2006 was a Good Year for Broadway. What now?
Broadway had a great 2006 season with revenue up across the board thanks partly to a surge in ticket sales during the Christmas holiday season. The League of American Theatres and Producers has published a list of the top 10 shows (shows that played all 52 weeks of the year). The Top 10 Broadway Shows
One important piece of information missing from this table is the variable pricing policy recently introduced on Broadway, a policy that has seen a significant surge in revenue. You can typically expect to pay a face of around $110 a ticket, but now, in an attempt to cash in on the sold-out status of so many shows, premium tickets are selling for up to $480 face in some instances. One of those popular shows: The Producers should be credited with this 'premium ticket' idea that has since become the norm, and has injected an element of hope in a once 'flat' industry. Of course, as with any price increase, there is no shortage of criticism. Variety magazine reporter Gordon Cox in a recent NPR article stated that many people believe this tactic is essentially "price-gouging." But who can blame the show producers for trying to regain control of their tickets? Scalpers and brokers have done it for decades. And with the cost of producing a quality show seemingly forever on the rise, why shouldn't this extra 'fat' go to the shows? And this is what we have been saying all along here at Ticket Life. Think about the hard work, capital investment and money these people invest in each and every show. Think about the risk each of them takes. Then remember that most Broadway shows fail:
It is a well-known fact that Broadway shows are expensive (and labor-intensive ) to produce. As ticket sales and revenues climb, so do the costs associated with producing shows. So why should scalpers (or brokers) have free access to the 'fat'? It makes no sense and hurts the industry. It has long been our belief here at Ticket Life that a variable pricing model used in conjunction with anti-scalping technology like we have previously discussed on this site is the key and will make the difference between a failure and a success on Broadway. So we are selling more tickets... fantastic! Perhaps the lull after 9/11 is finally over. Perhaps the quality of the shows is climbing. Great! Better shows bring more people. Now that shows are selling out (Wicked has been sold out since its introduction four years ago), there is only one thing that can be done to boost revenue: increase the per ticket income to shows. Not scalpers. Jeremy Bayard Articles and opinions expressed herein do not necessarily represent the view of Ticket Life, its advertisers, vendor partners or any member thereof or of any particular editor. Advertising on Ticket Life does not imply endorsement. You are free to reprint, publish or quote any information herein free of charge and without prior authorization so long as you quote: ‘Ticket Life – Ticketing Industry Resource: ticketlife.com’. Ticket Life is not affiliated with any person or organization mentioned in this article. Ticket Life acknowledges that all trademarks, tradenames and product names used are the property of their respective owners. |
