“You can make a killing in the theatre, but not a living.”
-Robert Anderson
Wildcatters are known for taking risks, especially when it comes to investment opportunities. As with all investments, one should do an extensive risk-to-reward analysis before investing. This rings especially true when contemplating an investment in theater . It is said that only around 20% of Broadway shows will recoup their original investment. But when they hit big, they hit really big. As American playwright, Robert Anderson, insightfully stated: “You can make a killing in the theatre, but not a living.”
Most recently, the successes of the shows “Hamilton” and “Fun Home” have been turning heads. Hamilton made history in November of 2016 when it became the first Broadway show to gross more than $3 million for an eight-performance week. Investors had a unique “hint” with both of these shows: before hitting Broadway, they both had sold-out runs at an Off-Broadway theater in New York. Investors were able not only to see ticket sales but also a live performance before investing.
On the other end of the spectrum, however, are the shows that didn’t make it, such as “Spider-Man: Turn Off the Dark”. It was one of the most expensive Broadway shows ever produced at around $80 million. While it had impressive ticket sales at $1.5 million a week in its early run, that was not enough to cover the cost of the musical. After a little over 2 years, Spider-Man closed its doors.
Turning a profit on Broadway can be tricky, but once the checks start coming they don’t stop until the show stops. It really gets interesting when a show goes on tour. Investors continue to get a cut whenever the show is performed, from world tours all the way to a high school rendition.
Sure, investing in Broadway has proven time and time again to be a high risk, high reward investment opportunity. However, if theater is something you are intrigued with, and you can afford it, then why not take a chance? None of us have a crystal ball…you might just be fortunate enough to invest in the next Hamilton!!
“Life is not a dress rehearsal. The curtain is up and you are on, so get out there and give it your best shot.”
-Unknown