Since approximately 1866, musicals have graced New York City in what we now call Broadway. Over this time, we’ve seen the role of technology enhance the audience experience, make the business of Broadway more efficient, and increase the reach of shows. Since the pandemic, many Broadway shows struggle to make ends meet, and Broadway needs to work quickly to adapt. There is potential to make the business of Broadway bigger than ever before…if we adapt quickly. So how can we do this? Let’s dive in!
Consider Other Entertainment Industries Besides Broadway
Broadway is just one of many entertainment industries, and is currently localized. That means it requires audiences to come to it to make money. No audience = no money. Consider what other industries are doing to adapt over time – Music, radio, and movies. You’ll see one thing in common that those thriving industries have, and that Broadway is not doing. We are not following the money. Remember the book, “Who Moved My Cheese?” Well, the “cheese” is moving.
Music Adapted To Reach A Global Audience
I remember sleeping overnight outside a local music store in college waiting for the release of a new cassette that they were not allowed to sell until the next morning. The store got them delivered late that afternoon and had them secure until the morning after when they could release it. Each store got a limited stock, so if you didn’t sleep out, you could miss that coveted opportunity to get that album.
Then the model changed. Music went digital. File sharing sites popped up and the music industry went nuts. You could upload your music files and share them with friends or others. Friends could share their files with other friends. Then the music industry adapted. They realized that the younger generation wanted to access music immediately, and that it built a community of sharing music. It adapted out of necessity and ultimately capitalized on the emerging digital music industry. We now see the results of that through Spotify, Apple Music, iTunes, and other streaming platforms. Then add on engagement with the music on social media with TikTok, Discord, Instagram and others.
Radio Adapted To Reach A Global Audience
Local radio stations built loyal local audiences throughout the 1900s and early 2000s. As the internet developed, some radio stations started to realize they could reach an even wider audience by bringing their stations online. Satellite radio evolved to reach a global audience. Then larger conglomerates, like iHeartRadio, grew to give audiences around the world access to local radio stations. You can now listen to a local radio station from Dallas, TX while listening to headphones while jogging through Central Park in NYC. Local advertisers can also now reach a wider audience because listeners are not limited to those within a few miles of the station.
Movies Adapted To Reach A Global Audience
Gone are the days of driving to a field to watch a movie on a large screen while sitting in a car, albeit for those nostalgic drive-in theaters around the country. As the movie theater model grew, technology helped to make it more efficient and accessible. Remember Movie-Phone? That’s where we called a phone number and a pre-recorded voice told us what movies were playing at the local theater and at what times. Then online movie ticket buying came. That helped avoid those long ticket lines we would stand at before a movie which we had to get in sometimes hours before for a chance to see the hottest movie. Ticketing could be done through computers, and then eventually our phones. Now you can simply look up movie times, purchase a ticket, and show your ticket at the theater, all from your phone.
Renting physical videos was also big business. Film studios were able to monetize movies after the initial theatrical release for home video use. This created tremendous revenue potential for the films. After the movie theater release ended, we would often wait months for the new release at our local video store who maybe had 3 copies and we would get on a waiting list for that phone call that the video was available for us to pick up in an hour before they gave it to someone else. Yes, that really happened. And if you didn’t rewind the VHS to the beginning before returning it, you got fined. As our viewing habits changed to a more home-based model with movies more available on tv, pay-per-view led to streaming and the home market continued to be big business.
Then the pandemic hit. Theaters were crushed. People didn’t want to go out. More and more films went online. Our viewing habits changed. We are now witnessing the movie industry adapting. Films may still premiere in traditional movie theaters, but many are also premiering online. Film studios can now reach audiences around the world by releasing their films online. Not every city has a movie theater, and many simply don’t have access to see first run movies.
Home release led to even more opportunities – digital release, then release of physical copies like DVDs, then foreign language dubs, closed captioning and even sign language versions. Viewers don’t have to spend the money and time seeing a film in a theater – think about the cost of gas, time getting ready and to/from the theater, or perhaps paying for parking. Like music and radio, the reach of the movie has significantly increased and the movie can be watched by a much wider audience. That access can lead to even more revenue – merchandise, film soundtracks, and other marketing opportunities. Films can even get advertisers for pre-show or post-credits, or even sponsor the credits. There is tremendous opportunity in this emerging market.
