• Hollywood films have a short lifespan under which they operate.  Two to four weeks tops.  Producers know that within this lifespan the film must gain popularity at exhibition halls (movie theatres) before it goes onto DVD or the exhibitor will pull the show.  This is not a lot of time to gain momentum and attract audiences – thus the reason it costs ten times as much to produce a Hollywood film as it does to produce a  Broadway musical.  Marketing and Advertising costs are exorbitant, in order to attract an audience!

  • Broadway shows on the other hand are considered to be “slow burns”.  Traction begins out of town for 4 weeks of performances in front of live audiences plus 6 weeks of performances on Broadway prior to the Official Opening Night so there are 10 weeks to build popularity and marketing incentives to get the momentum started.

  • Hollywood films’ main revenue source is the domestic and international box office after which time ancillary revenues streams include DVD, Streaming, and Online Downloading.  In our comparison, none  of these films are still playing in theatres, thus the Box Office is no longer under consideration for future earnings.

  • As above, Broadway shows’ main revenue source is the Box Office, however, because of the immeasurable benefit that a Broadway production brings to a musical’s lifespan, subsidiary rights are extensive.  This means that producers’ enjoy percentage returns on EVERY production (high school, college, pro and community regional theatres, etc) that is done in the country and globally!  So if a production of say, Les Miserables, is done in Des Moines, Iowa at a local high school, the writers and the original Broadway producers are able to get a percentage of the fees charged to the high school by the licensing companies!  Additionally, for those shows that have not closed, the Box Office revenue is still being reaped for years to come!

  • Lastly, Producers of Broadway shows’ always retain the global subsidiary rights to create a NEW film based on the Broadway show, which they can sell or exploit on their own – so herein is yet another revenue stream!

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