WEBVTT - Businessweek Extra- Charlotte St. Martin 0:00:02.520 --> 0:00:06.960 This is Bloomberg Business Week from Bloomberg Radio. I'm Jason 0:00:07.000 --> 0:00:09.440 Kelly and I'm Carol Masser. Welcome to the Bloomberg Business 0:00:09.480 --> 0:00:12.040 Week Extra. It's our weekly podcast bringing an in depth 0:00:12.080 --> 0:00:14.840 interview you will not hear anywhere else, and this was 0:00:14.880 --> 0:00:17.239 a big interview considering some of the news of the week. 0:00:17.360 --> 0:00:21.440 Jason absolutely the president of Broadway League, Charlotte st. Martin, 0:00:21.880 --> 0:00:24.360 you know Broadway. We had talked to her a little 0:00:24.360 --> 0:00:27.319 bit earlier in the pandemic. There was some hope that 0:00:27.360 --> 0:00:30.520 maybe later this year Broadway would get back. People would 0:00:30.560 --> 0:00:32.800 be back on stage, people would be back in the audiences. 0:00:33.000 --> 0:00:35.000 It's not gonna happen. We're not going to see Broadway 0:00:35.240 --> 0:00:39.360 until at the earliest, and we don't even know what 0:00:39.440 --> 0:00:43.240 it's going to look like that We've been watching everything 0:00:43.440 --> 0:00:48.720 from a medical and scientific way, and our the people 0:00:48.840 --> 0:00:52.240 we're working with and that we've hired have said we're 0:00:52.280 --> 0:00:55.400 cautiously optimistic about after the first of the year, but 0:00:55.520 --> 0:00:58.760 for now, there's just no way we can accomplish your goal, 0:00:59.160 --> 0:01:02.320 which is to make sure that the cast, the crew 0:01:02.480 --> 0:01:05.440 and the audience are all safe. So we won't be 0:01:05.520 --> 0:01:10.600 back until they can be and so talk to us 0:01:10.640 --> 0:01:14.240 about the the economics of this, Charlotte, because I mean, 0:01:14.240 --> 0:01:17.520 obviously there are economic considerations, and you talked with us 0:01:17.560 --> 0:01:20.560 about this the last time you're with us. Their economic 0:01:20.600 --> 0:01:25.919 considerations on a socially distanced performance that makes it virtually impossible, 0:01:26.080 --> 0:01:28.120 and you did a nice job of explaining that. But 0:01:28.520 --> 0:01:33.640 the economic implications of no Broadway are are massive, they 0:01:33.680 --> 0:01:36.959 really are, and not just for Broadway, but for all 0:01:37.000 --> 0:01:42.120 of the businesses that depend on Broadway. We either hire 0:01:42.240 --> 0:01:47.960 or are responsible for nine thousand jobs. That's the local restaurants, 0:01:48.000 --> 0:01:51.840 that's the retail stores in the area, that's the hotels, 0:01:52.120 --> 0:01:56.360 it's the museums and the vicinity, the parking garages, and 0:01:56.840 --> 0:01:59.240 they don't go back to work until Broadway goes back 0:01:59.280 --> 0:02:03.080 to work. So, uh, it's not just Broadway that's hurting, 0:02:03.160 --> 0:02:07.360 it's everybody that depends on Broadway. Yeah, I am curious 0:02:07.360 --> 0:02:09.520 some of the questions, you know, the conversations you guys 0:02:09.520 --> 0:02:11.320 are having, because it's you know, this comes in a 0:02:11.320 --> 0:02:14.240 week where we did talk to you know, someone who 0:02:14.320 --> 0:02:17.840 manages a family owned hotel down in downtown New York, 0:02:17.840 --> 0:02:19.880 and you know what they're doing, and I think Jason, 0:02:19.919 --> 0:02:23.000 they said something like twenty or thirty pc capacity, you know, 0:02:23.000 --> 0:02:24.960 and how they're doing things differently, and it is a 0:02:25.080 --> 0:02:28.440 very different experience