“ONCE A BACKWATER OF THE

ENTERTAINMENT INDUSTRY,

BROADWAY IS NOW AT THE CENTER

OF AMERICAN POPULAR CULTURE.”

MICHAEL RIEDEL, VARIETY, MAY 2019

BROADWAY THEATERS:

AN ECONOMIC ENGINE FOR NEW YORK

The recently concluded 2018-19

The Broadway

League represents

the interests of

show producers,

theater owners and

general managers.

During the 2018-

19 season, Broadway

productions grossed $1.83

billion in ticket sales, up 7.8% over

attendance of the 10 professional

major league sports teams in

New York City and New Jersey.

It is important to note that the gross

sales and attendance figures

cited below do not reflect

any of the Broadway

shows currently

touring across

North America.

of the factors that contributed

to Broadway’s recent record-

breaking season. We also examine

some not-so-ancient history as

well as Broadway’s contribution

to New York City’s economy.

INTRODUCTION

1

Great White Way is the name given to the section of Broadway that runs through

the Theater District. Dozens of new musicals and long-running, beloved hits are

available every night of the week at numerous venues in the Theater District.

2

Ticket sales to Broadway shows have, for the most

part, increased every year since the 2008-09

season, with a total increase of $809 million, or

79.3%. Similarly, attendance at Broadway shows has

50% from nearly 10 million in 1968 to five million in

1972, a record low. A contemporary New York Times

article cited high ticket costs, poor productions

and the “fear of entering the midtown area” (Times

Square) as the main reasons behind the drop.

The redevelopment and rezoning of Times Square

in the 1990s helped to transform the area into the

tourist-friendly place we know today. Many of the

changes were due in large part to the actions of the

Disney Company, which bought and restored the

large number of chain restaurants, such as Ruby

Foo’s and the Bubba Gump Shrimp Company.

3

4

According to a recent report from the Broadway League, Broadway theaters

of all sizes contributed over $12.6 billion on top of ticket sales to the New York

City economy. The same report found that Broadway supported more than

12,600 direct jobs and an estimated 74,500 indirect jobs in New York City.

All Broadway productions in New York City are unionized, and those who work

technicians, artisans

and crafts people

employed backstage,

as well as ushers, ticket

and house managers.

professional actors

and stage managers,

including those in

Broadway productions

in New York City.

instrumentalists,

vocalists, arrangers,

conductors, librarians,

teachers and coaches.

5

6

An increase in the number of tourists in New York City is a key contributor to Broadway’s

recent growth. As reported by NYC & Company, the city’s tourism promotion agency,

New York City welcomed a record 65.1 million visitors in 2018, the ninth consecutive

year of tourism growth. It is also likely that Broadway’s recent strength has served

to draw visitors to New York City, thereby bolstering local tourism levels.

Most visitors (79%) to the city are from the U.S., but the number of travelers from other

countries also continues to grow. In fact, New York City, with a 25.9% market share,

remains the #1 city destination for overseas visitors (i.e., excluding visitors from Mexico

and Canada) to the U.S., according to the U.S. Department of Commerce’s National

Industry analysts cite several important factors that have helped boost Broadway

recent years. “Premium pricing” has found large numbers of people willing to pay

high prices for the best seats at the hottest shows. In fact, the average paid admission

to a Broadway show rose by 59% between the 2008-09 and 2018-19 seasons (i.e.,

from $78 in 2008-09 to $124 in 2018-19). Looked at another way, the average paid

admission to a Broadway show increased more than three times faster than the

Consumer Price Index (All Urban Consumers), which increased by about 18% over this

10-year timespan, according to data published by the U.S. Bureau of Labor Statistics.

Drawing from lessons learned from their counterparts in the hotel and airline industries,

the producers of some Broadway shows use “dynamic pricing” (aka “surge pricing”) to

adjust their ticket prices hourly, depending on demand. Although the overall average paid

SUMMARY

asked the question, “Who

Killed Broadway?” That article

described live theater as

undergoing a crisis of relevance

in the world of more “lifelike”

about high ticket prices,

competition from more easily

accessible forms of entertainment

and an increasing reluctance

to buy tickets in advance.

But we can also say that Broadway

seems to be defying the cultural

odds: as an ancient art form in

the digital age, it is strengthening,

thanks to an ever-increasing

FOR FURTHER INFORMATION

should be directed to Jerey

Sorensen, Chief of the Bureau

of Labor Market Information.

He can be reached via email at

Jerey.Sorensen@labor.ny.gov

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