WEBVTT - Broadway May Not Be Back Until Early September 0:00:00.880 --> 0:00:04.520 This is Bloomberg Business Week with Carol Masser and Jason 0:00:04.640 --> 0:00:07.720 Kelly on Bloomberg Radio. All right, so, when we talk 0:00:07.760 --> 0:00:10.840 about how New York City has changed because of the virus, 0:00:10.840 --> 0:00:13.240 one of the areas where the change is rather stark 0:00:13.320 --> 0:00:15.760 is along the Great White Way Broadway in New York 0:00:15.760 --> 0:00:18.560 City's Fame Time Square area. It's home to, you know, 0:00:18.760 --> 0:00:21.760 so many theaters where millions typically flocked to every year 0:00:21.800 --> 0:00:23.919 to see shows. And while it doesn't happen often, it 0:00:24.040 --> 0:00:26.759 is happening now. The theaters are dark and have been 0:00:26.840 --> 0:00:29.000 shut down like the rest of the city. Let's talk 0:00:29.040 --> 0:00:32.200 about that and how Broadway finds its way back post 0:00:32.200 --> 0:00:36.000 COVID nineteen. Charlotte st Martin is president of the Broadway League, 0:00:36.040 --> 0:00:38.879 and she joins us on the phone in New York City. Charlotte, 0:00:39.040 --> 0:00:41.440 nice to have you here with us. UM. First of all, 0:00:41.479 --> 0:00:44.680 I hope you're doing okay, your family, UM, and your team. 0:00:44.720 --> 0:00:49.040 I know it's a devastating time for so many it is, 0:00:49.240 --> 0:00:53.520 and fortunately everyone is well. Early on we had quite 0:00:53.520 --> 0:00:57.040 a few of our people affected with the virus, but 0:00:57.840 --> 0:01:01.200 with the exception of Terence McNally, I think everybody has 0:01:01.280 --> 0:01:06.280 made it so we feel great well, and that really 0:01:06.400 --> 0:01:10.560 was quite a moment, his passing and just the the 0:01:10.760 --> 0:01:15.200 reminder of just how how awful this is and and 0:01:15.319 --> 0:01:19.920 certainly felt widely among those of us who have patronized 0:01:19.959 --> 0:01:23.840 Broadway over the years. I mean, I have to ask you, Charlotte, 0:01:23.840 --> 0:01:26.560 just to to go back a little bit. What was 0:01:26.600 --> 0:01:29.720 it like sort of that moment where everything literally just 0:01:29.920 --> 0:01:36.240 sort of went dark. Well, it was probably more shocking 0:01:36.680 --> 0:01:41.640 than any business situation I've ever experienced, and I've experienced 0:01:41.680 --> 0:01:45.360 quite a few strange ones, but the fact that we 0:01:45.360 --> 0:01:48.520 were in the heat of our season. We were about 0:01:48.560 --> 0:01:53.440 to have sixteen shows open in the next four weeks 0:01:54.000 --> 0:01:57.760 when we closed that day. One was literally opening that night. 0:01:58.320 --> 0:02:02.920 So we saw the hopes in dreams of sixteen producers 0:02:02.960 --> 0:02:08.280 and all of the casts, uh, just throttled down into 0:02:08.480 --> 0:02:12.400 pure misery that day. And some of those shows may 0:02:12.440 --> 0:02:15.760 not ever make it back or won't be back for 0:02:15.880 --> 0:02:19.519 some time sometime. And of course, with the Tony Awards 0:02:19.639 --> 0:02:22.680 coming up, this was the heat of the Tony Awards 0:02:22.680 --> 0:02:26.920 selection of nominees, so none of those shows can be 0:02:27.040 --> 0:02:32.080 nominated at this point unless they do come back. Well, yeah, 0:02:32.200 --> 0:02:34.480 I mean, you know, it's a reminder right that these 0:02:34.520 --> 0:02:38.080 are you know, when you put together production, it's expensive. 