in terms of shoes being cleaned and 0:02:28.480 --> 0:02:32.600 everything sanitized. There is there is just no way to 0:02:32.800 --> 0:02:37.680 do Broadway physically or financially right on a smaller scale 0:02:37.760 --> 0:02:41.840 of not really making the goal always filling as many 0:02:41.840 --> 0:02:48.000 seats as possible. That's correct. The We are a heavy, 0:02:48.160 --> 0:02:52.720 heavily unionized business and we have the best theatrical employees 0:02:52.720 --> 0:02:56.040 in the world, but they're also the most expensive, and 0:02:57.080 --> 0:03:01.040 the costs of Broadway continue to skyrocket because the world 0:03:01.080 --> 0:03:05.880 expects us to deliver the best of everything, the best sets, 0:03:06.040 --> 0:03:10.519 the best digital technology, as well as the best actors, 0:03:10.600 --> 0:03:16.720 and it's it's an expensive business to run the The 0:03:16.919 --> 0:03:20.440 history has shown that in the best years, one out 0:03:20.440 --> 0:03:23.760 of four shows recoups on its investment, and for the 0:03:23.840 --> 0:03:26.360 long run it's one out of five shows recoup on 0:03:26.360 --> 0:03:32.200 their investments. So, uh, significantly reduced audience just doesn't work. 0:03:32.760 --> 0:03:38.680 If if we open and have audiences of or less, 0:03:38.840 --> 0:03:41.880 Broadway won't work. So we have to make sure that 0:03:41.920 --> 0:03:45.720 when we open we have ticket sales to help keep 0:03:45.760 --> 0:03:48.720 the shows open, because it would be a disaster to 0:03:48.920 --> 0:03:51.440 have the shows open and then have to close three 0:03:51.480 --> 0:03:56.400 weeks later. Right, So, Charlotte, I wonder, because I know 0:03:56.440 --> 0:04:00.600 you're talking to producers and playwrights and all the folks 0:04:00.600 --> 0:04:03.480 who are on the creative side as well. I mean, 0:04:03.720 --> 0:04:07.880 what does this do for shows that were, you know, 0:04:07.960 --> 0:04:11.600 maybe not quite ready to go, but we're teed up 0:04:11.640 --> 0:04:13.760 to open in the second half of the year, or 0:04:13.800 --> 0:04:17.840 maybe some shows that that we're scheduled to open at 0:04:17.839 --> 0:04:20.600 the beginning of next year. Does everything get pushed? How 0:04:20.640 --> 0:04:24.239 many things just don't happen? What's your sense of how 0:04:24.240 --> 0:04:27.760 this sort of ripples through what we see when hopefully 0:04:27.800 --> 0:04:32.880 we are able to return to Broadway early next year. Well, 0:04:32.920 --> 0:04:37.159 I mean, fortunately, um, we have only had two shows 0:04:37.240 --> 0:04:42.120 that were too open right after we closed Broadway on 0:04:42.200 --> 0:04:46.800 March twelve, and one long running show, uh decide not 0:04:46.920 --> 0:04:48.800 to come back and that was frozen. And then there 0:04:48.839 --> 0:04:51.760 were the two that aren't going to be performing. But 0:04:52.400 --> 0:04:55.719 that leaves about thirty five shows that could be coming 0:04:55.760 --> 0:04:59.320 back when we reopen. And what happens is if they 0:04:59.360 --> 0:05:01.839 all come back, there won't be enough theaters for the 0:05:01.920 --> 0:05:05.560 shows that we're coming in because many of the shows 0:05:05.600 --> 0:05:08.920 on Broadway are what you call limited runs. They say, 0:05:08.920 --> 0:05:12.200 we're going to be running for twelve weeks or sixteen weeks. 