The Broadway Box Used To Be Such A Nice Neighborhood Til Those Non-Profits Moved In

Rob Meiksins had a piece on Non-Profit Quarterly that discussed what the non-profit Second Stage Theater’s recent ownership of the Helen Hayes Theater on Broadway might portend in terms of economic and production models since Broadway theaters have long been commercial enterprises.

Second Stage Theater becomes the fourth non-profit currently producing in a Broadway stage. Meiksins wonders if this represents a growing trend that will break over 100 years of history for Broadway.

In addition to this being an interesting topic to ponder upon, I wanted to point the article out because Meiksins takes the time to explain the difference between Broadway, Off-Broadway, Off-Off-Broadway, Regional Theater and Community Theater.  If you aren’t really familiar with the theater world, this can help you understand a little bit about these terms. Though there are further gradations, especially in regional theater, that even theater people can be confused about.

Meiksins goes into a bit of the history of how each of these classifications emerged from a desire to offer alternatives to the preceding structure. In some cases it was a matter of geography—development of significant institutions outside of NYC. In other cases it was a matter of pushing creative boundaries.

Often the differences between each category are economic. I was interested to read that non-profit theaters with revenues in excess of $5 million gain more than 50% of funds through earned ticket revenue while those with budgets below $5 million depend more heavily on donations.

The challenge for non-profit Second Stage Theater operating in a space classified as a Broadway house with the attendant higher union pay rates and staffing is,

….nonprofit theater companies like Second Stage have to rely much more heavily on ticket sales to offset the higher expenses they are incurring in these large, formerly commercial venues. Although they are far more accessible price-wise to the average theater-goer than a Broadway show, they are still far more expensive than the average Off-Broadway house. This is also reflected in the TCG report which indicates that larger theaters had a lower than average subscriber renewal rate: subscribers were not returning for another year at the same rate as they do for less expensive houses.

There is an implication that the additional presence of a non-profit entity producing within the “Broadway Box” may represent a shift away from the commercial content on Broadway toward quality fare with a more focused agenda. Another article mentioned that Second Stage summer 2018 production of Straight White Men by Young Jean Lee at the Helen Hayes Theater will mark the first time a play by an Asian-American woman has appeared on Broadway.

It may be difficult to imagine interest in the big splashy productions like The Lion King, Wicked and the upcoming Harry Potter and the Cursed Child ever waning to the point that additional Broadway venues are sold to non-profit companies. However, it bears remembering that the biggest hit in recent Broadway history, Hamilton, transferred to Broadway after being wholly funded and developed at the very non-profit Public Theater.

There are a number of other differences between typical Broadway productions and non-profit theater that aren’t covered in the article that can serve to illustrate how significant a trend toward non-profits might be.

For example, Broadway productions are typically funded by investors who theoretically have an opportunity to recoup their money if the show does well versus non-profit productions which are supported by donors and ticket revenue (as I am sure most readers are probably aware.)

There is also a continuity that exists from year to year and production to production in non-profits whereas, other than the person with the keys to the door, commercial Broadway theaters start from a blank slate when a new show moves in to the space.

Somewhat unspoken in all this, except in the title of the Non-Profit Quarterly article,  (Nonprofits On and Off Broadway: The Search for Enterprise Models), and some oblique references, is that there is a potential for a new hybrid business model to emerge from all this activity.

It wasn’t so long ago that the hot topic on arts blogs was basically “What’s so great about non-profit status?” There was quite a bit of discussion about alternative organizational structures and business models. While the conversation has largely settled down, the need for options hasn’t disappeared.

About Joe Patti

I have been writing Butts in the Seats (BitS) on topics of arts and cultural administration since 2004 (yikes!). Given the ever evolving concerns facing the sector, I have yet to exhaust the available subject matter. In addition to BitS, I am a founding contributor to the ArtsHacker (artshacker.com) website where I focus on topics related to boards, law, governance, policy and practice.

I am also an evangelist for the effort to Build Public Will For Arts and Culture being helmed by Arts Midwest and the Metropolitan Group. (http://www.creatingconnection.org/about/)

My most recent role was as Executive Director of the Grand Opera House in Macon, GA.

Among the things I am most proud are having produced an opera in the Hawaiian language and a dance drama about Hawaii's snow goddess Poli'ahu while working as a Theater Manager in Hawaii. Though there are many more highlights than there is space here to list.

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