0:02:38.120 --> 0:02:40.200 It's a lot of money up front, and I do 0:02:40.320 --> 0:02:43.440 think about, you know, financially, it's not easy for you 0:02:43.560 --> 0:02:46.000 to either to you know, kind of be on hold 0:02:46.080 --> 0:02:48.160 for a few months or even come back on the 0:02:48.160 --> 0:02:52.560 other side. Right Well, I mean Broadway is a risky 0:02:52.600 --> 0:02:56.160 business in the best of times, and we've certainly been 0:02:56.240 --> 0:03:00.680 experiencing the best of times in the last ten to 0:03:00.800 --> 0:03:05.560 fifteen years. But it's you know, one out of four 0:03:05.600 --> 0:03:09.919 shows recoups on their investment if we're really lucky. And 0:03:10.400 --> 0:03:14.960 these are very very expensive shows. A typical musical is 0:03:15.000 --> 0:03:18.840 at least fifteen million dollars, and certainly some go thirty 0:03:18.840 --> 0:03:22.120 five million, forty million. A typical play is three to 0:03:22.240 --> 0:03:25.840 five million. And the only way they recoup is filled 0:03:25.840 --> 0:03:29.239 those seats. And you know, you're looking at eight shows 0:03:29.280 --> 0:03:33.880 a week with anywhere from seven hundred to two thousand seats, 0:03:33.880 --> 0:03:37.200 so it takes a while just to recoup, not to 0:03:37.280 --> 0:03:42.680 mention making money, and then the unemployment and the people 0:03:42.720 --> 0:03:46.520 that have to put their careers on hold is just 0:03:46.960 --> 0:03:50.040 so sad and so devastating, I have to say. And 0:03:50.240 --> 0:03:53.920 you know, I think Jason, you'll agree, and Charlotte. One 0:03:53.920 --> 0:03:56.280 of the things that made us realize, wow, this virus 0:03:56.440 --> 0:03:58.920 going back to March was going to whole other level. 0:03:58.920 --> 0:04:01.560 It was certainly when the sports franchises just said they 0:04:01.560 --> 0:04:03.640 were shutting down and then to see that, you know, 0:04:03.880 --> 0:04:06.560 Broadway was just shutting down completely, because these are things 0:04:06.640 --> 0:04:10.560 that just are open through almost every crisis that we've 0:04:10.600 --> 0:04:14.680 seen in the past. Um I do wonder too about 0:04:15.200 --> 0:04:17.800 workers within the theater, and I think you know, we've 0:04:17.800 --> 0:04:20.159 been trying to educate our audience to um or at 0:04:20.240 --> 0:04:22.680 least provide information when it comes to restaurants, like you 0:04:22.720 --> 0:04:24.400 know that there's not a lot of safety nets there 0:04:24.440 --> 0:04:29.560 when things like this happen. What about within the theater industry, Well, 0:04:29.600 --> 0:04:32.440 it's very much the same way. I mean, you certainly 0:04:32.480 --> 0:04:37.360 have your stars that uh do film and television and 0:04:37.680 --> 0:04:41.359 do theater because they either started out in theater or 0:04:41.480 --> 0:04:44.479 it is their passion. But most of the people that 0:04:44.600 --> 0:04:48.280 work on Broadway and that work for Broadway, they work 0:04:48.360 --> 0:04:52.080 there because it's their passion. They almost can't do anything 0:04:52.120 --> 0:04:55.839 else because their passion is so strong. And that goes 0:04:55.880 --> 0:04:58.480 all the way to producers. I mean, most of these 0:04:58.520 --> 0:05:02.360 shows take six eight years to just bring to life, 0:05:02.480 --> 0:05:06.000 and the blood, sweat and tears that goes into making 0:05:06.040 --> 0:05:10.960 these shows, and all of the designers and people involved 0:05:11.520 --> 0:05:16.119 while they're making it are all shut down at once. 0:05:17.240 --> 0:05:20.640 Even after nine eleven, I think Broadway was only closed 0:05:20.680 --> 0:05:26.360 for three days, and