Giving the ol’ razzle dazzle should pay off
July 21st, 2007The backers of musical theatre productions are spending big on four new shows to reach Melbourne audiences. But can they all make a profit? Reid Sexton reports.
IN THE next year, Melbourne will go from a musical famine to a musical feast.
Including Phantom of the Opera, four musical behemoths will take up residence.
The private and public investment in the shows is estimated at tens of millions of dollars and the four productions will create one of the busiest times in Melbourne’s theatrical history plus spin-off benefits to the economy.
For some of the producers, the rewards will be large. But whether every show can be a financial winner remains to be seen.
Phantom is likely to replay its critical and perhaps its financial success with its new run, which began on Thursday.
By the time it closed in Melbourne in 1993 after a 2-year run, it had grossed $300 million. And while it is playing for a strictly limited season this time around, the Sir Andrew Lloyd Webber production is expected to again dazzle at the Princess Theatre.
The producers won’t reveal any detailed financial information but do say the Melbourne show attracted “several million dollars” of private investment from Melbourne, New York, Korea and South Africa. Already about $12 million worth of tickets have been sold a figure that comes as no surprise to at least one industry observer.
Professor Anne-Marie Hede from Victoria University says the show’s timing is perfect.
“There will be people who are trying to engage in this nostalgic experience of ‘let’s go back’,” she says. “But there’ll be a new market that’s curiously interested in Phantom. It should be a big success.”
And big successes equal big money, and not just for investors.
The Victorian Major Events Company, which convinced the Phantom producers to return to Melbourne, says hotels, restaurants and taxis all reap spin-off rewards from big shows. That is why they flew a team of three to New York for successful negotiations with the producers of record-breaking Broadway show Wicked, which is due here next year.
They fought equally hard for Monty Python’s Spamalot, which starts in November at Her Majesty’s Theatre.
The Lion King which played from July 2005 until its close on June 4, 2006 at The Regent Theatre brought $93 million to Victorian business from interstate or overseas.
The Melbourne run of The Producers generated $28 million in economic benefits.
Victorian Major Events Company chief executive Peter Abraam says it is too early to assess the economic impact of Phantom or the recently closed Miss Saigon, but both shows are certain to have boosted the city’s economy.
The benefits aren’t always just financial. “There’s great cultural opportunities which benefit not only the precinct but are great in winter and provide a great atmosphere,” he says.
Veteran publicist Suzie Howie, who will handle media relations for the $18 million production of Wicked when it opens next July, says the knock-on effects of big shows are well-known.
“You have to remember that when someone comes in to see a show, the theatre producer only makes whatever the ticket sales are,” she says. “The taxi drivers make money out of these shows, the hotels make money, the restaurants make money. The producer probably makes less than everyone but that’s fine.”
When Priscilla, Queen of the Desert opens in Melbourne this October, it will already be a success.
The show’s Sydney debut was so popular that the outlay of $6.5 million provided by investors including Mel Gibson’s business partner, Bruce Davey, and a French rock-concert promoter has already been recouped. The show will have grossed almost $40 million by the time it leaves Sydney and producer Garry Quinn believes that success will be repeated.
“All the indicators are incredibly positive for Melbourne,” he says “We are hoping for at least 300,000 sales we have already grossed $5 million, which is a little over 50,000 tickets.”
But with so many shows in town, can they all be winners?
Yes, according to Professor Hede, because successful theatre breeds a hunger for other shows.
“They are always going to be in competition that’s only natural,” she says. “But they can have a synergistic effect on each other. They create excitement and an interest in cultural events.”
Mr Quinn agrees. “Four big shows in 12 months; theoretically it’s possible they can all work,” he says.
“The bigger issues are the shows themselves because audiences are not silly. If the shows are good enough, they will invariably work.”
And if they’re not good, they lose money.

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