Broadway Business Needs To Adapt To Reach A Global Audience
Broadway is one of the few entertainment-related industries dependent on audiences that has yet to take advantage of the global potential. Sure, ticketing has changed. We can now buy tickets online and not have to spend time waiting at the box office to buy our tickets, or even pick them up. But Broadway remains limited by the number of seats and how many people are in town or coming into town to see any of the available shows.
The viewing model of Broadway remains fairly analog in a digital market.
For Broadway to expand, there needs to be a deep dive into what the future of Broadway, and the entertainment industry, might look like. Look at the audience habits. Audiences seem to want more ways of engaging with the industry, and want more accessibility on a global reach. Broadway shows continue closing without significant returns. Theaters need rents to survive. Thousands of arts workers need jobs. Creators are still creating.
Are Slime Tutorials The New Napster?
The music industry saw opportunity when Napster and other music sharing boards and websites had such vast numbers of users. There was revenue potential around the world. If we look at the younger generation, they are watching “slime tutorials” which is basically a bootleg of a Broadway show.
Slime tutorials didn’t ruin Broadway. If anything, it shows how wide of an audience Broadway producers are missing out on. The Tony-Award winning musical Hadestown, for example, has literally millions of views across the slime tutorials on just one major video sharing website. The show is still running on Broadway 4 years later with nearly 100,000,000 music streams on Spotify alone. Imagine if there was a professional capture or live stream available online while the show was still running on Broadway, or if the show was able to monetize those slime tutorials.
How to Monetize the Theater Industry
Taking some ideas from other sectors and more importantly, the younger generation, we should consider many potential revenue streams to increase the reach of Broadway, while making it more affordable and accessible. Here are some considerations:
Loyalty Cards
We can learn from the cruise and airline industries about loyalty and consider show loyalty rewards. I’m not talking about Audience Rewards, but actual show loyalty rewards. For example, if someone sees The Outsiders the Musical 5 times, maybe they get a special gold lanyard they can proudly wear at the show or to BroadwayCon. Maybe they get an exclusive experience or free upgraded seat if available or free merchandise. Maybe a patron gets a free drink or candy if they see the show more than once. Think about the excitement of a cruise passenger who reaches that Silver, Gold or Platinum level. This can reach beyond just shows – maybe Shubert Organization should consider Shubert levels to build loyalty amongst theatergoers. How many of you would join the 100 show club? Maybe you should get a free pre-show dinner at Sardis!
Cast Albums
The monetization of the music of Broadway is all over the place. Some shows use it more for marketing. Some use it as part of merchandise to make money towards the show’s overall revenue. Some license it out to others to produce and get a small fee or percentage of royalties. Some already recorded it before Broadway and can’t even do a Broadway cast album. Some just do a studio album. Some record extra tracks or instrumental versions. And it goes on.
There are several potential revenue streams for the music which shows should consider:
- Sheet music: If sheet music was generated for the album or show, consider including revenue from publishing the sheet music into the show’s revenue stream.
- Karaoke tracks: Create instrumental tracks and you get two albums for nearly the price of one.
- Fully orchestrated instrumental version of the show: Once the show goes into licensing, shows could significantly increase their revenue by having a fully instrumental version of the show with transition music. Theaters around the world may not have the funds or ability to play live music. An instrumental version of the show could significantly increase revenue potential and reach of the show.
- Music videos: Shows should have a film crew (or even just iPhones) record the cast album recording. Music albums can be monetized on YouTube and other video sites. It can also give shows assets for social media, and for a documentary (more on that below).
- Physical copies: Shows can sell physical copies, like CDs, at their shows. Shows all too often record their music at the end of the run and miss out on all of those opportunities to sell CDs or vinyl to in-market theatergoers at the shows.
- Streaming music: Digital music is most prominent now with the ease of releasing music at a low cost, and the wide reach of audiences. Revenue is much lower per listener and we should consider that when spending so much to produce albums.
- Exclusive merchandise: Get CDs signed by the cast and creatives and sell them at the show for more money. Press limited edition vinyl.
Documentary
Start documenting the show’s growth early. One of the potential assets of a show is the “making of” the show itself. That can be a separate feature film or docuseries leading up to, during or after its Broadway run. Consider interviewing not just the creatives, but also actors, mentors and fans. A documentary can be sold, streamed and otherwise monetized to bring more revenue to the production.