this will be at least six months, 0:05:26.400 --> 0:05:30.200 six months. That's so, that's the soonest that it comes back, right, 0:05:30.360 --> 0:05:34.039 I mean we closed March twelve. We're talking about refunds 0:05:34.040 --> 0:05:38.039 and exchanges through September six, so in one more week 0:05:38.560 --> 0:05:42.760 that would be six months, and there's absolutely no guarantee 0:05:42.800 --> 0:05:45.680 that will be back on September six. I mean, we 0:05:45.760 --> 0:05:49.800 are in the fourth phase of the governor's plan to reopen, 0:05:49.960 --> 0:05:52.920 and a lot of that will depend upon, you know, 0:05:53.040 --> 0:05:57.200 how all of the reopenings that he goes through with 0:05:57.279 --> 0:06:02.120 all the different stages, and also, honestly, what kind of 0:06:02.160 --> 0:06:05.600 medical treatments there are. I don't think we expect a 0:06:05.720 --> 0:06:10.039 vaccine by the fall, but there may be other things 0:06:10.080 --> 0:06:12.520 that make it easier for us to come back, but 0:06:12.600 --> 0:06:15.880 we don't know that yet. Right, there's still so many questions. 0:06:15.920 --> 0:06:17.919 We're going to come back there and continue that conversation 0:06:17.960 --> 0:06:20.359 because I am curious about some of the conversations you 0:06:20.400 --> 0:06:24.200 are having with UM public officials and others within your 0:06:24.240 --> 0:06:26.880 industry and maybe even in other industries to figure out 0:06:26.920 --> 0:06:29.200 how do you come back on the other side. I 0:06:29.200 --> 0:06:31.560 also know you bring theater around the country, so we'll 0:06:31.560 --> 0:06:35.159 get into that too, because certainly each state is experiencing 0:06:35.160 --> 0:06:37.880 this virus to some extent. Uh differently. All right, we're 0:06:37.880 --> 0:06:40.520 talking with Charlotte St. Martin, president of the Broadway League, 0:06:40.800 --> 0:06:42.920 on the phone in New York. Will continue that conversation 0:06:43.000 --> 0:06:46.120 in just a moment. Let's continue our conversation with Charlotte St. Martin, 0:06:46.160 --> 0:06:48.279 president of the Broadway League, joining us on the phone 0:06:48.520 --> 0:06:50.919 from New York City. And as I joked a little 0:06:50.920 --> 0:06:55.800 bit going into uh that last news update, Charlotte, I 0:06:55.839 --> 0:06:58.080 could tell from the moment you open your mouth that 0:06:58.160 --> 0:07:00.400 you are not a New York City Nate. If I 0:07:00.440 --> 0:07:04.400 can spot that lovely Texas accent from a mile away. 0:07:04.880 --> 0:07:07.640 I do want to ask you sort of what it 0:07:07.680 --> 0:07:10.680 looks like, what the theater business looks like beyond Broadway, 0:07:10.760 --> 0:07:14.120 because I know you're talking to people all around the country. Well, 0:07:14.160 --> 0:07:17.280 the Broadway League's members are in two hundred and forty 0:07:17.280 --> 0:07:22.080 two cities where the Broadway series take place. So yes, 0:07:22.240 --> 0:07:25.080 I talked to my colleagues in Dallas and Houston and 0:07:25.520 --> 0:07:29.840 San Antonio in Austin. But the other two hundred forty, right, 0:07:30.480 --> 0:07:33.360 you talked to them too. You don't just favor them, Yeah, 0:07:33.520 --> 0:07:36.720 I do, would just stay with Texas. Uh. And it's 0:07:36.960 --> 0:07:43.640 interesting there is talk of, uh, the touring market coming 0:07:43.640 --> 0:07:47.880 back a bit faster because there are locations where they 0:07:47.920 --> 0:07:51.400 haven't been as you know, as impacted as greatly as 0:07:51.760 --> 0:07:56.560 New York has. But