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The Business Of The Arts

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By DAVE SIMANOFF | The Tampa Tribune

Published: December 8, 2007

TAMPA - One was the hottest theaterticket in the Tampa Bay area.

The other was a ticket to a show about hot flashes.

You'd be hard-pressed to find two bigger hits - and two more contrasting shows - at the Tampa Bay Performing Arts Center this year than "Wicked" and "Menopause the Musical."

The shows couldn't be any more dissimilar: One is a lavish Broadway spectacle meant to appeal to anyone who has ever seen "The Wizard of Oz"; the other is a low-key comedy aimed squarely at women of a certain age willing to laugh about The Change.

Those differences make a profound financial impact for the nonprofit foundation that operates the performing arts center. A show like "Wicked" garners blockbuster buzz, commands high ticket prices and racks up massive sales in a short period. One like "Menopause the Musical" doesn't necessarily bring in as much money, but it gives the center opportunities for higher profit margins, repeat sales and word-of-mouth marketing over a much longer run.

People don't often associate business with the nonprofit arts world, but the schedule at the Tampa Bay Performing Arts Center exemplifies one of the fundamental rules of running any successful commercial enterprise: diversifying your products and services so you can reach as many customers as possible.

Business diversification is the reason bookstores don't carry only John Grisham novels, even though Grisham is a bestselling author. It's why McDonald's doesn't sell just hamburgers and fries, its most famous items.

Judy Lisi, president and CEO of the Tampa Bay Performing Arts Center, says the center's mission is to provide a diversity of programming.

"We do use solid business principles to make it happen," she said.

Lisi said the center needs ticket sales, attention and donations to support its programs, productions and educational efforts. To complement Broadway shows such as "Wicked," which are touring productions that use their own actors and crews, the center needs to produce its own shows using local actors and workers.

Even though the big shows might get more headlines and more time in the spotlight, "these little shows are our biggest income producer," Lisi said.

The center's average profit on a "Wicked" ticket was $2.62 during the first week of performances. The average profit on "Menopause the Musical" tickets was $5.43, more than twice as much.

'You Have To Be Entrepreneurial'

The center is operated by a nonprofit organization, so the earnings are used to subsidize performances and educational programs that may not make as much money, or that might operate at a loss, Lisi said. The exposure the center gets from the Broadway extravaganzas and the word-of-mouth marketing that's done for the smaller shows helps the center gain exposure, which helps sell tickets to future shows and builds goodwill in the community.

"We're helping people discover the arts," Lisi said.

Lisi said it's more important than ever for arts centers provide a diverse schedule because the arts, like many businesses, are competing against many other factors for people's time and money. People can choose to see movies or attend sporting events, for example.

"When people come here, they aren't coming for any tangible thing. They're coming here for a great experience," she said.

Frank Ghannadian, dean of the Sykes College of Business at the University of Tampa, said organizations in the arts are wise to offer diversity if they want to capture people's imaginations - and sell tickets.

People don't necessarily need to spend money on the arts - at least, not in the same way they need to spend money on food or housing or utilities, he said.

"You don't have to have arts, basically," he said. "It's an entertainment industry. There are a lot of substitutes so you have to be entrepreneurial. You have to create a market and differentiate."

Mahaffey Theater Seeks More Variety

Across the Bay, the Mahaffey Theater is managed a little differently from the Tampa Bay Performing Arts Center.

The Mahaffey is owned by the city of St. Petersburg and leased out to third-party promoters and show producers. It doesn't create any of its own programming so revenue from one show can't be used to subsidize another.

However, new Mahaffey general manager David Rovine said he also has an eye on diversification.

"This theater has not been known for offering a lot of rock and pop, and it's something we want to bring because our audience is asking for it," he said.

Rovine, like Lisi, said a wide selection of programs is the key to attracting a diverse audience that, in turn, raises a venue's profile and helps bring more programs and patrons.

"You do that by offering a wide variety of offerings that ultimately satisfy all the people in your marketplace," he said. "If you continue to do only one format of entertainment, you're going to drain that market and the audience will stop coming."

Reporter Dave Simanoff can be reached at (813) 259-7762 or dsimanoff@tampatrib.com.

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