Live Capture: Monetizing Broadway Beyond the Theater Walls
Broadway has historically resisted live capture, fearing that making recordings available will reduce ticket sales. However, Hamilton’s massive success on Disney+ proved that live recordings can increase demand, not diminish it.
- New Revenue Model: Broadway should embrace high-quality, multi-camera live capture as a standard part of a show’s lifecycle, much like how cast recordings are expected.
- The Distribution Possibilities: Productions could license live captures to streaming services, offer them as limited-time pay-per-view events, or bundle them into Broadway-specific streaming platforms that cater to theater lovers.
- Maximizing Value: Some shows could adopt a staggered release model, with premium-priced digital rentals before wider distribution, ensuring that revenue continues well beyond the initial Broadway run.
Incorporating live capture into the business model could significantly extend the financial life of productions and allow a global audience to experience Broadway from anywhere.
Live Streaming: The Future of Broadway’s Global Expansion
What if Broadway productions weren’t limited to just the people who could physically make it to New York? Live streaming opens the doors for Broadway to truly become a global industry, making shows accessible to millions more people in real time.
- How It Works: A Broadway show could offer a limited number of live-streamed performances per week, with tickets sold at a slightly lower price than in-person seats.
- Ticketing Model: Live-stream access could be sold through a subscription service, one-time rental, or even bundled with traditional ticket sales (e.g., buy an in-person ticket and get an exclusive digital rewatch).
- Broadway + Streaming Platforms: Partnerships with Netflix, Disney+, Amazon Prime, or Broadway-specific platforms could unlock huge licensing deals for producers.
In an era where sports, concerts, and even eSports are streamed live, Broadway is missing out on a major revenue opportunity by not offering official, high-quality live-streamed performances.
NFT Ticketing: Reshaping Broadway’s Ticket Economy with Blockchain
Broadway has long struggled with ticket resales, scalping, and price inflation that doesn’t benefit productions. With NFT (Non-Fungible Token) ticketing, Broadway can take control of the resale market and generate revenue from secondary sales.
- How It Works: Each ticket is created as an NFT on a blockchain. If the original buyer resells it, a percentage of the resale price automatically goes back to the production. This continues for every resale transaction, ensuring the show benefits from its own demand.
- The Financial Impact: Imagine if every Hamilton or Sweeney Todd resale contributed a percentage back to the production—that’s tens of millions of dollars in lost revenue that could be reclaimed.
- Additional Benefits: NFT ticketing also eliminates fraud (as blockchain verifies authenticity), allows for smart contracts that regulate pricing, and lets producers offer special perks to NFT ticket holders (such as digital collectibles, backstage content, or exclusive experiences).
With the rise of blockchain ticketing in sports and concerts, Broadway can future-proof itself by adopting NFT tickets now before secondary markets continue to siphon away its profits.
Augmented Reality Experiences: Enhancing the Broadway Audience Experience
Broadway productions can dramatically increase revenue per audience member by upselling augmented reality (AR) experiences via special smart glasses or mobile apps.
- The Concept: Audience members can rent or purchase AR glasses that display additional digital effects layered onto the live show. This could include holographic elements, subtitles in different languages, behind-the-scenes trivia, or interactive elements synced to the performance.
- The Revenue Model: A per-show rental fee for AR glasses, premium experiences, and AR-driven sponsorships could create a new revenue stream without raising ticket prices.
- Immersive Storytelling: Imagine seeing Elphaba’s magic extend beyond the stage in Wicked, or having phantom-like illusions appear throughout the theater in Phantom of the Opera. AR could enhance the theatrical magic while increasing profits.
With Apple’s Vision Pro and other AR devices hitting the market, Broadway has a chance to embrace immersive storytelling in a way that no other live industry has done before.
Final Thoughts: The Business of Broadway Must Evolve
Broadway has survived for over a century, but it must innovate to thrive in the modern era. Licensing, live capture, streaming, blockchain ticketing, and augmented reality are just a few of the ways the industry can increase revenue, expand accessibility, and future-proof itself.
Broadway doesn’t have to choose between tradition and innovation—it can embrace both and unlock millions in untapped revenue while ensuring that live theater remains one of the most exciting and profitable entertainment industries in the world.