This episode explores the economics of the Broadway theater industry, contrasting its perceived size with its actual influence. Against the backdrop of Broadway's high production costs and the "cost disease" affecting labor-intensive industries, the discussion features interviews with producers, including Jeffrey Seller (Hamilton), who highlight the challenges of balancing artistic vision with financial realities. More significantly, the conversation delves into the role of investors, landlords, and unions in shaping the industry's dynamics, with producers describing the precarious nature of the business and the unpredictable success of shows. For instance, the contrasting fates of "The Who's Tommy" and "O Mary" illustrate the inherent risks and unpredictable nature of Broadway productions. The discussion also expands to the broader theatrical ecosystem, encompassing touring productions and high school musicals, revealing how a show's success on Broadway can significantly impact its profitability and longevity across different platforms. Emerging industry patterns reflected in the high cost of Broadway productions and the significant role of licensing fees for high school and amateur productions are discussed.
