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| Roche Schulfer, with Dennis Bassett, Kevin Sweeney, and Chris Mannelli |
Schulfer began with an interesting reframing of the
question, turning “Why not-for-profit?” into “Why not for-profit?” He let us
chew on a few statistics: Broadway has an 80% failure rate (defined as failing
to make a return on investment, the holy grail of capitalism), and there are zero
for-profit orchestras, opera or ballet companies (you might google and find one
or two, but that’s virtually none). Unlike Geva and other not-for-profit (NFP)
theatres, which plan a season’s worth of subscription shows, each Broadway show
is a stand-alone business, driven by return on investment to producers and
investors. This discourages risk-taking, and leads to lots of musicals,
revivals, or adaptations from other sources. It also means most shows are usually
star-centered, and ticket prices are as high as the market (mostly tourists)
will bear.
The model that has developed for NFP theatres (and other
performing arts organizations) usually includes: 1) art, not commerce, being
the impulse for programming, 2) below-market ticket prices that minimize
resistance to new work, 3) education and community programs, and 4) ticket
income supporting 45-65% of budget. Understanding this, it’s easier to
understand Parrish’s remark. Geva’s mission includes a plethora of educational
programs and outreach, as well as a desire to keep ticket prices at a level
that encourages a diverse audience. Ticket income, especially subscription
income, is always well below the cost of productions. Hence, the need for
donations – from individuals, foundations, and governments. That includes the
NEA, which was created in 1965, and which each Republican administration seems
to want to dismantle because they do not see the value of the arts in communities.
The NFP theatre industry also turns out to be a critical
part of Broadway’s success. Most new musicals, and plays by unknown
playwrights, begin their lives at NFP theatres for a “try out,” getting kinks
worked out and demonstrating their potential for commercial success before
heading to Broadway. This recipe doesn’t guarantee success, however, as
demonstrated by the recent transfer of War
Paint from the Goodman to Broadway; it featured two of Broadway’s divas, Patti
LuPone and Christine Ebersole, and couldn’t survive the departure of one of the
stars.
One of the reasons so many performing arts organizations
are non-profit is that expenses continue to rise, but they can’t realize
increases in productivity. since the product is the labor of artists and occurs
in real time (it reminds me of the joke about 9 women not being able to make a
baby in 1 month). In addition, seating capacity is fixed. While theatres might
be able to extend a hot show by a week or two, they can’t magically add seats
to the theatre. So, the economics dictate the need for subsidy. Otherwise, if
these organizations increase ticket prices to cover expenses, they could price
themselves out of existence. Should we care?
Zelda Fichandler, co-founder of Arena Stage, in
Washington, D.C., expressed the answer to that question perfectly – that
theatre is “an instrument of civilization no less important to the life of a
community than a church, a major library, a museum, or a university.” *
It’s difficult to distill all of the information Schulfer
provided into a short(ish) blog, let alone into a 2-minute curtain talk or
‘elevator speech’ to communicate to the public the need for financial support.
And most audiences just want to be entertained, not to be asked for money. But
without funding, NFP theatre, which has become America’s national theatre, will
cease to exist. I, for one, think that would be a great loss.
* https://www.americantheatre.org/2016/08/05/zelda-fichandler-valiant-striver-in-the-arena/
* https://www.americantheatre.org/2016/08/05/zelda-fichandler-valiant-striver-in-the-arena/
