reprinted from 

October 22, 2005

The Great Green Way
 

Three Broadway shows just pushed ticket prices above $100. We look at what's behind the move

By JACOB HALE RUSSELL
 

A Broadway seat for $110? Mamma mia!

Three of New York's most popular musicals boosted their top everyday ticket price 10% this month -- exceeding the $100 ceiling that had held steady for more than four years. "Monty Python's Spamalot" kicked off the move. Two other hit musicals, "Mamma Mia!" and "Wicked," quickly followed suit, and other shows are expected to match the price. The increase was the first since "The Producers" spurred a wave of $100 tickets in April 2001.

The latest move comes at a time of rising production costs for ever-more-elaborate shows. "Spamalot," for example, which uses a hydraulic lift to raise the Lady of the Lake in a giant grail, had an initial investment of $12 million, a typical start-up cost for recent Broadway musicals. It helps that attendance is finally back to pre-Sept. 11, 2001, levels. Twenty weeks into the season, overall box-office receipts are up 11% from last year, and attendance has increased 6.6% in the same period.

The $110 ticket price refers to the face value of most orchestra and mezzanine seats available through the box office and retailers like Telecharge, which is the way most people buy tickets. It is possible to spend more on Broadway through premium programs, introduced by "The Producers" in 2001. Under these programs, which often are the only way to get last-minute seats, theatergoers pay up to $350 for the best seats.

Producers say that Broadway isn't strictly for the rich. Shows still offer a range of less-expensive tickets in the back of the house. Standing-room tickets for "Spamalot," for example, sell for $20. Theaters also pitch in leftover seats to the Theatre Development Fund, a nonprofit industry group that sells half-price tickets on the day of the show through its TKTS kiosks. The average ticket price in 2004-05 was $66.67, accounting for those bought at discount outlets. That's $10.67 more than in 2000-01. About 12% of Broadway tickets are purchased through TKTS, according to the fund.

Producers say the recent price increases are driven by the economics of Broadway, including rising advertising expenses. Payrolls can be especially steep for glitzy, labor-intensive productions. "What people expect to see in a theater is much more sophisticated and elaborate," says Jed Bernstein, president of the League of American Theatres and Producers, Broadway's trade association. Four out of five shows fail to recover costs, according to Mr. Bernstein. Last season, "Bombay Dreams" and "Little Women" closed after insufficient sales.

Some Broadway theatergoers say they don't mind the rising prices. "If you want to see the shows, you'll pay it," says Terry Martens, who visits regularly from her home in New Smyrna Beach, Fla. She says theater prices don't seem to have gone up more than her other expenses. Her balcony tickets to Thursday night's "Mamma Mia!" cost $60.

Across Broadway, the average price paid for a ticket increased roughly 8%, accounting for inflation, from the 2000-01 season to 2002-03, while production expenses rose 10%.

The three shows that made the move to $110 are among Broadway's most popular. All three play to nearly sold-out houses nightly, with "Spamalot" about 102% full in recent weeks (meaning a person in every seat and some folks standing). On Oct. 6, the show's producers announced they had recouped their initial investment. A spokesman for "Wicked" says steady demand over its two-year run was behind the price increase, while a "Mamma Mia!" spokesman blamed rising expenses. A spokesman for "Spamalot" declined to comment on the change.

Compared with other forms of entertainment, Broadway's recent increases are small. The average price for an NFL ticket rose 24% between 2001 and 2005, according to Team Marketing Report, which tracks sports marketing data. Average concert prices rose 19% from 2001 to 2004, according to Pollstar, a music market-research firm.

The road versions of Broadway shows remain a bargain compared to New York, with the average ticket costing $51.32, up 4.4% since the 2000-01 season. Las Vegas is an exception. The "Mamma Mia!" engagement there increased its price last year by $16.50 to $110, including tax.

There are still ways of finding lower-priced tickets in New York. Some shows hold afternoon lotteries for inexpensive tickets. Membership in the Theatre Development Fund, which costs $25 and is open to certain groups like students and teachers, offers tickets at prices sometimes well below half price.