like we're thinking potentially October November 0:07:56.680 --> 0:08:00.360 for the for the touring market to be up uh 0:08:00.400 --> 0:08:04.360 and beginning to to do their annual tours. And we 0:08:04.440 --> 0:08:08.560 do a lot of tours in this country. Hey, you know, Charlotte, 0:08:08.560 --> 0:08:11.400 one thing I'm wondering too, because man, we've all realized, 0:08:11.400 --> 0:08:13.120 I mean, here we are doing our four hour radio 0:08:13.120 --> 0:08:16.160 show that we normally do in this incredibly gorgeous studio 0:08:16.280 --> 0:08:19.320 back in our New York headquarters. And yet I'm at home, 0:08:19.480 --> 0:08:22.080 you know, sitting at a desk, and we're able to 0:08:22.120 --> 0:08:24.480 do this, And I do wonder. It's interesting as we've 0:08:24.480 --> 0:08:29.600 seen more musical acts go on line and do performances 0:08:29.640 --> 0:08:31.880 for people. My daughter's giving me heads up about something. 0:08:31.920 --> 0:08:34.040 Taylor Swift is going to do a concert or an 0:08:34.040 --> 0:08:36.280 old concert and they're gonna put it online. Do you 0:08:36.280 --> 0:08:39.200 guys think about I know there's nothing like being a 0:08:39.200 --> 0:08:42.520 Broadway being in a Broadway theater and seeing a production, 0:08:42.840 --> 0:08:44.840 but I do wonder if you start to think about 0:08:45.440 --> 0:08:51.200 doing something online where people can pay and and see performances. 0:08:52.880 --> 0:08:58.600 We just haven't adopted that method yet. It's a completely 0:08:58.760 --> 0:09:03.640 different financial model. That would basically means starting over with 0:09:03.720 --> 0:09:09.400 all of our seventeen union contracts, so that that's a 0:09:09.520 --> 0:09:13.800 significant effort. Now I can't say we will never do it. 0:09:14.160 --> 0:09:18.280 We also have a number of producers who feel very 0:09:18.360 --> 0:09:22.840 passionately about the fact that yes, it's good to see 0:09:22.840 --> 0:09:26.280 it if you on air or online if you can't 0:09:26.320 --> 0:09:29.280 see it any other way, but that there truly is 0:09:29.360 --> 0:09:34.079 nothing like the live experience, sharing the emotional closeness with 0:09:34.480 --> 0:09:37.760 the other people in the audience. And for so many 0:09:37.880 --> 0:09:39.920 it's escape. You can't get up and go get a 0:09:39.920 --> 0:09:43.520 cup of coffee or take a phone call or whatever. 0:09:43.600 --> 0:09:46.840 And I think that's part of what makes theater special. 0:09:47.200 --> 0:09:50.240 Is it truly is an escape, whether it's a funny 0:09:50.400 --> 0:09:54.360 escape or a happy escape. Or even drowning yourself in 0:09:54.880 --> 0:09:59.280 a tragedy. It is escape from whatever you left outside 0:09:59.280 --> 0:10:02.920 the door of that theater. So if if the emails 0:10:02.960 --> 0:10:08.360 and texts and uh tweets that we're getting are any indication, 0:10:08.880 --> 0:10:11.080 I have a feeling people will be lined up to 0:10:11.120 --> 0:10:14.600 get back to theater once they know it. And so 0:10:15.480 --> 0:10:18.000 what are the what is this sort of the interim 0:10:18.040 --> 0:10:19.959 step look like, because obviously we're all looking forward to 0:10:20.000 --> 0:10:22.800 a day where you know, we've got this totally under 0:10:22.800 --> 0:10:25.800 control and there's a vaccine and people feel safe sort 0:10:25.800 --> 0:10:30.360 of sitting next to a stranger. Is there a middle step, Charlotte, 0:10:30.440 --> 0:10:33.520 or is this a business that really can't get back 0:10:33.559 --> 0:10:39.880 to anything resembling normal until there