Variety Reports on Broadway Shows That Have Yet to Recoup

According to a recent Variety article, the concept of a Broadway hit and a Broadway miss has become more complex as certain shows have found a way to continue running for extended periods of time without paying back investors.

MEMPHIS, which has played almost 700 performances, has been filmed for theatrical release, and is set to begin a national tour in the fall, has still not paid back investors. ROCK OF AGES has played over 800 times and has yet to pay back investors. THE 39 STEPS played from 2008 to 2010 without recouping.

While it seems like common sense that flops close and long running musicals make the money, that's just no longer the case.

"Clearly, there are certain shows that do well enough to establish themselves and find an audience but do not to do well enough to clean up and pay back investors as quickly as used to be the case," Stuart Oken, producer of THE ADDAMS FAMILY, told Variety.

Is a quick recoupment still a prime indicator of a successful Broadway show?

ADDAMS FAMILY producer says that it depends on a shows busines plan.  According to Oken, ADDAMS is trying to "establish ourselves in the lexicon for  years to come." THE ADDAMS FAMILY is about two-thirds of the way toward recoupment.

Oken also notes that Broadway is a seasonal business, with tourism as a huge factor. Also, as new shows come out, second-year shows like QUARTET and ADDAMS may have a tougher time.
 
According to the article, only 20%-30% of shows pay back their investors.

What has led to these changes? For one, the cost to put on a Broadway show has skyrocketed. Shows run longer now than ever before, and the touring market has changed. There is now a touring market for mid-range shows that would have simply closed years ago, making it possible for shows to earn money even after they have ended their Broadway run.

In this day and age, it makes more sense financially to continue running and building the brand.

For the original article, click here.