It’s clear that the music of a Broadway production is a key selling tool for driving ticket sales.

The question to us really is what is the best way to get the music out to the general public?  And, in what context is it delivered.  Should it be seen as a revenue stream for the producers or as a marketing channel to help drive ticket sales for the production.  Personally, I’m not sure if you can have it both ways if you want to be truly effective at either one of those goals… but that’s open to debate.

To get better insight on the current state of the Broadway cast album, we sat down with Kurt Deutsch of Sh-k-boom Records.

(theSITUATION): What is the overall effect that the Internet has had on your industry?

(KURT DEUTSCH): What it’s done in a large picture is made music available to anybody anywhere in the world. Where you used to have to go to a store to buy a CD you can log onto iTunes.com or Amazon.com and find anything you could ever possibly want.

The downside is piracy. For a small company like mine, piracy is a killer. I have to fight for every sale. Cast albums and the solo albums that I produce don’t sell millions of copies so when someone gets them illegally, it hurts my ability to keep producing. To put it bluntly, if people want cast albums to keep getting recorded, they have to support the cause.

When my wife Sherie Rene Scott and I first started our company, the Internet was our sole method of distribution and promotion. We initially produced solo albums by Broadway stars like Adam Pascal, Alice Ripley and Sherie. As they were all performing in Broadway productions at the time of the album releases, we figured they were reaching upwards to 15,000 people a week, so we used their Playbill bios to promote their albums. Ultimately our initial sales from the Internet weren’t substantial enough to sustain a real business so we had to find real brick and mortar distribution as our catalogue grew, but in general online sales and promotion has had an enormous effect on our business on many levels.

(tS): What percentage of actual CDs are bought online?  What is the percentage of downloaded files (iTunes) versus actual CD’s?

(KD): I would say that about 7 to 10% of our sales are from digital downloads. Because we make cast recordings that tell stories, most people are interested in the whole album. However, we do see interest in a lot of individual songs. iTunes has started something called iMix allowing a user to make the equivalent of a mix tape of all of their favorite Sh-K-Boom and Ghostlight songs. Something like that helps to promote the sale of individual songs over complete albums. We’ve used that technology to our advantage as well, creating audition song iMixes for men and women–encouraging aspiring performers to use the music of our recordings in audition settings. It’s a great tool that could lead to more single tracks being downloaded.

(tS): What are some opportunities you currently see being missed in the market place in how shows are marketing their cast albums?

(KD): First of all, let me say that I think that an original cast recording is one of the biggest marketing tools for a show, period. Unfortunately, because for so long the show producers and the record labels didn’t work together in many the albums, there were many missed opportunities.

Our business model is very different. When we make a cast album, we work in partnership with the producers to try to make the music more available to them to help sell the show.

As more Broadway shows look to online advertising, using music will become more prominent as well. Flash banner ads with built-in music players allow potential ticket buyers to sample songs, which could prove to be an invaluable resource. Imagine if print ads in the Sunday NY Times offered producers such robust ways to sell their show to the public.

I also think there are many other ways we can use music to help promote shows with viral marketing on sites like myspace.com or with online clubs and search engines. If word-of-mouth is the best way to sell a show, there is no better word-of-mouth than saying, “I loved this show and you will, too–listen to the music!” with e-cards featuring built-in music players or CD-ROM samplers (the “ROM” part being important as a CD that won’t send a user to a ticketing site is worthless).

Or look at what we did with “Dirty Rotten Scoundrels” to promote their cast album–we worked with the producers and literally GAVE OUT 50,000 free CDs to ticket buyers. The CD was built into the ticket price and it helped promote the show and promote the CD while creating a buzz that was palpable.

(tS): Out of the major online distribution channels, iTunes is by far the biggest for the music industry as a whole. Have they been proactive in trying to push theatrical cast albums or is just another category to them? In other words, how responsive have they been to your requests?

(KD): Not very. Broadway is small potatoes to them. I think we just have to keep fighting the fight. In this business, you have to pay for visibility, price and positioning. The best part about iTunes and Amazon is the search engine functionality (i.e. “If you like this, you might like THIS”). I think that really helps open the door to a new audience.

(tS): Any words of wisdom to producers right now currently planning a cast recording?

