Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Wednesday, February 25, 2015

Why "Hamilton's" Producers Made the Right Decision

Lin-Manuel Miranda's sung through Hamilton is moving uptown this summer, ending weeks of speculations about when and how it would make its Broadway bow.

After a couple of brief but intense weeks of speculation, we now know the timeline for the Broadway transfer of Lin-Manuel Miranda's critically acclaimed Hamilton. The producers of the hip-hop musical just announced a July 13th start date for the production's Main Stem bow, which means everyone can stop speculating and start lining up for tickets. The question was never if Hamilton would transfer, which was a given based on the thrice-extended tuner's ticket sales and over the moon reviews, but rather when, with the most popular rumor stating that producers were desperately trying to get the show to Broadway in time for this year's Tony eligibility cutoff.

The truth is preferable to the rumors for a number of reasons, the biggest of which is timing. I always found the rumblings of a spring transfer dubious because of the extremely accelerated timeline it called for, which among other things would have involved cancelling the musical's lucrative extension at the Public Theatre. While technically possible (the show's contract with the Public allowed for the extension to be cancelled in favor of a Broadway run), such a move would have been horrible customer service to the show's ticketholders and created a rescheduling nightmare for the Public and the show.

Furthermore, the only Broadway theatre up for grabs is the Richard Rodgers, which will continue to house If/Then until that show's March 22nd closing date. By the time stagehands managed to load out If/Then's complex set and load in Hamilton's, not to mention the week of technical rehearsals the cast would need to get accommodated to their new playing space, the show would have an extremely limited preview period if it wanted to open before the April 23rd eligibility cutoff. Press performances would have started almost immediately, which would preclude any kind of rewrites, trimming, or tightening up of the show before it was thrust onto the most high profile stage in the country.

I also never understood how a spring transfer would benefit the Public Theatre, which helped develop Hamilton and will surely have a stake in the Broadway production. In addition to having to refund/reschedule thousands of tickets for the cancelled performances, premiering Hamilton on Broadway during the same season as Fun Home (another critically acclaimed musical which originally debuted at the Public) would pit two of the non-profit's highest profile titles against one another. Fun Home's intriguing but decidedly non-commercial premise means its only real hope at a healthy Broadway run is critical acclaim, and if Hamilton were added to this spring's slate the reportedly game-changing historical show would surely dominate most of the spring press and awards talk. By delaying Hamilton's Broadway bow, the Public could potentially have two Tony winning musicals to add to its resume instead of one, with all the added prestige and additional income that implies.

The show's current timeline makes much more sense, both commercially and artistically. By taking a 3 month break between the end of the Off-Broadway run and the beginning of Broadway previews, Miranda and his artistic team have time to rethink elements of the show they might not be entirely satisfied with. It also gives everyone, cast and crew, a chance to catch their breath before diving into a rigorous and open-ended Broadway production schedule. The hip-hop musical is also one of the few shows that might actually sustain a summer opening, a time when a majority of the focus is on the past season's Tony winners and the long-running tourist friendly shows. Given the massive level of buzz surrounding Hamilton, I imagine the initial months will sell well and possibly even sell out primarily on the strength of its Off-Broadway reviews and already high demand (The Public run is entirely sold out despite the three aforementioned extensions). By the time fall rolls around good reviews and word of mouth should have spread far enough to get the tourists interested, and it will get a virtually guaranteed boost in ticket sales once the 2016 awards season starts in earnest.

It looks like Hamilton is going to be the kind of blockbusting hit Broadway hasn't seen for several seasons, so I would recommend any interested parties book tickets as soon as they go onsale March 8th. It really is looking like we're going to have a Book of Mormon level critical and commercial hit on our hands, and I suspect anyone who waits until performances begin to look for tickets is going to have a hard time tracking one down. And when they do, they could well have to pay an arm and a leg for the privilege of seeing the show, which is something Hamilton is already slightly infamous for.

I know I'll be buying my tickets when they go onsale! And as soon as I get in to see it, you can certainly expect a full review!

