Classical Music

Increased Competition to Buy as Well as to Sell

But wait, there’s more!

small theatres

community theatre

culturally specific

multi-disciplinary

international

Questions?