(KD): I think my biggest word of advice would be to make sure the capitalization of a cast album is part of our overall budget from the time you first start raising money for a show. Don’t make it an afterthought. Start working from the beginning with a producing and distribution team so that once you’re up and running, you can use the music to help sell your show.

We have seen show websites generate thousands of group sales leads.  The tricky part is converting those leads into actual purchases.  There are so many variables to consider when trying to close a group order that every show must listen to closely to the group sales agents to hear what issues may be holding your show back from closing new sales.

Continuing the conversation on the current state of group sales, we spoke with TDI’s Janet Robinson to get some of her thoughts on questions we have relating to group sales.

(theSITUATION): How would you say the Internet has affected the group sales business?

(JANET ROBINSON): We get a lot of inquiries through the Internet.   As there are many questions, answers and detailed information that is required for a group sales order to be processed, we often have to communicate with the client by e-mail or telephone. It is rarely a simple transaction of just placing and filling an order. 

(tS): Is there a recipe for a type of show that will do well with group sales?

(JR): In general, musicals and comedies are most popular.  If we are selling to a student group (which is a very large component of group sales) a show that has some educational factor will often have great appeal.  Shows with stars and long running shows also have great appeal with tourist groups as they have proven the test of popular staying power.

(tS): Is there an ideal time that producers should start pushing forward with their group sales outreach?  Has this timeline changed over time (i.e., are people booking earlier, later, etc.)

(JR): As soon as a show has a definite opening date and a price scale, it is time to get the word out to groups (an actual theatre is not always necessary)   Student groups have the problem of not being able to pay for their orders if it is not within their actual calendar year but (other than that exception) it is never too early to advise groups about an upcoming show.  Some tourist groups are booking later than in the past. 

(tS): How important is the pricing strategy in group sales?  Do shows that go out with a steeper discount perform noticeably better?  Can it hurt you long term if you go with a steeper discount too early?

(JR): Many groups (particularly students and seniors) are price sensitive and will do much better with discount tickets than full prices tickets.  A big hit will still do well with full-price tickets but will see a big group increase when they begin to discount their tickets. Pre-opening discounts or “seasonal” discounts can be a great advantage to shows and should have no negative effect on the shows longevity if used judicially.

(tS): What’s on the horizon for group sales business?

(JR): We are certainly using the Internet as a marketing tool to a much greater degree than in the past.  We, of course, will continue to use traditional tools such as regular mail and advertising but, clearly, a much greater part of our client base is now coming through the internet.

Group sales are a critical component to the overall success of a Broadway production.  There are so many variables that play into a successful group sales strategy that we went straight to some of the key players in the group sales market to get their answers to some questions we had.

First up, Charlie Flateman from Telecharge.com.

(theSITUATION): How would you say the Internet has affected the group sales business? 

(CHARLIE FLATEMAN): As with every other product or service, the wide and nearly instant distribution of information through the internet has provided group leaders with much more information about the show they

What’s the one thing Broadway producers should think about most when planning to go on the road?

Is there a disconnect in how the tour and the Broadway production help each other on the marketing front?

Is there any particular type of advertising or marketing for the tour that is becoming more and more popular on the road?

We sat down with Anne Rippey of The Marketing Group to answer some questions on the current state of the touring market.

(theSITUATION): If there was one thing you could stress most to a Broadway producer that is planning to go on the road, what would that be?

(ANNE RIPPEY): I would stress the imperative of developing and distributing/posting the tour marketing materials early.  This allows the show to maintain the consistency and integrity of the brand, as well as meet the needs of and ensure better placement in local subscription brochures, season announcements, subscriber communications and group sales initiatives. 

(tS): It seems as though there is often a disconnect in how the tour and the Broadway production help each other on the marketing front.  True? 

(AR): The coordination and communication between the Broadway marketing team and the road press agent are critical to ensuring consistency in how the show is marketed.  Furthermore, promotional partnerships/programs will only be enhanced by leveraging them for both the Broadway company and the National Touring company, thereby giving them a national positioning.

(tS): Is there any particular type of advertising or marketing for the tour that is becoming more and more popular?  (i.e., email blasts, radio, direct mail, etc.) 

