Theatre Design & Technology - Oct 1966 - 22

Also, I have a rental figure for two of the musical
houses, which is not true of the dramatic house. The
dramatic house owns its own property. It is very diffi·
cult, in going through the statements that were made
available, to find out exactly what the equivalent of the
rental figure would be.
In the case of the musical productions, two of the houses
rented and for one house rental absorbed 1 9 % of the
costs. For the other house, which is the largest tent we
examined, rent accounted for 10% of costs.
If you want a comparison with Broadway, be it musical
or non·musical, the typical Broadway show finds that of
all its weekly costs, rent accounts for approximately 30%.
As far as musicals are concerned, the cast is still ex·
tremely important. Again, there is a great split between
principals and the ensemble. The cost for one of the
houses was 20.8% of weekly costs, 14.2% to princi·
pals and 6.6% to the ensemble. The other 1,600-seating-capacity house had a cost of only 4.3% for the en·
semble, but 10,5 % was absorbed by the principals.

of $1 7,000 for his services last summer. So it is after
paying him $17,000 that the theatre was able to earn
a profit of $4,000.
What emerges, of course, are some significant facts
about running a theatre of this nature: If you wish to reduce costs in an effort to increase profit, there is little
that can be done, because if you really address yourselves to the hard-core costs (those that come at the top
of the list - they would include such items as the cast,
which we have indicated), there is little you can do,
because you are working with either individual contracts
or minimum contracts. There is little room for pushing
salaries down, even in the case of individual contracts
because of the competitive nature of hiring.
Next on the list are allocable costs, such as payroll taxes,
travel pay - which is also part of the union agreement,
and telephone service. As many of you may know, one
has little control over the huge telephone bills that tend
to pile up in summer theatre.

Royalties also depend on contractual agreements. There is
I cannot give you an equivalent in terms of the large little or no bargaining, because royalties are set by the
house, because there were both a resident company and individual publishers or the authors themselves.
packaged productions. The package was one of their most
The few areas you have to play with are advertising and,
important single costs - something in excess of 26%
possibly, unduly high management fees; but that is only
being spent on these packages. No breakdown was given
true in the case of one theatre in our sample. Having
in terms of cast, so a meaningful comparison cannot be
worked in a musical house, I know how low the salaries
made.
are for the rest of the staff. Certainly the staff does not
Royalties are much more significant, which I think is to tend to be overpaid for regional theatre.
be expected,' for regional musical theatres than for nonWhat also emerges is that there is virtually no relationmusicals, absorbing between 11 % and 13% of costs for
ship, if there is any at all, between profit and gross inthe week.
come. The accountant who was good enough to supply
Here we must also mention pre-season costs, for they are me with these seasonal figures substantiates this and
a little more significant for musicals than non-musicals, says he has never found any relationship between the
amounting to something in the neighborhood of 10% gross of a summer theatre and its ability to make money.
of total costs. (The range was between 8.2% and 11 %). When asked what is considered to be a good profit or
This again is understandable, because the pre-seasonal a normal profit for summer theatre, he said a good profit
work for a musical production involves fairly costlyaudi- is anything above zero. If you make a dollar, it is great;
tioning. Normally, the musical director plays an active and from that point on, everything is fine.
role, and one must supply at least a pianist for audiCosts must go up. The long·run picture is one of intions. The musical theatre also tends to audition more
creasing costs, not decreasing costs. Individual salaries
performers.
will go up. The cost of various services, including insurAdvertising was roughly the same as Broadway, in the ance and payroll taxes, payments into the Equity retireneighborhood of 7% to 8%. For Broadway musicals, ad- ment fund - all these must go up in the future. So if
vertising accounted for 8.1 % of costs.
anything the summer theatre must look forward to rising
costs, not declining costs.
There is one theatre to which I would like to address myself separately, and that is the largest musical house in If costs do increase and if the profit-making theatre is to
my study. The breakdown of costs is different, because remain that way, it has no way out but to raise prices;
of the use of packaged productions. The resident cast and apparently the behavior for regional theatre is very
did not really absorb very much in terms of weekly cost. much like Broadway. If you raise prices you make more
The package deals accounted for 26.80% of total costs, money. From one season to the next, if the producer
whereas the resident cast accounted for less than 12 % increases price by 5% (assuming the shows are equally
as attractive - and that is really the big variable!, his
of costs.
gross will go up by 5%. If people do stay away it is not
Also, just as a note because it is an interesting individual
because of an increase in prices.
situation, this particular theatre also made a profit, though
not very much. It averaged $824 a week for the entire The only thing that tends to keep prices in check is some
season. This was the lowest of the sample group. It element of competition among the theatres themselves.
had the biggest cast, the largest capacity, spent the most In some cases theatres opening up next door to one
money, and earned the least amount on a weekly basis. another have led to over-development in some resort
Further examination reveals that all the money earned areas. But, without the check of competition there is
was made on special shows. The actual 12 -week season every incentive to fix price and gradually raise it.
itself only broke even.
The other houses did
averaged in excess
profit is above and
one case were very
the houses is really

22

rather well. The two musical houses
of $4,000 a week profit, and that
beyond management fees which in
substantial. The manager of one of
a jOint owner and he received a fee

One finds the same tendency on Broadway. From one
season to the next, prices tend to move upward. This is
also the result of Broadway's fine technique of not only
raising actual prices, but also making the mezzanine
bigger and bigger until the balcony finally consists of one
back row.

I USITT I

THEATRE DESIGN AND TECHNOLOGY



Table of Contents for the Digital Edition of Theatre Design & Technology - Oct 1966

Contents
Theatre Design & Technology - Oct 1966 - 1
Theatre Design & Technology - Oct 1966 - 2
Theatre Design & Technology - Oct 1966 - 3
Theatre Design & Technology - Oct 1966 - Contents
Theatre Design & Technology - Oct 1966 - 5
Theatre Design & Technology - Oct 1966 - 6
Theatre Design & Technology - Oct 1966 - 7
Theatre Design & Technology - Oct 1966 - 8
Theatre Design & Technology - Oct 1966 - 9
Theatre Design & Technology - Oct 1966 - 10
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