Tuesday, December 16, 2014

Matilda Just Recouped, and That's a Bad Thing

The revolting children of Broadway's Matilda are officially in the black, which should make saving for their college funds significantly easier.

Matilda recently announced it had officially recouped the entirety of its $16 million capitalization, meaning the production is finally in the black. Any money made over its weekly operating costs is pure profit at this point, a milestone only an estimated 1 in 4 Broadway productions reach. And while this is an excellent celebration for Matilda and its producers (who will hopefully put some of those profits into developing more new work), the implications for the greater Broadway community are a little more troubling.

You see, by pretty much every metric Matilda is an unqualified success. Critics (myself among them) loved the show, giving it across the board raves for its inventive staging, winsome performances, and clever writing that challenges rather than talks down to its family audience. The production is often sold out, and even on a bad week rarely dips below 80% capacity. It routinely brings in over $1 million in weekly grosses, and shows no signs of slowing down almost 2 years into its run. Come January, the only other show still running show from the 2012-2013 Broadway season will be Kinky Boots, the musical the beat Matilda in that year's Best Musical race (and in hindsight, Matilda is probably the more deserving show).

So why on earth did it take Matilda so long to turn a profit? Kinky Boots turned a profit over a year ago, no doubt bolstered by a summer of sell-out business following its Best Musical win. That season's Best Musical Revival, Pippin, also recouped around the same time, although to be fair its capitalization was only half of Matilda's. To be doubly fair, Pippin's weekly grosses were often far below Matilda's during the same timeframe.

The obvious answer for the delay is that Matilda, like a growing number of Broadway shows and especially new musicals, cost a lot of money to mount. The cast is large, especially when taking into account that many of the children's roles are doubled or even tripled. Add in the fact that the production is contractually obligated to hire child wranglers to supervise all these minors and you have another major expense. The set is rather intricate, and there are several special effects that are surely driving up the weekly running costs. A higher weekly nut (the industry term for a show's running costs) means less of the gross can go towards paying back investors, something that surely slowed the show's progress towards turning a profit.

However, the nearly 2 year saga of Matilda's inching towards profitability begs the questions: what is wrong with Broadway budgeting when even a hit takes so long to recoup? Did the show really *need* all 16 million of those dollars, or is a large chunk of that tied up in needless waste from redundant union contracts and unnecessarily costly production elements? The show's high price tag is especially disheartening when you learn that the production team actually cut certain expenses present in the London production in an effort to keep costs down, and the Broadway mounting still costs almost 4 times its West End counterpart (where theatre is much more heavily subsidized by the government).

This is ludicrous, and it is a problem that no one in the Broadway industry seems particularly keen on tackling. It is the main reason ticket prices continue to climb, making theatre an ever more elitist art form instead of the populist entertainment it used to be. The average person cannot afford a $135 ticket more than once or twice a year, if that. But when your show costs $16 million and you want to pay back your investors' money, you can understand why producers feel the need to charge that much. Which in turn begins a cycle where people want to see something that looks like it costs that much, which again raises prices, which continues ad naseum until you end up with an ungainly monstrosity so focused on the spectacle it becomes a creative nightmare (Spider-Man being the most high profile recent example).

This is not an easy problem to fix, and solving it will take a seismic change in the way the industry works. First and foremost, everyone should probably take a pay cut, something that will of course be horribly unpopular but is ultimately an investment in the future of the industry. No one will have any jobs if costs end up pricing theatre out of reach for all but the wealthy elite. The pay cut doesn't necessarily have to come from the salary if the unions would make some concessions in other areas; for instance, maybe the stagehand and musician unions take a long, hard look at how many people they require Broadway shows to hire. And as very few actors manage to qualify for Equity's healthcare but the universal payment amount to a major production expense, maybe producers could stop being required to pay into the system for actors who don't opt in.

