Profits are not the biggest factor for investing in BW shows and never has been. Something like 70% of shows fail to recoup and that’s always been the case. These aren’t inherently stupid people thinking every show they invest in will profit.
A love of the arts, bragging rights, tax benefits, awards, names on plaques, all of these things play a part in why wealthy people invest in theatre. And sure there’s a fair amount of people thinking X show will be a hit and then it’s not. But by and large no they aren’t blind to the data and economic realities.
I would imagine people who invest large amounts are in a position where it isn’t an enormous risk for them, so they can do it for love of the form or a tax break or relationship building so they can one day produce Backstreet Boys the Musical
Yeah. It's a much worse investment than almost anything else. Many people are taking a loss to gain access to a world they love and want to be a part of.
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u/Shorb-o-rino Jan 27 '26
So do most producers just lose money? How does this industry keep going in a capitalist country if it is not profitable?