“Most interested in Theater economics. Particularly, Discount Cash Flow Analysis as related to theater size. Are you aware of any studies on this? In plain English, is there any correlation between theater SIZE (number of seats, and by extension, potential revenue) and the success rate of the shows in those theaters (tranched by size). Let us say 500 to 700, 700 to 1000, 1000 to 1400, and so on. Does the House SIZE have any bearing on the success of a show? And if so, why?” – Barry
Jed: There is no study that I know of. My guess is there would not be much of a correlation. Show profitability does not really relate much to the seating capacity as it does to “demand,” capitalization costs, and running costs. If there is no interest in a show, it doesn’t matter how many seats there are in the theater and conversely, it could cost $100 per week to run a show or $1,000 per week – in the same theatre – based on what you are putting on the stage.
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