Newsies Closing

[ErinDillyFan]

Posted: 8/19/14 at 10:03am

I don't understand Disney. The show has never had less than 83% attendance, surely they are still making money with 85%+ houses. They closed the profitable BatB to make room for Tarzan. Obviously, they have the tour(s?) coming up and that might eat in to broadway sales.

Are tours more profitable than an established broadway show?
Is the broadway weekly nut over $700K and could really lose money at 85% attendance?

Help me understand the financial calculation at work...

[jnb9872]

Posted: 8/19/14 at 10:11am

It's cheaper to pack up a show and ship it on the road than build a second one while keeping the first one running. NEWSIES exceeded all its expectations and turned a healthy profit. And while you point out the audience capacity has been often above 85%, the potential gross lingered in the 60% range throughout the spring. Since Broadway shows usually see diminished returns over time, there's no shame in packing up shop before seeing week after week in the red and letting those losses trigger a closing notice.

[neonlightsxo]

Posted: 8/19/14 at 10:20am

I don't think anyone but Disney can completely answer this question, but I think one of the big reasons they're closing Newsies is to focus on Aladdin. They want those Newsies audiences to go to Aladdin.

(Also, BATB was for Little Mermaid at the Lunt. Tarzan was unrelated.)

[brdway411]

Posted: 8/19/14 at 1:32pm

Tarzan sucked anyway.

[FishermanBob]

Posted: 8/19/14 at 2:36pm

My belief is that those who wonder if it is still slightly profitable, why are they closing it, you are looking at the wrong things. How many posts were there this spring before Disney announced the closing that the show was losing steam, it wasn't as good as it was, it's not the same anymore, it's still good but definitely not great anymore, blah, blah, blah. If people on this board noticed it, don't you think Disney did as well?

Disney is not like any other producer. It had $45 billion in sales last year, $6.14 billion in profits. That's billion with a B kids. Do you really think they are sitting there wringing their hands over whether it loses $100,000 in a given week or could have made another $2 or 3 million if it ran another 6-9 months? $2 million is what they probably spend in a year on fresh fruit and water for the break rooms in their corporate offices and catering at their offsite meetings. What's the most important thing to Disney after profits??? Say it with me..... IMAGE. They don't want a show out there representing their brand that's slipped and is not what it was. They don't want tourists from Nebraska who they also count on to buy Disney products, plan vacations around their theme parks, go see their movies, having an experience seeing a show that has slipped and come away with a negative impression. Too big of a risk. They'd rather close it and bring in something else. THAT'S why Newsies is closing.

[Nateben2]

Posted: 8/19/14 at 2:45pm

Fisherman Bob is on tract, the following reasons I had heard . . .

1) Cost savings by set transferring to the tour.
2) Anticipated slow weeks in the fall, and perhaps long term to get back up to profitable weeks.
3) Small house size meant that it took longer time to make up for slower weeks.
4) Turn over rate and training costs of cast.
5) Focus on Aladdin, Hunchback, Muppets, Father of the Bride, Shakespeare in Love, and other future productions.
6) Back room rumored deal with Nederlanders to offer up a theater in exchange for future theater for future projects.

But it all rumors.

In reality, Newsies has always been a little bit of tangential show to Disney operations - but a huge success. Profitable, and they made a business decision to end on up note. They are the sole investor and producer - and why water down the brand by running a show into the ground . . . there is no point. They are already focused on the future.