NEA Report on Non-Profit Theatres Reveals Straight Play Attendance Suffering

There has always been a lopsided balance when it comes to attendance regarding muscials versus straight plays, but in recent times the scale has dipped even sharper in favor of the musical production. At many of Broadway's most glowingly reviewed plays you'll find many an empty seat. A new report on the state of non-profit theatres nationwide sheds a bit of light on the topic while giving a very detailed report on the industry as well.

Nonprofit theaters in the United States have seen unprecedented expansion across the United States, according to new research from the National Endowment for the Arts. All America's a Stage examines developments in the growth, distribution, and finances of America's nonprofit theater system since 1990. While the research indicates broad growth and generally positive fiscal health, it also reveals decreasing attendance rates and vulnerability during economic downturns.

"America has created a magnificent national network of nonprofit theaters," said NEA Chairman Dana Gioia. "Our challenge now is to use them ambitiously to bring the power of theater to our citizens, students, and communities."

Nearly 2,000 nonprofit theaters were analyzed for the study, which draws from several data sources such as the Internal Revenue Service, Theater Communications Group member survey data, the U.S. Census Bureau's Economic Census Data, and data from the NEA's Survey of Public Participation in the Arts. The investigation revealed that NEA funding is a likely catalyst in drawing sizeable contributions from other sources. Each dollar in NEA grant support is associated with an additional $12 from individual donors, $1.88 from businesses, and $3.55 from foundations. Among the key findings:

The number of nonprofit theaters in the United States has doubled over a 15-year period. In 2005, there were 1,982 nonprofit theaters with annual budgets of at least $75,000, up 100 percent from 991 in 1990.
Among the top ten states with the highest per capita concentration of theaters are Vermont, Alaska, Montana, Oregon, Connecticut, and Minnesota.
Although theaters continue to cluster in high-population states, the number of theaters in small and mid-sized population states has grown substantially. From 1990 to 2005, the sharpest growth rate occurred in Nevada, Arkansas, Utah, Colorado, Idaho, and Mississippi.

Nonprofit theaters generally have maintained a healthy balance sheet. Between 1990 and 2005, real assets (such as land, buildings, and equipment) grew by nearly 60 percent, while liabilities remained flat.
Nonprofit theaters have achieved a more equitable balance between earned and contributed income. Earned income made up 52 percent of all nonprofit theater revenue in 2005, the remainder was mostly contributed.
Individuals and foundations remain the biggest contributors to nonprofit theater. In 2002, individuals donated 40 percent of all contributed revenue, and foundation giving made up 22 percent.
Between 1990 and 2005, nonprofit theater revenues fluctuated sharply with business cycles in the U.S. economy. After the 2001 recession, nonprofit theater revenue (including both ticket sales and contributions) dropped nearly 12 percent in 2002. Revenue continued to decrease slowly from 2002 to 2005.

Audience trends are flat or in decline. The percentage of the U.S. adult population attending non-musical theater has declined from 13.5 percent (25 million people) in 1992 to 9.4 percent (21 million people) in 2008. The absolute size of the audience has declined by 16 percent since 1992.
The number of adults who have attended musical theater has grown since 1992, but remains largely constant as a percentage of the population.
Attendance trends do not seem primarily related to ticket prices. Statistical models predict that a 20 percent price hike in low-end subscription or single tickets will reduce total attendance by only 2 percent. These data suggest that other facts are likely affecting the demand for theater.
NEA theater initiatives

The NEA plays a leadership role in promoting theater across the country. NEA direct grants support a range of theater projects, from education outreach for youth, to more than 100 new theatrical premieres each year. NEA National Initiatives also increase access to high quality theater. Launched in 2003, Shakespeare in American Communities has become the largest tour of Shakespeare in American history. Through the American Masterpieces initiative, 13 theater companies in 18 states are reviving and touring significant American musicals. Since 2004, NEA Arts Journalism Institutes have offered more than 250 journalists from all 50 states professional training programs on dance, theater, classical music, and opera. The NEA/TCG Career Development Program for Directors and Designers is a partnership with Theatre Communications Group (TCG), the national service organization for American theater. Since 1996, the program has provided mentorship to more than 130 early-career theater professionals. Most recently, the NEA launched the NEA New Play Development Program. Administered by Arena Stage, the program seeks to help the nation's nonprofit theaters bring more new plays to full production and raise interest in new plays among the general public.

Since 1976, the NEA Office of Research & Analysis has issues periodic research reports, brochures, and notes on significant topics affecting artists and arts organizations. The NEA has issued several reports on theater employment trends, audience attendance patterns, and the relationship between commercial and nonprofit theater. All America's a Stage, along with other NEA research, is available for download at http://www.nea.gov/research/.

The National Endowment for the Arts is a public agency dedicated to supporting excellence in the arts, both new and established; bringing the arts to all Americans; and providing leadership in arts education. Established by Congress in 1965 as an independent agency of the federal government, the Arts Endowment is the largest annual national funder of the arts, bringing great art to all 50 states, including rural areas, inner cities, and military bases.