0:05:12.240 --> 0:05:15.120 And if those shows do in fact come back, and 0:05:15.160 --> 0:05:18.240 we hope they do, then everything that was scheduled for 0:05:18.440 --> 0:05:22.120 January or the spring will be pushed back a bit. 0:05:22.760 --> 0:05:26.040 And we sure hope that all of those shows get 0:05:26.120 --> 0:05:29.440 to come back. Those people work four to six years, 0:05:29.480 --> 0:05:32.760 sometimes more to bring their show to Broadway, so we 0:05:32.800 --> 0:05:34.960 want them to have their day. I have to say 0:05:34.960 --> 0:05:36.720 I was kind of looking forward to it. I think 0:05:36.720 --> 0:05:38.320 it was going to be a limited run. Sara Disca 0:05:38.360 --> 0:05:41.440 Parker and Matthew Broderick. Right, they were just about to open, 0:05:41.520 --> 0:05:45.160 weren't they. They were, but they are scheduled to come 0:05:45.200 --> 0:05:48.240 back in the spring. Okay, that's good to hear local 0:05:48.279 --> 0:05:52.479 residents making good on their profits. Right, Yeah, exactly what happens? 0:05:52.600 --> 0:05:55.280 You know, I love you coming on because you do 0:05:55.360 --> 0:05:59.000 explain kind of the economics, um, and you know how 0:05:59.040 --> 0:06:01.920 Broadway works. What happens to all of those workers. You 0:06:01.960 --> 0:06:05.440 say it's heavily unionized. Do they have they been getting 0:06:05.640 --> 0:06:08.320 payments of some sort or are they getting money from 0:06:08.320 --> 0:06:10.839 the government? Like, how does it work? What happens to 0:06:10.839 --> 0:06:16.400 those workers. Well, when we shuddered, we paid the workers 0:06:16.400 --> 0:06:20.440 for two and a half weeks, and then healthcare was 0:06:20.520 --> 0:06:23.719 covered for longer than that, and many of the unions 0:06:23.839 --> 0:06:29.000 are getting healthcare coverage still, and many are getting unemployment insurance. 0:06:29.560 --> 0:06:35.039 But there's no question everyone on Broadway, producers, the people 0:06:35.080 --> 0:06:37.440 that work in the producer's office, the people that work 0:06:37.480 --> 0:06:42.640 in theaters, everyone is UH is experiencing difficulty. I mean 0:06:43.080 --> 0:06:47.840 most people think Broadway wow big business, big big corporations. 0:06:47.880 --> 0:06:53.039 Broadway is made up of hundreds of small little businesses 0:06:53.520 --> 0:06:56.839 that put everything they have to bring their show to Broadway. 0:06:57.040 --> 0:06:59.840 I mean, yes, you have Disney and a couple of 0:07:00.120 --> 0:07:04.039 the big shows that big companies that bring their shows 0:07:04.040 --> 0:07:09.000 to Broadway, but most are small, entrepreneurial businesses and they're 0:07:09.040 --> 0:07:13.320 all suffering as well as the actors and stage hands 0:07:13.360 --> 0:07:19.040 and designers. There's nothing good about this shutdown. And Charlotte, 0:07:19.040 --> 0:07:20.720 you know, one of the things we talked about the 0:07:20.800 --> 0:07:24.000 last time you were with us was you know, obviously 0:07:24.080 --> 0:07:27.800 you have UH a window into this through the touring 0:07:27.880 --> 0:07:31.920 companies as well. I mean, this is a national epidemic 0:07:32.040 --> 0:07:35.040 and we're seeing it really flare up in a lot 0:07:35.120 --> 0:07:37.480 of different places. I know, I believe if I remember, 0:07:37.520 --> 0:07:40.560 you hail from Dallas, so you understand all different parts 0:07:40.680 --> 0:07:44.560 of the of the country. How is the touring business 0:07:44.560 --> 0:07:47.120 looking amid all of this? Is it completely shut down 0:07:47.160 --> 0:07:52.080 as well? Are you seeing any movement there? Broadway tours 0:07:52.280 --> 0:07:55.080 are in two hundred and forty two cities around our 0:07:55.120 --> 0:08:02.760 