Broadway Analysis

Group Members:
David De Rosa
Julie Lefeuvre
Amanda Paquin
Sonny Patel
1

Executive Summary
Research on Broadway was conducted to increase annual Broadway attendance of the secondary
target audience. From this objective, Broadway should subsequently see an increase in annual revenue
and ticket sales. The research was conducted to obtain a better understanding of the entertainment and
Broadway industries, as well as, an understanding of the attitudes and purchasing habits of theatergoers.
The methodology of this study began with a situational analysis to determine the history and
current state of the entertainment and Broadway industries. The target audience for Broadway was
researched and analyzed. Following the target audience analysis, secondary markets were determined.
These markets were targeted in a survey with a sample size of 42 males and females. The survey results
were analyzed in IBM SPSS to interpret the data and determine suitable conclusions recommendations.
We have found that the cast, advertising and ticket prices are major factors in patrons willingness
to attend Broadway. Members of our secondary target audience are likely to recommend Broadway
shows and research the shows ticket prices before attending. This shows a high level of preparation
when considering a Broadway show. Satisfaction is dependent upon the theatergoers perception of
Broadway. Future attendance is dependent upon the cast members of the Broadway show. Word-ofmouth is dependent upon the theatergoers willingness to attend Broadway.
We recommend that Broadway increase advertising towards secondary markets, continue to cast
celebrity actors, and increase awareness of discount ticket options.

Industry & Market Trends

Market Size
Shows in Production

48

323

222

Broadway
Off-Broadway
Off-Off-Broadway

40 Broadway Theaters in Manhattan make up Broadway

2010-2011 season: 42 shows opened
2010-2011 total attendance: 12,534,595
2010-2011 attendance grew 5.4% from 2009-2010

Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. <http://www.theatermania.com>.
The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. <http://www.broadwayleague.com>.

Trends in Sales
Yearly Grosses
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000

20
10
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1
09
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20
0
08
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00
20
9
07
-2
00
20
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06
-2
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20
7
05
-2
00
20
6
04
-2
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20
5
03
-2
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20
4
02
-2
00
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-2
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00
-2
00
1

Ticket sales have steadily increased over the past decade

During the financial crisis, ticket sales remained constant from previous year
5
The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. <http://www.broadwayleague.com>.

Ticket Price Trends

Average Broadway Ticket Price
($)
2010

82

2006

67

2000

52

1999

50
0

20

40

60

80

100

Steady increase in average Broadway ticket price due to economic inflation

$32 increase in average price in 11 years
2010 average Orchestra ticket price is $140
"There's No Business like Broadway's: Lessons in Ticket Pricing from New York | Stage | Guardian.co.uk." Latest News, Sport and Comment from the Guardian | The Guardian. Web. 23 Oct. 2011.
http://www.guardian.co.uk/stage/theatreblog/2011/jan/17/broadway-lessons-ticket-pricing-discounts.
Robertson, Campbell. "Broadway - Tickets - Theater - New York Times." The New York Times - Breaking News, World News & Multimedia. 23 Oct. 2011. Web. 23 Oct. 2011.
<http://www.nytimes.com/2006/05/08/theater/08tick.html?pagewanted=all>.
Back Stage; 06/09/2000, Vol. 41 Issue 23, p5, 2p
"There's No Business like Broadway's: Lessons in Ticket Pricing from New York | Stage | Guardian.co.uk." Latest News, Sport and Comment from the Guardian | The Guardian. Web. 23 Oct. 2011.
<http://www.guardian.co.uk/stage/theatreblog/2011/jan/17/broadway-lessons-ticket-pricing-discounts>.

Lifestyle Trends
Those are attended live theater in the last 12 months are
Sample
40 times more likely to be politically very liberal
compared to the average
(000)
Liberal outlook is projected to appeal to the audience
Vertical
Will Ferrell starred in Youre Welcome America
Horizontal
Growth of contemporary rock music in original musicals
Popular musicals include: Spring Awakening, Bloody
Index
Bloody Andrew Jackson, & Rock of Ages
Base
Growth in new productions from novels
Popular titles include: The Light in the Piazza, Les
Liaisons Dangereuses, The Color Purple, & Wicked
Growth of new musicals from film
Popular musicals include: The Little Mermaid, Beauty
and the Beast, Shrek, Legally Blonde, 9 to 5, The
Wedding Singer, Mary Poppins, & The Lion King
Popular musicals include: Spring Awakening, Bloody
Bloody Andrew Jackson, & Rock of Ages
Simmons Choices 3
Back Stage (19305966); 2/12/2009, Vol. 50 Issue 7, p10-11, 2p, 1 Color Photograph
Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. http://www.theatermania.com.