is a vaccine, either 0:10:39.960 --> 0:10:44.920 a vaccine or something medically or some products that make 0:10:45.400 --> 0:10:49.240 the danger seem significantly left. I mean, we're not a 0:10:49.280 --> 0:10:53.600 business that can socially distanced. And really, for the same 0:10:53.640 --> 0:10:58.559 reason that we can't do online streaming of our shows, 0:10:59.000 --> 0:11:03.680 we'd have to redo seventeen union contracts because it's not 0:11:04.160 --> 0:11:08.960 you can't have a audience. I've already explained that Broadway 0:11:09.040 --> 0:11:12.520 is a very risky business, and you know, one of 0:11:12.520 --> 0:11:20.640 our bigger producers socially distanced his theater on in concept 0:11:21.040 --> 0:11:25.800 and he could get of the audience he used to get, 0:11:25.840 --> 0:11:29.960 and that was not anywhere going to even cover the 0:11:30.040 --> 0:11:34.760 weekly running costs. So unless a whole new financial model 0:11:34.840 --> 0:11:38.720 is developed, and that's not only employee wages, it's theater rent, 0:11:39.280 --> 0:11:43.760 is design fees, it's all of the things that make 0:11:43.840 --> 0:11:48.679 up Broadway. They're eighty different careers that make a Broadway 0:11:48.679 --> 0:11:52.760 show happen. People think of actors and ushers, they don't 0:11:52.800 --> 0:11:56.400 think about all of the other people that put on 0:11:56.480 --> 0:12:00.600 a Broadway show. But our theatrical and ployees are the 0:12:00.640 --> 0:12:03.360 best in the world. But they're also the most expensive, 0:12:03.880 --> 0:12:06.720 and we would have to find a way to make 0:12:06.800 --> 0:12:11.760 that happen uh differently. So we just need our theaters 0:12:11.800 --> 0:12:15.000 to get back up full or at least almost full 0:12:15.120 --> 0:12:19.040 with those sharing audiences. You did say eighty three different careers, 0:12:19.080 --> 0:12:22.960 Is that correct? That is wow? Yeah, it's it's massive. 0:12:23.000 --> 0:12:25.160 I have to say, having seen Hamilton's and To Kill 0:12:25.200 --> 0:12:29.080 a Mockingbird in the last year or so, um, it's 0:12:29.120 --> 0:12:31.640 just there's nothing like it. I totally agree with you, 0:12:31.800 --> 0:12:34.920 and it's I I look forward to things getting back 0:12:34.960 --> 0:12:37.800 to normal, if only for for so many reasons, but 0:12:37.840 --> 0:12:39.800 also to be able to go back, uh and see 0:12:39.840 --> 0:12:42.040 a Broadway show. Charlotte, thank you so much. We wish 0:12:42.120 --> 0:12:44.240 you well and hopefully we can check in with you again. 0:12:44.320 --> 0:12:47.400 Charlotte Say Martin, she's president of the Broadway League, joining 0:12:47.480 --> 0:12:49.640 us on the phone in New York City. I mean, 0:12:49.679 --> 0:12:51.920 it's tough. It is tough, Jason. This is not one 0:12:51.920 --> 0:12:54.319 of those things that you can do. Partially. Yeah, I 0:12:54.960 --> 0:12:57.880 was really interested in that, and I really appreciate and 0:12:57.880 --> 0:13:00.319 I think you do to her candor on that, because 0:13:00.360 --> 0:13:02.640 there wasn't a sort of like, well we'll see and 0:13:02.720 --> 0:13:06.319 we're we're sort of, you know, experimenting with some things. 0:13:06.440 --> 0:13:09.560 She is realistic about the fact that the model as 0:13:09.600 --> 0:13:12.640 it is currently created and as it will be for 0:13:12.760 --> 0:13:16.960 the foreseeable future, will not be socially distanced. We call 0:13:17.080 --> 0:13:19.800 this simple, we call this week reality check, right, and 0:13:20.240 --> 0:13:21.280 it was very realistic.