I have had the pleasure of producing or investing in about 160 shows on Broadway , the West End, and national/international tours over 20 years. In the midst of that time, I decided to branch out and also do independent film. Several investors have asked to have a better understanding of what the similarities and differences are. That could be a very long article , but here are some of the most significant ones.
The End Goal —In film, the creatives are striving to create the best possible film which can be seen forever in its final cut. While shooting, they can use as many takes as they need in each scene to capture what they view as the essence. In theater, the end result is a living breathing show on stage which changes every night. Cast interactions and audience reactions to the show can vary tremendously from night to night. The show is “frozen” a few days before opening. It is a thrill seeing live actors on stage. Audiences often go back many times ( on the closing night of Spring Awakening, I was seated in a row of high school age fans many of whom had seen the show over 100 times! ) .
Process—Film producers purchase the rights to already written source material or commission an original script. Once they have the creative team, the crew, the locations, props and cast, etc. all in place, the actual filming usually takes less than month for an independent film. There is a day to day schedule of twelve hour days which lays out the exact order of scenes in the most efficient way possible. There is rehearsal beforehand, but relatively minimal, and the Director makes suggestions right on set. Theater can take many years in the development process, especially for new musicals. Usually there is a a decision made to test the show out before Broadway via an out of town trial, non-profit, workshop or extended reading. Broadway theaters are difficult to obtain, but once that has happened , there is a rehearsal time of possibly 4 weeks , a tech time in the theater and changes being made then plus during previews. There have been many transfers between Broadway and the West End, with the West End budgets significantly less expensive.
Locations—Films scout out ahead of time the locations that are best for depicting scenes. The goal is to provide cinematic surroundings, while also not having too many which drives up costs. The cast and crew obviously need to move to each new location together, which takes time. Theater builds sets on the stage and the choice can be made between very minimalist to quite a spectacle.
Cast—Films can have much larger casts because of not being limited to a stage. Theater has been discovering the need for celebrity actors to a much greater degree to drive sales.
Producers—Both theater and film typically have between 1-4 lead producers who are the ultimate decision makers for the script, all creative hires, all department heads and of course raising the funds necessary. Underneath film lead producers are Executive Producers ( often advisory role), co-producers and associate producers. Each commits to a fund raising amount to receive that credit, and often gain “ points”, which are a portion of the lead producer’s profits. Note that actors and others also receive points. In theater, the same credits apply, but the lead producer has an entitlement chart which specifies the range of funds raised to qualify for the credit and the “terms” the co-producers receive. The are expressed in language such as 1 for 3 terms, meaning once the show is in profit , for every $3 the lead producer makes , the co-producer receives $1 out of the pool for the lead producers.
Distributions— In film, investors receive their full investment plus a 10-20% premium back before there is a split of profit between the producer pool and investor pool, usually 50/50. In theater, again the investors receive their full investment back first , although without a premium. Then there is a split between investors and producers, usually 50/50 again, but in the UK, sometimes 60/40.
Controlling Costs and Scheduling —in film, a crucial position is the line producer/Unit Production Manager. That person(s) is responsible for the budget, payroll, day to day schedule, monitoring expenses and overtime, reacting to whatever comes up every day. In theater, a General Manager office is hired and is equally important to financial oversight and consultant input with a broad latitude. All the contracts are maintained by these people , plus a lot of the communication outward and many control issues. The General Manager is brought on several months before the first trial production or Broadway run and usually continues through subsequent productions.
Long Term Revenue Stream —In film, you receive revenue from a theatrical release ( if there is one) , but more importantly through the payment from the distributor, and the platforms or streamers that pick up the film. International sales can be a very large element and are frequently done country by country with international sales agents. In Broadway, you may decide to have a West End transfer, a national tour, or specific buyout from particular countries. At some point in the spectrum of the show, it is licensed out for schools, smaller theaters and amateur productions, which can run for years and years. Shows are paying attention to making themselves scalable for that long stream of licensing revenue.
Role of Director —In film, the Director is preparing his vision for the show, plus his location sequence quite ahead of time. The Director is obviously right in the action each day and can make instant new decisions on a scene . In theater, there is usually a 3-4 week rehearsal process, followed by previews of 3 weeks where notes are taken each day and incorporated into a revised script. In each case, the Director is involved in the casting and of course in suggestions for the actors individually and in group interaction.
Importance of Crew—in film , the cinematographer is absolutely crucial and can make all the difference in the beauty of the film . The supporting crew on set with the Director and cinematographer must be reliable, efficient and be able to work quickly under a stressful environment. In theater, the crew is also critical but is more in the background each night. The production stage manager controls the stage, and lighting and sound enhance the production enormously.
Distribution versus a Theater House—in film, the producers are looking for a distributor to take on the film and generate maximum sales, both domestically and internationally. Sometimes the film applies to be in multiple festivals to showcase its merit. In theater, the show is looking for approval to do the show in a particular Broadway house. There is tremendous demand for a limited number of theaters. The producer pays the theater owner rent for the house.
Length of Run/Viewing—Once a film is completed, you can watch forever once it is on platform(s). Theater runs depend on whether it is a play or a musical , and a new work versus a revival. Plays typically run 3-6- months , but occasionally one is so successful that it can play for 1-2 years. New musicals are open-ended and continue as long as sales warrant. We all know the classic musicals that have run for decades. Musical revivals are also usually open-ended but since they are a re-imagined depiction of a well-known show, the length of run is 1-2 years most often.
Music—Films hire a composer for a score or can license existing music. Theaters have an orchestra every night playing music written by one of many wonderful composers. The composer sometimes does the lyrics too, or otherwise there is a separate lyricist.
Marketing—This is one of the biggest differences between films and shows. Pre-opening night marketing can be a very large figure for feature movies of a certain size and star power. The media used for marketing can vary. Broadway has a tighter budget and develops plans across many options, and is more reliant on social media.
This is already a long article and there are so many details unmentioned behind the broad brush summaries. I’d be happy to establish relationships where I guide you through film or theater investing. I have a seemingly unprecedented rate of 60% of the 160 theater shows making a profit. You can also review these sites:
