The Top 5 Reasons Why Broadway Grossed Almost $2 billion bucks.

Last week, I wrote about the record-breaking reported Broadway gross of $1.7b (and why I believed it was more like $2b).

And this week, I want to talk about why we’re smashing records like a 1950s preacher who thinks rock-n-roll is the devil.

Broadway has been growing by leaps and bounds over the last few years and, while there are a number of reasons we are where we are, here are my top five.

1. It’s a Family Thing

There are more family musicals on Broadway now than there were decades ago.  This past season we had all the Disneys (including the new Frozen) as well as Anastasia, School of Rock, Charlie, and more.  And when you’ve got a family musical, the average customer’s order is more than 2 tickets.  More tickets = more bodies = more bucks.  And despite the increased number of shows that favor the family, we haven’t seemed to reach an oversaturation point.

2. There is no Top Price anymore

A little over 10 years ago, we introduced the “Premium Ticket,” which was a higher priced ticket for the better seats in the house.  In the past few years, the price of tickets has become fluid, rising (and falling) due to demand, just like an airline ticket.

And one trend that I’ve noticed lately is that most shows aren’t just relying on their General Managers to handle the complex process of analyzing and tweaking prices daily.  Producers are now hiring analysts either inside their ad agencies or independent experts to handle this for them.  Why?  It’s easy to justify the extra expense with the amount of money that could be made with even the slightest tweak up on ticket prices or the slightest tweak down on ticket prices (that moves more volume).

3. He’s The Boss . . . and Events

Certainly one of the biggest gross bumpers in the last season was the surprise long runner, Bruce Springsteen.  While everyone expected him to gross in the millions. . . no one expected him to stay this long!

While some have grumbled that he’s occupying a prime theater when a new musical or a new play could be in his spot, you won’t hear me complaining.  A short-term loss of a theater for the long-term effects of getting new audiences and frankly, just being able to say, “Broadway is so cool, Bruce Springsteen played here,” is worth it.

But The Boss isn’t the only one who has helped spike our numbers over the last few years.  We’ve had a lot of short-term fillers that have popped into theaters in-between bookings and added to our bottom line.  I’m talking shows like The Illusionists and Rocktopia.  Ok, ok, so those shows may not be what we want the world to think of when they think Broadway, but if a theater is dark, something is better than nothing.  (A dark theater is one of the most depressing things there is.)

4. The Hamilton Effect

Hamilton got a @#$% ton of press.  And still does!  A reporter at a local news org told me that her editors instructed her to write about Hamilton every chance she got because the views on each article were off the charts
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Hamilton was a lightning rod to our industry.  People were talking about it all over the world.  And when shows hit juggernaut status and are featured on The Grammys and on the cover of Rolling Stone, etc., that doesn’t just sell more tickets to Hamilton… it sells more tickets to Broadway.  It’s the trickle-down effect, and all of us are benefiting.

So if you see Lin-Manuel, say thanks.

5. We’re creating great content

The most important reason we’re killing it these days is the most simple and also the best way to build any business . . . we’re creating great product. Hamilton, Dear Evan Hansen, Come From Away . . . we haven’t put this many big-grossers on our boards since 1957-58, when West Side Story, My Fair Lady, and Music Man were all on the boards, or since Les Mis and Phantom opened a year apart.

Don’t let any fast-talking marketing guru sell you on billboards, direct mail, or remarketing as the secret to selling tickets. It is much simpler.  The best marketing in the world is creating a great product.

Yes, we’ve gotten a lot of attention over the past few years thanks to Hamilton, The Obamas attending Broadway shows, Glee, Smash, Live Telecasts, and more . . . but that attention wouldn’t convert to sales unless we were creating shows that people wanted to see.We’re rising to the challenge, and that’s something we should be proud of.

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GUEST BLOG: Should Bots Be On Broadway? by Monica Hammond

Imagine a world where everything is automated.

Actors move on stage with the click of a button. Their voices echo through the theatre like Alexa and Siri . . . hey, they can even do accents! Light cues are triggered automatically by blocking bots . . . the whole theatrical experience is run by a bunch of 0s and 1s!

No?

Well good. Because that’s not the kind of Broadway bot I’m talking about!

I’m talking about marketing bots.

Marketing bots are the hot topic today at all the major Marketing conferences across the country, and these bots take many forms. From Facebook messenger bots to pre-filled website chats, bots are automating the customer journey for many businesses.

Imagine you are on the ticketing page of a Broadway website and you’re confused as to where the best seats are located (a common question on our Once On This Island chat), then an automated pop-up asks, “any questions I can help you with regarding seat location?”

“Why, I thought you’d never ask!” you may reply!

