Broadway Grosses: Week Ending 12/11/16- Page 2

[HogansHero]

Posted: 12/13/16 at 8:59am

Sammytravels said: "Something Rotten isn't having the the great last few weeks as I hoped. Only In-Transit had a lower percentage of gross potential for a musical. "

It is at or above where it has been for most of the year, and it is not losing money. It has exceeded expectations all along, Gross potential is a meaningless stat untethered to context. It has about 2 1/2 times as many seats to sell at In Transit, so the % can be less and it can still be fine. As a side note, I have never seen a show alter inventory as often as this one has.

[RaisedOnMusicals]

Posted: 12/13/16 at 10:06am

HogansHero said: "Sammytravels said: "Something Rotten isn't having the the great last few weeks as I hoped. Only In-Transit had a lower percentage of gross potential for a musical. "

It is at or above where it has been for most of the year, and it is not losing money. It has exceeded expectations all along, Gross potential is a meaningless stat untethered to context. It has about 2 1/2 times as many seats to sell at In Transit, so the % can be less and it can still be fine. As a side note, I have never seen a show alter inventory as often as this one has."

 

Hogan is correct. Gross potential is a relevant only within the context of the individual show, as it's used to calculate a recoupment schedule.  For example, it might take a show 35 weeks to recoup at 100% of gross weekly potential each week, and 60 weeks to recoup at 80%.  Also, shows have a break even point referable to gross potential (this is very vague because it's really not how profit is calculated so it's an approximation at best) but a show might need to do X% of its gross potential to break even.  

But as Hogan says, you can't judge how one show is doing v. another show based on comparing percentage of gross potential. One show might need to do 50% of gross to break even and another show might need to do 65% of gross to break even.