Author: Baumol, William J.

Publication Year: 1971

Media Type: Report

Summary:

This report will begin with a systematic stocktaking of the economics of theatrical activity in New York City. It will report, on the basis of a painstaking survey of the facts, the situation regarding volume of activity, audience size and composition, pricing, costs, and a variety of other pertinent elements. From there it will turn to policy issues, offering a number of recommendations to the various levels of government affecting the theatre, to those who provide financial support for dramatic activity, to the unions and to those who run the theatrical activities. Both short-run and long-run issues will be discussed, and a program will be offered which, it is believed, can make possible a theatre that is financially viable, now and in the future.

Abstract:

This report will begin with a systematic stocktaking of the economics of theatrical activity in New York City. It will report, on the basis of a painstaking survey of the facts, the situation regarding volume of activity, audience size and composition, pricing, costs, and a variety of other pertinent elements. From there it will turn to policy issues, offering a number of recommendations to the various levels of government affecting the theatre, to those who provide financial support for dramatic activity, to the unions and to those who run the theatrical activities. Both short-run and long-run issues will be discussed, and a program will be offered which, it is believed, can make possible a theatre that is financially viable, now and in the future.

It should be emphasized that the scope of the study extends beyond the Broadway theatre which receives the bulk of public notice, and accounts for a preponderant proportion of the theatre's financial flows. The study encompasses not only the off-Broadway and off-off Broadway activity that extends virtually the length of Manhattan, but includes also the activity which in the last few years has burst forth in the City's other boroughs, much of which makes up in enthusiasm for what it lacks in terms of funds and public notice.

This report has offered a broad range of recommendations to the city and the state, to the foundations and to the theatre itself. Many of its proposals are designed to facilitate the workings of the theatre. By modifying archaic practices in the industry, by eliminating obsolete restrictive legislation that circumscribes the theatre to no good purpose, by making clearer to the general public the full magnitude of the dramatic resources it has available, the economic conditions of the theatre can easily be improved materially, even in the short run. By systematization of the work of attracting younger audiences and placing the financing of the theatre on a firmer foundation, its long run viability can be assured. In the postwar period New York City has become a major focus of creativity in the theatre for the entire globe. The economic means needed to permit it to retain that role merit careful consideration.

CONTENTS
Introduction.

The current economic status of the theatre:

  1. The state of activity.
  2. The audience.
  3. The structure of theatrical activity in Manhattan: Off-Off Broadway.
  4. Neighborhood activity in and outside Manhattan.
  5. Public and private foundation support.
  6. Availability of seats.
  7. Ticket prices.
  8. Cost trends.
  9. Featherbedding.
10. Funding.

Institutional arrangements and efforts to improve them:

11. Ticket marketing arrangements.
12. Regulations affecting the theatre:
      a. Federal regulations. 
      b. Regulations by the State and City.
      c. Prohibitions of commissions to brokers by theatre owners.
      d. Prohibition of direct sales to out-of-town ticket brokers.
      e. Tie-in sales and sales of other items by ticket brokers.
      f.  Ceilings on payments to brokers and to the theatre.
13. Audience development.
14. Various audience development schemes:
      a. The theatre development schemes.
      b. Student rush.
      c. The Lincoln Center Repertory theatre.
15. More ambitious programs:
      a. Lincoln Center.
      b. Lincoln Center Repertory Theatre.
      c. The American Place Theatre.
      d. Actors Equity.
16. The availability of theatres.

Conclusions:

17. What the theatre can do for itself.
18. A theater information alliance.
19. Audience development.
20. Experiments in time of performance and pricing.
21. Distribution of tickets:
      a. Purchase convenience.
      b. Seat availability information.
      c. Play availability information.
      d. Avoidance of pools of unsold tickets.
      e. Minimization of risk to the theatre.
      f.  Incentives to marketing agents. 
      g. Adequate income for marketing agents.
      h. Minimization of marketing costs.
      i.  Ease and completeness of record keeping.
22. Suggestions to funding agencies.
23. Funding of summer programs.
24. Suggestions to government agencies: Regulation.
25. Suggestions to government: Financial.
26. Concluding comment.

Arts & Intersections:

Categories: Creative Economies