(AR): The trend is definitely towards online opportunities – whether eblasts, online promotions, online advertising buys, or even use of the local presenter’s website.  The better the show materials we provide, the more exposure the show will receive.  And beyond that, there is a look towards non-traditional web/interactive/mobile exposure, such as vodcasts, podcasts, mobile phone content, etc.

Some shows that have concurrent companies on Broadway and on National Tour are placing strategic national buys to help generate awareness in anticipation of its arrival in cities nationwide.

Here is a story
published in 1996 relating to online journalism ethics.  This is
over ten years old and it amazingly addresses many of the most
basic principles in journalism being questioned today.

The following is an excerpt from the article:

“Following those deeper and broader definitions of our
principles can certainly improve journalism as we know it today. And
it’s obvious that in the unlimited newshole of new media, we can
practice those values like never before.

So it’s tempting to say we’ll just transfer the values into cyberspace, and get on with it.

But it may be early to say that: online media can take us
and our readers to places journalism hasn’t been before. And in those
places, our values may be obstacles or antiques.”

What a prediction!

We sat down with Michael Hartman of Barlow Hartman Public Relations to get his take on the current state of Broadway publicity.

(theSITUATION): Has the change in the speed of information changed the way publications cover the theatre world?

(MICHAEL HARTMAN): The speed of information has
changed the way publications cover the theatre world as well as every
other area of interest.  When Tom Cruise and Katie Holmes
were married, People.com broke the story, not People Magazine. 
It

Publicity is one of the key drivers to Broadway ticket sales.  Good press could equate to big sales.  Bad press could be devastating.

Elements from your overall publicity live in Google, get spread through blogs, run on syndication networks and are ultimately read by millions.  They are talked about on message boards, chat rooms and make their way into every day

Publicity is one of the true market drivers for Broadway sales.

Variety and The New York Times have been two primary resources for covering both the art and business of Broadway.  To the Broadway community, their coverage has an incredible impact on our business for better or worse.  Furthermore, it

What is the number of people that attend Broadway theatre more than once a year?

What percentage of phone calls to Telecharge convert to ticket sales?

As the primary ticket selling agent for Broadway, Telecharge is one
of the few players in the industry that has a complete grasp on how
tickets for the entire industry are bought and sold.

We sat down with Jennifer Tattenbaum, E-Commerce Manager at
Telecharge.com, to help us get some insight on the state of Broadway
ticket buying patterns and what’s happening over at
Telecharge.com.  Please note that the answers to her questions are
just estimates based on a large sampling of shows.  These are not
exact figures so please don

We recently sat down with Paul Wontorek, Editor-in-Chief of Broadway.com, to discuss the topic of how the Internet has changed how arts and theater news is delivered to the general public.

Overseeing the creation and delivery of content that reaches millions of prospects on Broadway.com each year, we felt he would have some interesting insight to share with our readers.

SITUATION ROOM: How has the Internet changed the face of reporting on arts and theater?

PAUL WONTOREK: When we first started Broadway.com in early 2000, most theater news was fed to and released in the Friday New York Times theater column–the community lived and died by it. When we started to cover news on a 24/7 schedule, many publicists and producers found it threatening and couldn’t understand why we would want to challenge the system. Meanwhile, all we were really trying to do was make a name for ourselves as a credible journalistic outlet.

These days we’re playing in a very different ballgame. The Friday column is a distant memory and The New York Times has directed most of its attention onto the web. Even the once-exciting game of trying to be the first outlet with a news scoop has sort of ended for me as there are multiple copycat outlets that can steal and report stories without crediting sources or having to following the basic rules of journalism. If anything’s frustrating about the Internet is that it’s a bit of a Wild Wild West environment where anyone with a URL and a dream can call themselves a journalist.

Obviously, message boards have also changed the way news is released, but I think it’s dangerous for the theater community to think of the voice of a message board as the voice of the people. The core audience that these websites reach are already insiders or at least die-hard fans, who tend to see every show no matter what (most with comp tickets!). And that’s not even addressing the fact that the anonymity of such boards distorts the opinions contained within in the first place. With people working for productions (or for competing productions) posting under assumed names, how are we to believe anything? Don’t get me wrong–I understand that it’s all just fun and games, but to think of it as anything more useful is foolish, in my not-so-humble opinion.

SR: What would you guess are the most viral (passed along) stories on Broadway.com?

