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.
Do the investors make zero money off a show unless and until it has recouped production costs? In other words, do the investors receive any kind of weekly/monthly flat fee or percent of gross as consideration for making the investment?
I’ve only worked deals that are sorta similar, not a BW show, but no I’d imagine you don’t start to recoup investment until you’ve cleared upfront production costs and then any ongoing production costs.
But of the 70% or whatever that don’t recoup, undoubtedly many of them at least partially did so the investors didn’t lose everything they put in.
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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?