Secondly, all designers and directors should really adopt a less is more approach. There are some eye-popping special effects in Matilda that are plot driven and need to be included, but there are also things like lasers which may look cool but don't particularly add much to the show other than running costs. In my experience, some of the most effective theatrical moments are the simplest, the ones that embrace stagecraft rather than trying to produce a literal representation of whatever they're meant to portray (something film is significantly better at, anyway). The Lion King is one of the most spectacle driven shows on Broadway, and the moment that most took my breath away was one of the simplest: a bright blue piece of fabric being pulled through an upstage hole, simply and elegantly conveying the drought that plagues the African savannah.

Now of course artists need to make money, and I'm not arguing that we suddenly start paying the most talented people in our industry nothing. And I'm certainly not against spectacle or lavish production elements when warranted, as they contribute to some of the magic of theatre. But being more selective about how productions spend their money is probably a good idea. There's no reason for a hit show like Matilda to take 2 years to turn a profit, especially in an age when the average length of a Broadway run is growing shorter. Many shows - even well received ones - can't count on running 2 years, so any budget that requires that much time to turn a profit isn't the most fiscally responsible. Addressing these issues will take a major shift in the way producers and unions think about Broadway budgets, and will take some self sacrifice on everyone's part in order to ensure the future health of the medium. But if no action is taken, Broadway will soon go the way of opera, catering to a small, elite minority rather than the masses. And that would be a true tragedy of Shakespearean proportions.

Wednesday, October 8, 2014

Union vs. Non-Union Tours and Equity's Image Problem


Well, Actors' Equity just significantly raised the game in its crusade to combat non-equity tours. The union has begun the "Ask If It's Equity" campaign via social media, encouraging all potential audience members to inquire if a touring production is Equity before purchasing a ticket. And unsurprisingly, there are strong feelings about whether this is a good idea on both sides.

First, some background for those who aren't well-versed in the ins and outs of performer contracts. Actors' Equity Association is the performers' union that represents all Broadway actors, along with the actors in many Off-Broadway, regional, and touring productions. After joining the union by jumping through a convoluted and/or highly unlikely series of hoops (most performers become an Equity Membership Candidate and accrue a certain number of points before being allowed to buy into the union, although if an Equity theatre really wants someone they can pay the actor's dues for them), Equity actors gain access to a litany of special privileges including better pay, healthcare, strict limits on the amount of hours they can be worked, and perhaps most appealing of all, priority access to auditions. In return, members pay union dues every year and are forbidden from taking any non-union work; if they get caught performing without a union contract, they can be barred from the union for life, which effectively kills any Broadway or other high profile aspirations a performer might have.

Now, the way touring productions work is that touring houses will guarantee a certain level of ticket sales before booking a show at their particular venue. This allows tour producers to make informed decisions about how much money they should budget for actor salaries, costumes, sets, etc. If the theatres cannot guarantee a large amount of ticket sales, then producers are left with the option of either cancelling the show or casting it with non-union talent, which costs significantly less (there are no minimum salaries for non-union actors, and the producers don't have to pay into Equity's expensive healthcare system on behalf of each performer). Since non-union tours are cheaper to mount, more and more productions are going the non-Equity route to cut costs. As most audience members wouldn't be able to spot the difference between union and non-union talent - there is sometimes little to no difference in skill level and professionalism - the tour producers still advertise these shows as if they are direct from Broadway, even if it involves smaller sets, fewer actors, and less polish than you typically (but not always) find in Equity productions.

Unfortunately, there has been tension between union and non-union actors for almost as long as there has been a union. Equity's job is to protect its members and ensure them as many well-paying jobs as possible, which means Equity auditions are notoriously hard to get seen at if you aren't already in the union. However, the only way to actually join the union is to be cast in an Equity production, which is a huge catch-22 that is understandably frustrating to the many hardworking and talented non-union performers who wake up at the crack of dawn and wait around all day in the hopes of being seen. Also, because Broadway and all of the most respected theatre companies are Equity, many union members have developed a nasty habit of acting like they're better than their non-union counterparts. Keep in mind, every performer was non-union at some point, and we've all seen professional, Equity productions that are just as painful (if not more so) as those at the local community theatre.

