The Theater Business Model
There’s no business like show business.
Literally.
From a business perspective, theater has a problem.
It is a problem that no other business that I can think of shares, and it is very difficult to overcome. You see, in the theater industry there is no way to increase productivity – which means expenses (and therefore ticket prices) must always go up.
It’s Elementary
For example, say that I’m ten years old and decide to open a lemonade stand. I can go and buy lemons, sugar and water, and spend hours making my own lemonade. I make a gallon of lemonade and spend ten dollars on ingredients and do it myself, or I can buy already made lemonade. If the cost of the already made lemonade is less than my ingredient costs plus the value of my time, then I have increased productivity. I have the option to lower my prices and increase sales, or keep my price the same and increase profits.
Theater cannot do this.
A three character one set play will always be a three character one set play. It will always be one live performance at a time – except like now, when we are shut down because of a pandemic (which happens periodically; just ask Shakespeare).
But the pandemic cloud we are now in has a silver lining.
Let’s Zoom?
One of the benefits of the current pandemic for theater is the increased use of teleconferencing platforms, like Zoom, to do staged readings. Instead of doing readings live – an early developmental step where the script is read by actors to discover any problems in the script – readings now can be filmed and shown repeatedly to different audiences. Therefore, raising money to do the production is becoming less expensive and more efficient.
This will have a positive effect on productivity and, we hope, on the bottom line for all of us.
First, readings can be recorded and sent to people to view on their own schedule – unlike previously, where you had to be in the same room at the same time.
Second, people can view the reading in the comfort of their own home – unlike a live reading, when often bad weather or illness kept interested audience members home.
Thirdly, you can get people far from NYC interested in your play. All they have to do is to click the link. This is huge.
It may not seem like a big difference, but it should be welcomed. Also, I’m not saying that theater should disappear in favor of video; just pointing out the advantages of taping readings to reach a wider audience.
What do you think? Is there a place for YouTube, Netflix, etc. in live theater? What is it? Let’s get a conversation started in the comments below.