country and they're all shuttered. The one slight glimmer of 0:08:02.840 --> 0:08:07.880 hope is many of the other markets where the Broadway 0:08:07.960 --> 0:08:11.320 shows two or two we're not as heavily hit by 0:08:11.320 --> 0:08:15.560 the virus. So there is some thought that some some 0:08:15.720 --> 0:08:18.120 of the cities can open up before the end of 0:08:18.160 --> 0:08:22.720 the year. And most of our cities are not as 0:08:22.760 --> 0:08:27.040 dependent on tourism as New York City is. They have subscribers, 0:08:27.080 --> 0:08:30.360 and subscribers are very loyal to their theater. I mean, 0:08:30.440 --> 0:08:33.720 I didn't miss a show at the Dallas Summer Musicals 0:08:33.800 --> 0:08:37.240 for as long as I could remember, because that's where 0:08:37.240 --> 0:08:40.040 I learned to love Broadway, and that's that's the way 0:08:40.080 --> 0:08:43.360 people are in many of the markets across the country. 0:08:43.440 --> 0:08:46.640 So hopefully we will get some of those people back 0:08:46.640 --> 0:08:49.160 to work before the end of the year. Do you 0:08:49.240 --> 0:08:51.959 see it as it's not until we get a vaccine 0:08:52.120 --> 0:08:55.559 or at least treatment modalities that can treat people who 0:08:55.640 --> 0:08:57.920 ultimately get the virus to keep you know, so that 0:08:57.960 --> 0:09:00.360 they they may get the virus, but they and take 0:09:00.480 --> 0:09:04.920 something that mitigates the symptoms and the outcomes. Is that 0:09:05.160 --> 0:09:08.960 is that what will ultimately open up Broadway Charlotte, Well, 0:09:09.600 --> 0:09:13.079 we do not believe that we have to have the 0:09:13.200 --> 0:09:15.920 vaccine to open It will be great to have it, 0:09:16.800 --> 0:09:19.719 but the medical professionals that we're working with say that 0:09:19.800 --> 0:09:25.920 many other protocols that are coming close to being real 0:09:26.760 --> 0:09:30.240 would allow us to come back. Certainly, the most critical 0:09:30.320 --> 0:09:34.400 thing for the cast and crew is the instant testing 0:09:34.800 --> 0:09:40.440 because there is no way that these performers can and 0:09:40.640 --> 0:09:44.480 stage hands and the people that work backstage can come 0:09:44.480 --> 0:09:47.920 back and we not be assured every single day that 0:09:48.000 --> 0:09:51.840 they're healthy. Because if you've never been in backstage of 0:09:51.840 --> 0:09:55.880 a Broadway theater, these are historic buildings that are spectacular, 0:09:55.920 --> 0:09:58.679 but they're not the biggest backstage areas you've ever seen. 0:09:59.320 --> 0:10:04.720 So uh, we have to have the testing that is reliable, 0:10:04.840 --> 0:10:08.479 and we're getting good indications that those will be available 0:10:08.520 --> 0:10:13.120 to us. Plus, there are protocols being developed all around 0:10:13.120 --> 0:10:17.000 the world that we're obviously watching and paying attention to 0:10:17.720 --> 0:10:23.800 at theaters of Global Community, and Broadway travels around the world, 0:10:23.880 --> 0:10:28.599 and the world travels to Broadway, so we're all sharing information, 0:10:28.880 --> 0:10:33.640 and our medical experts are telling us that, uh, they 0:10:33.679 --> 0:10:37.920 have cautious optimism that we can come back after the 0:10:37.960 --> 0:10:41.320 first of the year, not telling us exactly what, but 0:10:41.440 --> 0:10:45.760 after the first and uh, and we're hoping for that 0:10:45.800 --> 0:10:48.600 to be the case. As we all know, we find 0:10:48.640 --> 0:10:52.080 out new things about this virus. Seems