PW: Broadway.com has a unique audience of readers as we attract both the passionate theater fans looking for the latest news on their favorite star or show as well as far more casual theatergoers who are simply looking for a bit of direction in choosing a show to get tickets for. The most viral stories for the former group are things like Broadway casting news and the latest photo of the Norbert Leo Butzs and Idina Menzels of our world. For the ticket buyers, reviews are of unique interest, as are opening night video features and star interviews.

We’ve always promoted ticketing alongside our editorial and have seen how our features can help lead a reader into our ticketing section to make a purchase. We’ve also seen interest in many of the special sections that we’ve created in recent months (our current Lestat video blog, Valentine’s Day Special, Spring Preview 2006), which offer our readers unique content that is unavailable elsewhere on the web.

SR: We know the traditional theatergoer embraces Broadway news footage (i.e., b-roll, etc.) but what impact do you think this content has on the tourist market?  Does video footage from the production or cast members help convert prospects into ticket buyers?

PW: Sure. Who doesn’t want to see what they’re buying before they lay down their credit card? The last thing that a producer should cut costs on is b-roll. There have been some instances where we’ve received video footage from a multi-million dollar Broadway show that is saddled with poor audio, jumpy camerawork or boring editing, which is just a shame. What’s even better than just video clips of a show are smart and fun video features that offer users a chance to hear a show talked up by its stars or an inside look on the making of a production. I believe that’s the type of video content which appeals to both insiders and more casual theater fans and elevates general interest in the show.

SR: How does Broadway.com’s Audience Awards match up with the results of the Tony Awards?  Do they yield similar results?

PW: We started the Broadway.com Audience Awards in 2000 because we felt there was a need to honor the favorites of regular theatergoers. We are very clear to say that each of the winners are the “favorite” in the category rather than the “best.” Many of the winners do actually go along with the Tony Award results, but there is some variety. Last year, Dirty Rotten Scoundrels beat Spamalot for Favorite New Broadway Musical and actors like Christian Borle (Spamalot), Christian Slater (The Glass Menagerie) and Delta Burke (Steel Magnolias) found themselves winning in acting categories, despite not even earning nominations for Tonys.

What’s really fun about the Audience Awards are the categories honoring unique races like Favorite Ensemble Cast, Favorite Breakthrough Performance, Favorite Replacement, Favorite Song and Favorite Onstage Pair. I’m thrilled that the Tonys wised up and are giving out a replacement award, but what about ensemble casts? There’s always a deserving show in that race!

Once again, Broadway.com users will nominate their favorites for the 2005-06 Season in early May.

SR: What’s your general feeling on the quality of Broadway productions hitting the stage this spring?  Do you think the quality and range of productions make for a satisfying season for theatergoers?

PW: I’m a cock-eyed optimist when it comes to questions like this. Sure, there’s something for everyone out there. Insiders and critics can whisper about this or that, but “regular” theatergoers will ultimately choose a show for whatever reason, get engrossed in the community experience of live theater and rush home to tell their friends and family what they missed. I went to see Barefoot in the Park last week with a tourist-heavy Sunday matinee audience and they were howling and having a terrific time. So who cares what the critics thought? People definitely left satisfied. In fact, I’m sure you can find satisfied people walking out of any of the 15 new spring productions. If you want my personal take on the new line-up, it seems that all of the plays are coming from England and all of the musicals are coming from Blockbuster as always.

And if all else fails, we have Les Miserables and A Chorus Line on the horizon! Nothing like a familiar friend to keep audiences happy.

————-

Thank you Paul for your valuable time and insight.

So what is the real effect of the Broadway message boards? It’s always a topic of discussion so we went direct to the source to get an insiders take. We sat down with Robert Diamond, editor of BroadwayWorld.com which hosts one of Broadway’s most influential message boards, to get this thoughts.

SITUATION ROOM: How would you define the average Broadway World message board user?

ROBERT DIAMOND: I get asked this question a lot, and truly there is no definitive answer because our demographics range from a 15 year-old in Iowa, to multi-TONY winners straight through to senior citizens. With more than 5,000 messages being posted on a slow day, by over 40,000 registered users we definitely get a full range on the site, making it a true online community. Clearly, they all love theatre and the arts.

SR: What do you think is the effect that chat rooms have on Broadway shows?  Both good and bad chat.