Broadway's Impact on the Economy


Broadway theatre has produced many outstanding shows in the past few years, a couple being Hamilton and Les Miserables. The amount of creativity and effort that goes into these shows is huge and that is why people are always craving more for them. For tourists on a trip to New York, a Broadway musical is surely to be on their list of things to do. Seeing as these plays are so popular, I researched into how much influence Broadway has on our economy.

In the year of 2016, Broadway musicals contributed approximately $12 billion dollars to New York's economy, with almost 50,000 tickets sold each day for every day of the year. Because there are 41 theaters accessible all around the city, profits stay pretty high on a consistent basis. But research indicates that the top ten most popular plays of all shows that go on during the time generate the majority of the revenue - around 52%. This is not surprising as people are inclined to attend the more interesting plays. Many Broadway shows fail to bring back results, as people may not have found the title interesting enough or the lack of quality in songs. Shows that cost millions to produce can simply be scrapped away and lost in the memories of viewers.

When a particular production blows up, however, people go crazy over it. When "Hamilton" first came out, attendance and tourism soared as demand rapidly increased. As there are a limited number of seats and supply, this demand increase also led to higher ticket prices. This change in ticket prices also show inelasticity. No matter how costly the price is, consumers will nevertheless pay to see the show.

Broadway definitely is a huge source of money for the city that never sleeps and can shake the world with its creative plays. How much would you pay to see a Broadway show like Hamilton?


Sources

https://www.nydailynews.com/new-york/broadway-feeds-billions-nyc-economy-runs-union-staff-article-1.3009328
https://econlife.com/2018/06/broadway-ticket-prices/
https://www.nytimes.com/2016/06/23/theater/anatomy-of-a-broadway-flop-why-these-4-shows-failed.html

Image
https://stocktonsymphony.org/files/2018/05/StocktonSymphony_featured_Broadway.jpg

Comments

  1. AnonymousApril 26, 2019 at 12:46 AM

    Stellar post Kim. While Broadway hasn't been a large part in my personal life, this post helps put into perspective the role it has in the lives of others. I think the question you propose at the end really is a good example of marginal utility and the derivation of marginal utility from person to person. Drawing from what we learned in class on marginal utility, the marginal utility I gain from watching a Broadway show is relatively low because it is not something I am as interested in; thus I would not pay much for it. On the other hand, someone heavily involved in theater or someone who avidly appreciates theater performances would be willing to pay a lot more money to witness the same show.

    https://www.investopedia.com/terms/m/marginalutility.asp

    ReplyDelete

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