Podcast Summary
Financial challenges in live theater: Despite small casts and crews, live theater is an inefficient, handmade business where costs have increased and traditional audiences have shifted during the pandemic, but there's potential for new core audiences to emerge and bring financial success to some shows
The unexpected success of the off-beat Broadway play "Stereophonic" has brought attention to the financial challenges faced by the arts industry, particularly live theater. The play, which tells the story of a coed rock band in the 1970s, won five Tony Awards despite having a relatively small cast and crew. The playwright, David Adjmi, described the experience of sudden success as disorienting and overwhelming. The theater industry is unique in that it is a handmade, inefficient business where a small show can require a large team to put on each night. The pandemic has only worsened the financial situation, with costs increasing and traditional audiences shifting. However, there are signs of a new core audience emerging, with shows like "Stereophonic," "Gutenberg," and "O'Meary" finding success. It remains to be seen how this success will impact the industry as a whole and whether it will lead to more funding for the arts.
Broadway audience demographic shift: Younger generations, particularly those in their late thirties to early fifties, are increasingly becoming the core Broadway audience due to the popularity of actors from TV, the timeless appeal of music and drama, and a renewed desire for communal experiences post-pandemic.
The demographic of Broadway audience has shifted significantly, with younger generations, particularly those in their late thirties to early fifties, becoming a larger part of the core audience. This shift is due in part to the popularity of actors like Sarah Paulson and Jeremy Strong, who have drawn large followings from binge-watching their television shows. The nature of event theater and the timeless appeal of music and drama are also contributing factors to this trend. Additionally, the pandemic has led to a renewed desire for communal experiences, making live theater an attractive option for many. The actors in these productions, such as Tom Pasinka and Sarah Pigeon, have reported a unique experience transitioning from off-Broadway to Broadway, where the intimacy and chemistry are more pronounced. Despite the challenges and demands of live theater, it continues to offer a level of discipline, technique, and lineage that cannot be replicated in other forms of entertainment.
Theater production challenges: Producers face high financial hurdles in New York's theater industry, but prioritizing kindness and collaboration can help navigate the chaotic world behind the scenes while pushing creative boundaries.
The world of theater, while magical and beautiful on stage, can be chaotic and challenging behind the scenes. Producers like Sonya Friedman need to be both artistically and financially savvy to navigate the industry. The economic model for theater in New York is significantly more expensive than in London, making it harder to take creative risks and produce shows that can financially succeed. However, it's important for producers to prioritize kindness and collaboration amidst the challenges. As Friedman emphasized, the illusion of theater hides the complexities and fractious relationships offstage. Despite the financial hurdles, producers must continue to push boundaries and create innovative productions that can thrive in the New York market.
Broadway ticket pricing: Producers price tickets affordably initially to fill houses and build word-of-mouth, then raise them as demand grows, using comp tickets for industry pros and press. Successful shows can lead to significant returns, but financial risks are high.
Pricing and ticket strategies for a Broadway production, especially for an unknown title, require careful consideration and flexibility. Producers aim to fill houses and build word-of-mouth by pricing tickets affordably at first and then raising them as demand grows. They also rely on comp tickets for industry professionals and press to generate buzz. The ticket pricing and strategies are evaluated regularly, and extensions and national tours are considered when the show is successful. The odds of recouping initial investments are low, making it more of a form of commercial philanthropy or a gamble. The success of a Broadway production can lead to significant returns, but the financial risks are high. The revenue from a successful show is typically divided among various parties, including the cast, crew, and investors. The play "Stereophonic" is an example of a Broadway production that has seen great success and continues to extend its run, with potential for a London production and a national tour.
Broadway profit sharing: Ensemble cast members in hit Broadway shows can negotiate profit sharing to ensure fair compensation and financial security, shifting from the traditional Broadway model.
The journey to career success in the entertainment industry, especially on Broadway, can be long and financially challenging for performers, even those in hit shows. Despite the glamour and excitement, there are real-life expenses and financial realities that need to be addressed. The cast of the hit Broadway show "Stereophonic" negotiated profit sharing as part of their contracts, allowing them to share in the financial upside of the show. This is a shift from the traditional Broadway model that only offers profit sharing to big stars. The ensemble cast members, who are not household names, recognized the importance of everyone being financially invested in the show for a better overall experience. It's a reminder that behind the scenes, there are real people working hard to create great art, and they deserve fair compensation and financial security.
Theater industry innovations: Despite challenges, theater industry bounces back with innovations and new partnerships, such as British invasion shows and digital marketing with streaming platforms, resulting in measurable ROI and continued audience engagement.
The theater industry is facing numerous challenges, including high production costs, changing audiences, and increased competition from various media platforms. However, history has shown that even during difficult times, such as the late 1970s and the financial crash of 2008, the industry has bounced back with innovations and new partnerships. For instance, the British invasion of the 1980s brought massive shows, and the current digital age has led to new ways of marketing and advertising through social media and streaming platforms like Netflix. Although the costs of digital marketing and advertising campaigns are higher than traditional methods, the ROI is more measurable due to advanced tracking capabilities. The industry's future may involve more partnerships with studios and streaming services, as seen with Netflix's involvement in producing and investing in Broadway shows. Despite the challenges, the passion and excitement of live theater continue to draw audiences and inspire creators.
Theater's Importance: Theater, essential for mental health and communication, is a necessary part of policy and education, emphasized by Sonia Friedman. David Adjmi defends the value of intense, thought-provoking theater, underrepresented in today's commercial market.
Theater, despite the challenges it faced during the pandemic, is essential for our mental health, ability to communicate, and empathy. Theater producer Sonia Friedman shared her experiences of managing multiple shows around the world and the impact of the pandemic on the industry. She emphasized the importance of theater in our lives, not just as a luxury, but as a necessary part of policy and education. Playwright David Adjmi, on the other hand, spoke about the importance of experimentation and non-rational intuition in his writing process. He defended the value of intense, thought-provoking theater, which he feels is underrepresented in today's commercial market. Overall, the conversation highlighted the importance of theater as a unique and powerful medium for expression and connection.
Diverse Team Behind Freakonomics Radio: A diverse team of individuals, including musicians and composers, collaborate to create Freakonomics Radio's theme song and additional music.
Key takeaway from this episode of Freakonomics Radio is the diverse team behind the scenes, including Augusta Chapman, Dalvin Abowaji, Eleanor Osborne, Elsa Hernandez, Gabriel Roth, Greg Rippen, Jasmine Klinger, Jeremy Johnston, Julie Kanfer, Lyric Bowditch, Morgan Levy, Neil Carruth, Rebecca Lee Douglas, Sarah Lilly, Theo Jacobs, and Zach Lipinski. They are responsible for creating the podcast's theme song, "Mr. Fortune by The Hitchhikers," composed by Luis Guerra, and additional music by Will Butler, Justin Craig, and the cast of Stereophonic. A reminder that envy, or the green monster, can sometimes drive us forward, but it's important to clarify that metaphor when speaking! The Freakonomics Radio Network continues to explore the hidden side of everything, and we're grateful for your listening.