How Producers Make Money

[One NYC StageHand]

Posted: 10/26/07 at 2:06am

This from a 10QSB statement made in connection with a production company. Available from Edgar Online.

http://www.marketwatch.com/news/story/10qsb-sibling-entertainment-group-inc/story.aspx?guid=%7B32AF4BCB-2AD0-41F7-BAB3-306CA2636BAC%7D


Our Management believes that we will acquire and develop productions for both Broadway and Off-Broadway based upon the experience of our principal officer's prior history that developed and produced several prior Broadway and Off-Broadway productions. Almost all productions presented for the stage are financed and capitalized in private and/or public offerings for with a "single purpose" limited partnership or limited liability corporation. As a producer, we would normally act as a general partner or managing member and seek to receive our share of income and monies from several key areas customary to the theatrical industry including:
· Producer fees -- budgeted fees paid in the development, management and production a play or musical, or other live-stage event. Such fees are commensurate with the size of the budget.
· Office fees -- weekly fees paid to contribute and support the costs of a producer's office and overheads.
· Royalties -- a percentage of the adjusted gross box office receipts paid weekly from the weekly operating budget.
· Net Profits -- a percentage of net profits paid after full recoupment of the capitalization is returned to the investors. Profits for an original production may include participation from other sources outside of New York derived from subsidiary rights, licensing fees, media rights and other publishing rights attached to company formed to present the original production.
· Other Fees -- other reimbursable amounts chargeable to productions, or fees paid for consulting services during the development of a new play or musical.

[Kev2222]

Posted: 10/26/07 at 2:10am

This information is also available in any of the books on producing commercial theatre. I'm not sure what your point is exactly.

[WickedBoy2]

Posted: 10/26/07 at 5:52am

...they get their money by charging the hilarious amount of $450 top ticket and the even more hilarious $60 bottom ticket!!! Simple and clever!

[One NYC StageHand]

Posted: 10/26/07 at 12:31pm

Due to a lot of misinformation going around on this board about the business of Bway and a semi-informed understanding of how stagehand work is performed, i thought a return to basis would be helpful.
Producers generally put very little of there own money into a production. They live off of OPM. By downsizing Bway and making it easier for the part time investor to put up their money on rather questionable ventures, what is being created here is lifetime employment for producers. I worked for one small time producer who said to me that the biggest reason he kept producing was to keep his office staff and himself working, making salaries and earning benefits.The art form was way down on his list of priorities. He was looking at making his shot at big money. He was willing to live off the brand that is Bway and the generations of professionals work that created that name recognition. But he had little concern about continuing to contribute to making that brand.
They name streets after producers. One Way

Posted: 10/26/07 at 3:41pm

Wow so you work for free cause you love Broadway so much?

[jpbran]

Posted: 10/26/07 at 7:31pm

A bitter cynic's take:
Producers make money by:

• NOT producing anything that's too intelligent or challenging
• NOT producing anything that's not family-friendly
• NOT producing anything that features completely original music
and
• NOT greenlighting anything to do with vampires