To me, the biggest problem with the "Ask If It's Equity" campaign is it plays directly into that tradition of smugness when it comes to the merits of non-union performers. The question heavily implies that if the touring company is non-Equity it is automatically of a lower quality. That is by no means an accurate assumption; last winter I saw the non-union tour of Memphis and found it compared quite favorably to the original Broadway incarnation. No, it was not better or necessarily equal, but the differences were negligible to all but the most experienced theatregoers; if I had not known the production was non-Equity, I would not have been able to tell with any certainty, and I see a lot of theatre. Furthermore, the production was not on Broadway and no one was paying Broadway prices to go see it, which does make a difference as far as perceived value.

That said, I also see Equity's side of the situation and understand the concerns that are causing them to act like dicks. The non-union tours are certainly advertised as if they are straight from Broadway, which is misleading and probably allows them to charge more money for tickets than if the distinction was made clearer. As I have many friends who can verify that this extra money is not going to the performers, that trend is at best concerning and at worst exploitation. And more importantly from Equity's end, these non-union tours could theoretically be union and thereby provide work for their membership, the vast majority of whom are unemployed during any given year. If Equity can use the campaign to prove that the union status of a tour does make a difference to ticket buyers, then they will be in a better position to demand union contracts for future tours.

So what can be done about this situation? There are no easy answers, although I think the majority of the burden lies with Equity and its large member base. The reason tours go non-union is because the touring houses cannot guarantee enough money to finance an Equity production, so a show goes out non-Equity (and still makes the creators and producers money, while also giving future union members a chance to hone their craft) or it doesn't go out at all. Touring shows either need to figure out a way to make more money, or they need to use the money they already make more effectively.

The first option (make more money) can pretty much be ruled out, as most regional audiences are already spending the maximum they're willing to pay for live theatre. Raise prices any further and attendance will likely decline. A decrease in ticket prices could theoretically increase the number of tickets sold and potentially lead to more actual income, but it's a gamble I don't see any sane producing team taking. Which means the tours need to be able to make their current income go further, which may involve lowering wages (something I would not personally advocate) or alternatively relaxing some of the union's stipulations. Broadway and Equity theatres are rife with tales of frivolous personnel due to union mandated quotas, and the strict time limits on rehearsals and performances can cause overtime pay to add up in a hurry. Furthermore, I know of at least a couple of former Equity theatres who are now non-union solely because they can't afford the Equity healthcare premiums (their actors still receive a salary equivalent to the Equity minimums). Since the vast majority of Equity actors can't actually take advantage of the union's healthcare - you must be employed more weeks out of the year than not to qualify - perhaps these premiums could be lowered to help cut costs.

Even more importantly, I think Equity needs to make itself more accessible to new members. I'm sure the current Equity membership is already bristling at this idea, as there already aren't enough jobs to go around and no one wants extra competition. However, as theatre is primarily a merit based profession, if Equity performers are as good as they believe they have nothing to worry about; they will still be cast instead of the less experienced newcomers. And if more of the talented non-union performers were to join Equity, it would get much harder for producers to piece together a non-union tour audiences would be willing to pay good money for and thus force producers to offer more union work.

There are no easy solutions to this problem, but the "Ask If It's Equity" campaign still leaves plenty to be desired. There will always be more people who dream of being an actor than the profession can actually support, so no matter what Equity does to increase job opportunities for its members a large percentage of them will be unemployed at any given time. As theatre becomes more and more expensive there will be fewer audience members and fewer jobs, which only highlights the need for the industry's leaders to prioritize cost saving measures that still provide for the safety and financial viability of acting as profession. And Equity really needs to reexamine the way it behaves towards non-members; it is often despicable and elitist, especially considering everyone in the union was non-union at some point. Perhaps if they honestly asked themselves how their 22-year-old self would feel about a given policy, they wouldn't be so hasty to put their feet in their mouths and angry large swaths of the theatrical community.