189

3,091
6.64%
30%
140
1.41%

Seasonal Factors
Highest grossing months include:
December and April
A steady increase in total sales leading
up to December
Fall show openings occur in
November
Theatergoers are purchasing
tickets for holiday gifts

Seasonality of Total Broadway Ticket Sales

Steady increase after the holiday

season leading up to April
Spring show openings occur in
April
Tony award nominees are
announced in the spring

8
Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. <http://www.theatermania.com>.

Changes in Consumer Relationship

Change from Broadway star to main stream stars on Broadway
Original Broadway stars include: Bernadette Peters, Angela Lansbury, Patti
LuPone, Julie Andrews, Fred Astaire, Gene Kelly, and Ben Vereen
New Actors to Broadway include: Catherine Zeta Jones, Dane Cook, Julia
Stiles, Daniel Radcliffe, Laura Linney, Brooke Shields, and Christina Rucci
A focus on musicals appropriate for child audience
Popular titles include: Cats, Beauty and the Beast, Shrek, The Addams Family,
The Lion King, Mary Poppins, Spiderman: Turn Off the Dark

"Broadway: The American Musical . Stars Over Broadway | PBS." PBS: Public Broadcasting Service. Web. 23 Oct. 2011. <http://www.pbs.org/wnet/broadway/stars/index.html>.
Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. <http://www.theatermania.com>.

Internal Industry Trends

10

Top Ten Broadway Hits

Rank

Show Name

Gross

Avg Tkt Price Broadway Run

Performances

Phantom Of The Opera

$770.0M

$76.75

24 years*

9283

The Lion King

$699.1M

$104.85

15 years*

5197

Wicked

$467.6M

$108.90

9 years*

2718

Beauty & The Beast

$429.2M

$86.20

14 years

5461

Mamma Mia

$416.9M

$83.14

11 years*

3560

Les Miserables

$406.3M

$80.76

17 years

6680

Chicago

$377.4M

$77.72

16 years*

5612

Cats

$366.4M

$59.56

19 years

7485

The Producers

$288.4M

$67.48

7 years

2502

10

Miss Saigon

$285.8M

$65.71

11 years

4092

*Denotes a Presently running show

Disney has been successful on Broadway after producing six Broadway

shows including: Beauty & the Beast, Tarzan, The Lion King, Mary Poppins,
Aida, and The Little Mermaid. Disney has produced two productions that rank
in the top 4 major hits in Broadway history.
11
"15 Biggest Broadway Hits of All Time." CNBC. CNBC, n.d. Web. 22 Oct 2011. <http://www.cnbc.com/id/39656612/15_Biggest_Broadway_Hits_of_All_Time>.

Trends in Spending
2010 2011 Spending
Broadway Spending

Direct Spending
(million $)

Total Impact
(million $)

Spending by Broadway
Tourists

$5,192.2

$7,700.1

Show Expenses

$949.2

$2,048.5

Theatre Expenses

$34.6

$51.4

$6,175.9

$9,800.1

Total

Broadway positively impacts New York Citys economy

Broadways substantial economic contributions strengthens the ties with city
community

12
The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. <http://www.broadwayleague.com>.

Trends of Growth
2010-2011 produced record high gross with a 5.9% increase from previous year
2010-2011 attendance grew 5.4% from last year

13
The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. <http://www.broadwayleague.com>.

Current Positioning

Broadways main objective is to sell tickets

Broadway positions towards tourists over Manhattan locals
Producers will open productions with familiar titles to draw in tourists
Directors will cast familiar actors/actresses to draw in tourists
Broadway aims to provide entertainment for all ages that may appeal to a mass
audience with a wide genre of productions
Heavy users attend 6+ live events per year (6%)
The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. http://www.broadwayleague.com.

14

Research Methodology

15

Goals & Objectives

The goal of this study is to determine why the secondary target audiencecouples
with children or planning to have children between the ages of 25 44is not
attending Broadway as often as the primary target audience which includes couples,
families and individuals 45 years of age and older. Given the high attendance rate of
the primary target audience, we chose to focus on the variables that negatively impact
the next largest audience in hopes that it will increase that segments attendance.
The objectives of this study are to increase annual Broadway attendance of
secondary target market and subsequently increase annual revenue and ticket sales for
Broadway. Additionally, the study aims to discover a better understanding of the
attitudes and purchasing habits of the secondary target market.

