Trying to describe theatre to MBA students

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

2. 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 Managers General Manager Executive/Managing Director Producing Director Believe it or not, but all of these jobs are different.

3. Here’s where we talk about ourselves a little General Managers Day to day operations (budgets, contracts, HR, etc) Internal management Managing Directors Business leader of the organization (CEO!) Internal and external management Interaction with boards and donors Producing Directors Often work without an artistic leader Art and business decisions

4. All Broadway theatres are on Broadway…right? 40 theatres, each with 500-2,000 seats, located between 40th & 54th Streets and 6th & 9th Avenues

5. Broadway Economics

6. Fun with Charts and Graphs

7. How a Broadway Play is made Case: In the Heights

9. play to produce (In the Heights)

10. production to transfer Producer ensures that production is ready for Broadway 2000: In the Heights is written 2004: 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 Theatre 2007: ITH begins off-Broadway run at 37 Arts Theatre 2008: ITH opens on Broadway

12. Robyn Goodman/Walt Grossman (theatre producer)

13. Peter Fine (real estate developer)

14. Sonny Everett & Mike Skipper (insurance salesman)

15. Ruth Hendel(wife of investment banker)

17. Casting Agent to find actors, musicians

18. Director, Choreographer, Conductor

19. Designers (scenic, costume, sound, lights, video, props)

20. Press Agent to manage publicity

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

24. Nominated for 13 Tony awards

25. Universal Pictures acquires motion picture rights

26. Original cast begins to leave production

28. $500K weekly running costs

29. 94 weeks running

30. $70 M total grosses

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

33. Premium ticket prices ($300!)

34. Lack of investment capital (economic recession what?)

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

40. 76 members of the League of Resident Theatres (LORT)

41. At least a few hundred others

43. Not Commercial

45. Nonprofit

46. (Mostly) Producing

47. Mission-based

48. Broadway feeder team?

50. Case Study: Goodman Theatre Chicago, IL

51. 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

52. By the numbers The mix... The magic...

53. Mission Goodman 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.

54. The Art

55. The future of regional theatre Decline of Unions Dwindling (?) subscriber base Aging (?) audiences Consolidation & Expansion Boise ain’t Chicago! Commercial cooperation (enhancement)

57. Broadway tours (musicals and plays)

58. Dance

59. Family shows

60. Cabaret and one man shows

61. Music

62. Association of Performing Art Presenters

63. 1900+ members, 60% of members are presenters

64. Performing Art Centers

65. Community Theatres

66. Regional Theatres

68. Case Study: Orange County Performing Arts Center Orange County, CA

69. 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

70. The Numbers Orange 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)

71. The Season OCPAC 2009-2010 Season 113 different events spanning 365 performances days

72. Where the work comes from Scouted by the presenting organization at another venue, a conference, grapevine Submitted by creator of the piece Packaged by an outside party Created by an “in house” partner organization Created by the presenting organization

73. 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)

74. 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

75. Future Present(ers) Audience Demographics Aging Audience “My audiences have gone up significantly, my income has gone down.” Decline of Effectiveness of Traditional Media The 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

76. But wait, there’s more! small theatres community theatre culturally specific multi-disciplinary international

77. Questions?