Revenue / 12.03.18
Three Broadway Shows to Close as Box Office Sinks, and Long-Term Issues Loom
Forbes (12/03/18) Seymour, Lee
Declining ticket sales have forced three costly Broadway shows to announce the end of their runs, with "Once On This Island" closing on Jan. 6. An investor said the production's weekly operating costs are about $450,000, and it will close without making a profit. Meanwhile, "Summer" is slated to conclude its run on Dec. 30 after months of plummeting box office, and its closure before the New Year's window suggests its cash reserves are depleted, in which case its investors will not recoup their losses. The third show, "Head Over Heels," will also close on Jan. 6; its investors will not get their money back, nor will they participate in any licensing income because the show took out many loans to remain solvent, with their payback now the top priority. Reasons for the slippage in box office gross include Broadway's reputation as elitist and too expensive for average theatergoers, with the median income of audience members topping $131,000. Moreover, ticket prices have climbed at more than twice the national inflation rate over the last two decades. Consumer spending on Broadway also has taken a hit, with last year's tax cuts arguably starting to have a negative long-term impact on lower-income consumers.
Read the full article on Forbes.
Tags: Theater, News