16

Type and Intent of Study

The situational analysis using secondary research from Simmons Choices 3,
Playbill.com, Theatermania.com, and Broadwayleague.com will assist with the intent
of the Broadway study. The research will aim to get a better understanding of the
overall entertainment and Broadway industries and to understand the attitudes and
buying habits of the primary target audience.
The survey analysis using primary research by surveying the secondary targets
attitudes toward Broadway will show results that can assist with recommendations and
conclusions. The primary research will aim to understand the attitudes and buying
habits of the secondary target market and determine factors that may or may not
increase or decrease the attendance of Broadway performances.

1st

2nd
17

Definition of Population & Methodology

Sample size: 42
Gender: Males & Females
Age Range: 25 44
Martial Status: Any
Children: Planning to have or currently have one or more children
Geographic Region: New York, New Jersey, Pennsylvania, Connecticut and Lyon, France
Ethnicity: African American, Asian, Caucasian, Hispanic and Multi-Racial

From November 10th 2011 to November 27th 2011, 43 surveys were administered to occupants of
the general Northeast area in 4 different locations. Survey questions were chosen based on a situational
analysis of the entertainment and theater industries and their relevance to the goal of this study. In total,
43 questionnaires were distributed and 42 were deemed valid, representing a usability of 98%.
Preliminary questions were asked to ensure each survey taker was within the secondary target market
population. Survey questions were asked to determine factors that inhibit Broadway attendance.

18

Questionnaire Development
Survey Objectives
To discover the factors that most influence the buying and spending habits of
Broadway-goers in either a negative or positive way.
Data Collection Method
Most of the surveys were self-administered. A few surveys were administered via
email. Potential survey-takers were screened to determine whether they had children,
and if not, were excluded from the study.
Individual Question Content
To remain unbiased and objective, various attitude questions were asked, using the
semantic differential method. This method demonstrated the level of attention of
survey-takers. Various, nominal, ordinal, interval, and ratio questions were asked.
Ratio questions were asked to limit the inability to respond.
Question Wording and Sequence
Objective wording was used to avoiding leading respondents to a desired
response. The sequence of survey questions were ordered from broad to detailed and
ended with demographic questions.

19

Primary Research Analysis

20

Segmentations & Target Market Choice

The research objective to

survey both men and women
was met. Findings show
that there were slightly more
men surveyed then women.

21
IBM SPSS Statistics

Segmentations & Target Market Choice

69.04% of the survey

population are
Caucasian. This
statistic is consistent
with the target market
defined in the
situational analysis.

22
IBM SPSS Statistics

Descriptive Survey Analysis

From the people surveyed:

5 earn less than $40,000
a year.
22 earn between $40,000
to $80,000
8 earn between $80,000
to $125,000
5 earn between $125,000
to $200,000
2 earn more than
$200,000

23
IBM SPSS Statistics

Segmentations & Target Market Choice

From those surveyed:

19 have 1 child
14 have 2 children
7 have 3 children
1 has 4 children
1 has more than 5
children

24
IBM SPSS Statistics

Segmentations & Target Market Choice

Out of those surveyed, the

vast majority (78.57%) had
attended a Broadway show in
the last 12 months. Although
their past attendance does not
determine their future
attendance, this shows that
most of those surveyed have a
prior interest in theater.

25
IBM SPSS Statistics

Means Analysis

1-7

1-5

IBM SPSS Statistics

Statements
The cast of B'way determines my desire to
attend.

Mean
3.67

I am likely to recommend a B'way show.

4.60

Advertising for B'way influences my choice

of show.
I go to B'way because my family wants to
go to B'way.
I research B'way ticket prices before
choosing a show.

3.68

I attend B'way because I want to.

4.74

I only see B'way shows for special

occasions.

4.26

After attending a show I dislike, I will

continue to attend B'way in the future.

4.19

I am satisfied with the price of my B'way

tickets.
Makes me feel valuable.
Makes me feel wise.
Makes me feel pleasant.
Makes me feel nice.
Makes me feel agreeable.
Makes me feel happy.
I find B'way positive.
I find B'way exciting.
I find B'way affordable.
I find B'way stimulating.

3.14

3.52
4.00

3.43
3.52
4.33
4.21
3.36
3.98
4.26
3.81
2.26
3.14

Theater-goers are indifferent towards a

Broadway shows cast (11.9%), influence of
advertising (19%), researching ticket prices
(9.5%), and attending Broadway based on
familys wants (2.4%) and special occasions
(11.9%). The above values indicate the
percentage of the median responses. Of the
survey-takers, 54.7% responded any disagree
that they are satisfied with their ticket price.
The results also showed that 57.1%
responded any agree to recommending a
Broadway show and 61.9% to attending
Broadway because they wanted to.

