Joe Patti

Came across a press release about a study conducted on Gen Z and Millennial perceptions of Broadway. The provocative title suggested that Broadway wasn’t overpriced, but rather undervalued. According to the study’s sponsors, No Guarantees Productions, once people learn everything that goes into a Broadway production, the amount they are willing to pay increases.

While many of the study participants indicated they were cutting back on their spending due to economic uncertainty, they were open to spending on experiences shared with friends vs. things. This has been a trending sentiment across many studies, especially since the scaling down of pandemic restrictions. These experiences are perceived to provide a greater emotional return on investment than purchasing things affords.

The study includes direct responses from participants and really illustrated the amount of thought people were putting into curating these experiences for others. Some people were thinking about the music a friend/family member liked, others wanted to take friends to their first Broadway show and were thrilled to provide friends with their first theater attendance experience ever.

As seen in the chart below, the study used a number of prompts to determine how much people were willing to pay to see a Broadway show, then provided the context of the expense for a typical vacation trip, then provided the context of how much it cost to run a Broadway show each week. With the addition of each bit of context, the amount people were willing to pay increased from $141 to $286 to $512.

This does align with previous findings that people are more interested in purchasing goods or experiences if there is an engaging story associated with it.

While respondents said they would attend more frequently if the tickets cost less, about 63% said that discounted tickets made them suspect the show’s quality was low or the seats were bad for some reason. No Guarantees suggested that discounting didn’t necessarily make a show more attractive.

In fact, some people responded they would rather pay a little extra to ensure they would have an enjoyable experience:

One response type that was interesting to me was that the perception that Broadway shows run forever was resulting in a lack of urgency. I am sure it would dismay a lot of Broadway marketing teams to learn that it regardless of how much buzz they generate about the opening of a show, there are a lot of people who think they can always see it later.

No Guarantees suggests one solution for Broadway would be the creation of social clubs and locals-only events. One of the respondents said social clubs targeting her and her friends is what has gotten her to attend a number of events at Lincoln Center.

One thing to note is that most of the respondents were from the NYC area or tri-state region (NY, NJ, CT) with fewer from the national sphere. So many of them may have been plugged-in or at least highly aware of opportunities even if they indicated they didn’t attend frequently. While I imagine that people living in other parts of the US may have a similar perception of the value proposition and would be willing to pay more if they had similar context, the differing range of opportunities available and expectations about participation will likely impact the amount they would be willing to pay and degree to which they would engage.

Seth Godin made a post last week that aligns with the idea that it is easier and cheaper to retain a following rather than constantly trying to acquire new customers. Aubrey Bergauer will often post on social media about the issue of audience churn in the arts along these same lines.

Godin uses a slightly different, though very applicable, framing to illustrate his point

Obviously this doesn’t mean one should abandon efforts to better connect with a broader segment of ones community which are core to the purpose of arts and culture non-profits. Since the long time base of arts audiences are dwindling there is a need to add new people.

Godin notes in part of his post I didn’t quote that it is better to double down on those that agree with you and encourage them to bring their friends than to spend a lot of effort convincing those who oppose you.

There are often segments of the community who are inclined to attend, but haven’t yet. Activation efforts focused on existing fans can envelop them as well. I had someone stop me on the street a week or so ago to tell me how interesting an event promoted on a marquee poster looked and assured me he would bring his family to see it. They didn’t attend the event. However the fact that he was engaged enough to stop me on the street and tell me he viewed one of our programs as something he and his family would enjoy was an encouraging sign. I suspect we will see him and his family in our space before the summer is over.

Seth Godin had a recent post on the “knock, knock” promotional business model. The way he describes it put me in mind of the Field of Dreams “if you build it, they will come,” approach to advertising. Godin says this model works in cases where a movie or book is announced featuring a famous actor (or by a famous author).

The level of high anticipation creates a tension you can use to sell the product. You don’t have to share much of the content because people have already sold themselves on the idea.

However, he says there are offerings like those from cultural organizations that succeed better with a different approach.

He goes on to cite movies like The Rocky Horror Picture Show or songs that become anthems which only gain in influence as more people become familiar with them. He discusses the value of focusing on abundance and connection rather than scarcity. He admits it is a difficult process and perhaps not as well supported by research and evidence as people may like.