Crunching the Theatre
Friday, October 31st, 2008Earlier this week I was contacted by a BBC Radio station and asked if the credit crunch is affecting theatre. I had to admit that I didn’t know. I had heard things but they were - at least - secondhand so I didn’t feel justified in making more than the vaguest of comments. However I did decide to investigate further.
I have heard it said that the number of West End shows which have announced closure recently is proof that the crunch is having an effect (and certainly the media seem to be taking this line), but shows are always closing for one reason or another and sometimes it does seem to happen in clumps. And when we look at those which have closed or are about to close, we see that some have reached the end of their planned runs, others have been panned by the critics and one was unable to persuade its cast to take a cut in pay when moving to a smaller venue. Hardly evidence of a major downturn.
In fact, SOLT and those producers who have commented have been very bullish. Nica Burns of Nimax Theatres was a little cautious, suggesting that theatre is bound to be affected in the coming months but insisting that the autumn season has been good.
I decided to take a sample of North East theatres - a 1,300-seater receiving house, a 400-seater receiving house and a producing/receiving house with two auditoria.
Philip Bernays of Newcastle’s Theatre Royal said, “We are currently on target in terms of audience figures and Box Office income, but we are reaching these targets slightly later than we usually do as people are booking later.
“We are generally not putting prices up in 2009 as we recognise that people are being cautious with the amount of money they have to spend, and are concerned that, from the Spring when there may well be a squeeze on pay rises, the situation will get tougher. Of course, not putting up prices whilst our own costs rise is also going to create pressure on our budgets.”
Peter Darrant of the Customs House in South Shields agreed. He said that last minute booking had increased greatly and walk-ups (people paying at the box office on the night rather than booking in advance) were up 100%. A children’s show this week had 60 walk-ups for one performance and 54 for another - a most unusual situation. In fact, advance booking patterns have changed. For example, a recent mail-out three days before one show brought in 100 bookings rather than the usual ten.
Group bookings, too, are down, as are school bookings for the panto, but - and this is the significant thing - actual attendance is up. He believes that people are less willing to commit to spending in advance, but are still turning up.
The Customs House, he believes, is lucky in that the bulk of its audience tends to be retired people - “Kids gone, income secure, mortgage paid” - but still he thinks all theatres are going to have to change their marketing strategies to deal with the new situation. And, of course, things will change once the recession begins to bite.
Northern Stage reports no change in booking patterns. In fact, their spring production of Look Back in Anger is selling well, as are the two children’s Christmas shows.
The theatre’s spokesman suggested perhaps the credit crunch and impending recession had not hit the north as badly as the south (and, in particular, the south east) - yet. He expects Northern Stage to feel the effects in the new year.
The situation in this part of the country, then, is not too bad, but theatres are bracing themselves for a downturn but, instead of throwing up their hands in despair, they are, as Peter Darrant said, preparing to adapt their marketing strategies to the changing conditions.