26

Correlation Analysis
Correlated Statements from Survey Questions
The cast of Broadway influences my desire to attend.
I seek out new productions on Broadway.
I only see Broadway shows for special occasions.
I attend Broadway because I want to.
I will continue to attend Broadway after being dissatisfied.
Broadway makes me feel wise.
I find Broadway to be exciting.
I find Broadway to be exciting.
Broadway makes me feel nice.
I attend Broadway because I want to.
Broadway makes me feel wise.
Broadway makes me feel valuable.
Broadway makes me feel valuable.
Broadway makes me feel wise.

0.586
0.546
-0.803
0.797
0.545
0.532
0.587
0.587
0.542
0.570
0.600
0.571
0.581
0.620

I will attend Broadway in the next 12 mos.

I will attend Broadway in the next 12 mos.
Attended Broadway last 12 months.
I am likely to recommend a Broadway show.
I am likely to recommend a Broadway show.
I am likely to recommend a Broadway show.
I am likely to recommend a Broadway show.
I am likely to recommend a Broadway show.
I am likely to recommend a Broadway show.
I find Broadway to be exciting.
I find Broadway to be exciting.
Broadway makes me feel wise.
Broadway makes me feel useful.
Broadway makes me feel useful.

Statements from the survey results were rated. Using SPSS, the data was able to be
correlated for similarity. Negative correlations indicate an inverse relationship between
two statements. For example, when the survey taker agreed that they only see
Broadway show for special occasions, they did not attend Broadway in the last 12
months. Strong positive correlations indicate that both statements are likely to happen
together. When theatergoers attend Broadway because they want to, they are also likely
to recommend a Broadway show.
27
IBM SPSS Statistics

Correlation Analysis
Correlated Statements from Survey Questions
I attend Broadway because I want to.
I am dissatisfied after going seeing a Broadway show.
Broadway makes me feel wise.
Broadway makes me feel pleasant.
I am dissatisfied after going seeing a Broadway show.
Broadway makes me feel valuable.
Broadway makes me feel wise.
Broadway makes me feel pleasant.
Broadway makes me feel wise.
Broadway makes me feel useful.
I am dissatisfied after going seeing a Broadway show.
I will continue attending Broadway after being dissatisfied.

0.537 I find Broadway to be positive.

-0.621 I find Broadway to be positive.
0.590 I find Broadway to be positive.
0.505 I find Broadway to be positive.
-0.622 Broadway makes me feel nice.
0.509 Broadway makes me feel nice.
0.568 Broadway makes me feel nice.
0.795 Broadway makes me feel nice.
0.634 Broadway makes me feel pleasant.
0.547 Broadway makes me feel pleasant.
-0.653 Broadway makes me feel pleasant.
0.508 I attend Broadway because I want to.

The above statements are additional correlations that were found using SPSS. The
correlations are made through the attitudes of the survey takers. When Broadway makes
the target feel pleasant, the target also feels nice. When the target is dissatisfied after
going to see a Broadway show, the do not feel pleasant.
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IBM SPSS Statistics

Regression Analysis: Satisfaction

IV

Feel
pleasant

IV

DV

Dissatisfaction

Find
Bway
positive
Satisfaction is dependent upon the theater-goers perception of Broadway. When the
theater-goer does not feel pleasant towards Broadway or find Broadway positive, then
dissatisfaction occurs. Feeling pleasant has a significance of .012 and finding Broadway
positive has a significance of .011. These high significances support our interpretations of
Broadway dissatisfaction.
29
IBM SPSS Statistics

Regression Analysis: Future Attendance

IV
DV

Cast

IV

I will attend Bway in

the next 12 mos.

Attend
last 12
mos.
Future attendance of Broadway is dependent upon the cast of the Broadway show.
Attending a Broadway show in the last 12 months does not affect future attendance.
The casts of Broadway hold a significance of .002, while the previous attendance
has a significance of .010.
30
IBM SPSS Statistics

Regression Analysis: Future Attendance

DV
IV

I attend
Bway
because I
want to

.508

After disliking a Bway

show, I will continue to
attend Bway

After a theater-goer experiences dissatisfaction from seeing a Broadway show, they

are still likely to attend Broadway in the future. With 99% confidence, future
attendance is dependent upon theater-goers attending Broadway because they want
to. The dependent variable has a beta coefficient of .508.
31
IBM SPSS Statistics

Regression Analysis: Word of Mouth

DV
IV

I go to
Bway
because I
want to

.596

I am likely to recommend
a Bway show

Word of mouth affects the future attendance of Broadway. The likelihood of a

theater-goer to recommend a Broadway show is dependent upon the theater-goer
attending Broadway because they want to. The beta coefficient is .596. There is a
100% confidence level in the relationship between independently attending
Broadway and their recommendations to others.
32
IBM SPSS Statistics