But, except in the world of Bialystock and Blum (you remember them), sooner or later you have to produce something that people want to see.
Except that as long as the theatre company is receiving the private support -- or generating revenue from other sources -- to absorb those box office losses, they can keep producing whatever they want... regardless of the audience's desire or commercial/mass appeal. many would argue that the very point of non-profit theatre IS to produce theatre that may not be the most desirable but can or should be considered "important," largely based on the mission of the company and the vision of its founders. that is why there are smaller, niche companies that exist just for this purpose. now I am not suggesting that it's a GOOD model. not at all. you shouldn't be in operation if your box office makes up less than 35% of your total annual revenue. but it does happen and there are companies that find a way to sustain relying on 75% or more on private support: grants, sponsorships, individual contributions, etc. my point at the end of the day is that non-profit theatre and the financials associated with it are much more complex than for-profit commercial theatre.