Seven Theaters in Search of Revenue

How much should tickets to Saturday night’s show cost? Theaters weigh a number of concerns when deciding how to set admission prices. Revenue is important, of course: theaters price tickets at the highest level the market will bear. But theater is different from other goods, and finances are just one factor that influences pricing decisions. Capacity also matters a great deal: companies want full audiences as well as revenue-generating ones. They must balance the need to maximize revenue with the need to maximize audience. In addition, most arts organizations attempt to expand the breadth of their audiences by reaching out to groups that seldom attend the theater. Revenue, turnout, and audience diversity are all factors that theaters take into account when setting ticket prices. This case study examines the ways in which seven theaters from around the United States are capitalizing on high-demand shows while keeping programs accessible to all audiences. In order to achieve this balan