After typing your question, a real person is alerted on the other end via a pop-up notification that you’ve started a conversation and now you’re speaking with a living and breathing person! After your questions are answered, you feel confident in your seat location and whip out your credit card!

This transaction was prompted all because of an automated chatbot. The customer’s questions are answered and the show gets to put some butts in seats. Seems like a win-win to me.

Bots can provide proactive customer service by prompting and answering frequently asked questions to help customers overcome objections and lead to a quicker sale. They also lessen the need for humans on the phone until one is truly needed, which can help reduce costs for businesses and streamline communication.

Sounds pretty efficient, right?

As an experiment, I visited the website of 18 Broadway shows to see if any were using a basic automated chat feature. I was surprised to find that 18 out of 18 Broadway show websites did NOT have a chat feature, at least that I could detect, and it made me wonder . . .

Why isn’t Broadway using bots?

Some patrons prefer to pick up the phone and ask the box office where they should sit, some want to send an email, and others prefer to chat their questions. So why not offer chat as another option?

If bots and automation are at the forefront of digital communication, then why hasn’t Broadway caught on? Should we reallocate customer service team members to accommodate a new mode of conversation? Are we stuck in the digital Stone Age? Are we too focused on the concept of “authentic conversations” in the digital space to try a bot? Does the use of bots automatically mean inauthentic?

The world of bots is advancing by leaps and bounds each day, and the potential for marketers seems truly endless. Bots are the new email, the new phone number, the newest mode of conversation, and Broadway should consider the implications of their use with our audiences, because not all bots are bad.

What do you think? Should bots be on Broadway?

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Monica Hammond is the Director of Marketing for Davenport Theatrical Enterprises. Broadway: Once On This Island (Circle in the Square) and Gettin’ The Band Back Together (Belasco Theatre, 2018), Spring Awakening (Brooks Atkinson Theatre). Off-Broadway: Daddy Long LegsShear MadnessThat Bachelorette Show, as well as the North American Tour of A Night With Janis Joplin. Monica also manages Ken Davenport’s members-only community for theatre professionals, The Producers Perspective PRO. Monica also runs her own custom coloring book business Curious Custom.

If you enjoyed this content, join Monica at her upcoming Crafting Your Marketing Plan workshop. Extremely limited availability remains!

Broadway Grosses w/e 6/3/2018: The new season starts off with a . . . bump.

The following are the Broadway grosses for the week ending June 3, 2018.
The Broadway grosses are courtesy of The Broadway League
Read more here:

Why Broadway’s Record-Breaking Gross of $1.7b is NOT Accurate.

Just yesterday, the headlines trumpeted that Broadway just had its best grossing year evah . . .  with a total tally of $1,697,458,795 in ticket sales for the ’17-18 season.

In case you can’t count all those commas, that’s just shy of $1.7 billion buckaroos.

And, if you’re keeping score, that’s a 17.1% increase over the previous year’s grosses of $1.45b.  (If you’ve heard me deliver a keynote on the future of Broadway, you now know why I’ve been calling it a growth industry, and also why I’ve said if there was a Broadway Index Fund, I’d be buying it like mad.)

But here’s the thing, folks . . . that $1.7b in ticket sales is as wrong as taking a seven-year-old to see Avenue Q because it has puppets.

Broadway did NOT sell $1.7b worth of tickets last year.

Broadway sold a lot MORE than $1.7b worth of tickets last year.

That’s right, our gross was actually higher than reported.  (Side note: raise your hand if you read the subject of this blog and thought I was going to say that the grosses were lower, just because I said the # was wrong.  Why is it we always assume the negative?  Anyway . . . )

How did we sell more than the dollars reported?  Did the Broadway League forget to count a theater?

Of course not.  The Broadway League got their count just right.

But what is NOT included in the above gross is the amount of money ‘above face value’ paid for Broadway tickets in the SECONDARY MARKET.

I’m talking about StubHub, SeatGeek, and all the other resellers out there who have made millions reselling HamiltonDear Evan Hansen, and many non-mega hits as well, to their clientele that doesn’t mind paying above face-value for their seats.

So how much more? Well, no one knows for sure, but if we sold $1.7b worth of tickets, I gotta estimate that there was at least $300mm in above-face-value monies made by secondary sellers.  And I think that’s a LOW estimate.

That means Broadway is a $2b industry.

How did we get here?  And will we top this next year?

Tune in for next week’s blog (click here to subscribe) and I’ll reveal my Top 3 Reasons Why We Topped $1.7 $2 Billion and make my predictions for next year’s gross.

Broadway Grosses w/e 5/27/2018: Memorial Day Starts the Summer and the Tourist Season

The following are the Broadway grosses for the week ending May 27, 2018.
The Broadway grosses are courtesy of The Broadway League
Read more here:

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