like every week. 0:10:52.200 --> 0:10:56.240 Sometimes it's positive and sometimes it's not, so we're very 0:10:56.240 --> 0:10:59.920 dependent on the good news. Yeah, as you're as you're 0:11:00.040 --> 0:11:03.240 talking about backstage, and I'm thinking about, uh, that opening 0:11:03.280 --> 0:11:07.439 scene of of the movie Birdman Charlotte where they're sort 0:11:07.440 --> 0:11:09.760 of going through all those narrow little halls and he's 0:11:09.760 --> 0:11:12.240 squeezing past everybody. You're right, I mean, it's just one 0:11:12.240 --> 0:11:14.560 of these things. And we talk about sports in the 0:11:14.600 --> 0:11:16.520 same way, sort of the intimacy of it, and that's 0:11:16.520 --> 0:11:18.880 why we love it in many ways. I mean, I 0:11:18.920 --> 0:11:22.600 guess as you started out this conversation by talking about Charlotte, 0:11:22.640 --> 0:11:24.720 I wanted to ask you about New York City because 0:11:24.880 --> 0:11:28.079 we've been having so many conversations Carol and I have 0:11:28.120 --> 0:11:30.679 with so many guests about how the city may change 0:11:30.679 --> 0:11:32.960 on on the other side of this. And given that 0:11:33.040 --> 0:11:36.720 Broadway is so critical and as you say, so interconnected 0:11:37.120 --> 0:11:40.720 with that whole environment and so many different industries and 0:11:41.080 --> 0:11:43.760 little it's a little mini economy more than a mini economy, 0:11:43.840 --> 0:11:47.160 and economy into into itself unto itself, how do you 0:11:47.160 --> 0:11:49.040 think New York changes on the other side of this 0:11:49.200 --> 0:11:52.520 just only got about a minute left, sure, I mean, 0:11:52.600 --> 0:11:55.720 I do think it would be unrealistic of us to 0:11:55.800 --> 0:11:59.280 assume that Broadway and that New York City comes back 0:11:59.360 --> 0:12:03.640 full speed. I think we're anticipating that we will have 0:12:03.720 --> 0:12:08.840 to build up the tourism and the attendance at all 0:12:08.920 --> 0:12:12.800 things New York City. But we know that there's an 0:12:13.040 --> 0:12:16.520 enormous amount of demand for people to come back to 0:12:16.559 --> 0:12:19.520 New York and the longer we're closed, the more demand 0:12:19.600 --> 0:12:22.640 there will be. That was the president of the Broadway League, 0:12:22.679 --> 0:12:25.320 Charlotte st. Martin, and Jason. I'm not surprised. I remember 0:12:25.320 --> 0:12:28.480 our earlier conversation a month or so ago with her, 0:12:28.720 --> 0:12:31.560 and she was not hopeful, I mean her whole point. 0:12:31.600 --> 0:12:33.719 But how do you put all of these people in 0:12:33.800 --> 0:12:35.640 a Broadway theater. How do you keep them safe? How 0:12:35.679 --> 0:12:38.839 do you keep the people, the performers on the stage safe. 0:12:38.880 --> 0:12:41.360 I mean, it's really really difficult, and it's also a 0:12:41.360 --> 0:12:45.040 financial model that you really need full theaters for it 0:12:45.160 --> 0:12:47.280 to work. Well, that's exactly what I was gonna say. 0:12:47.320 --> 0:12:49.640 This is a health problem, but also an economic problem, 0:12:49.720 --> 0:12:53.080 as everything is with the virus and the response, and 0:12:53.480 --> 0:12:56.320 certainly that is coming to hear one Broadway. You've been 0:12:56.320 --> 0:12:58.760 listening to Bloomberg Business Week Extra, because sure to tune 0:12:58.760 --> 0:13:01.160 into Bloomberg Business Week Were you Live? Monday through Friday 0:13:01.160 --> 0:13:03.559 at g PM, Wall Street Time, Pom Bloomberg Radio. I'm 0:13:03.600 --> 0:13:06.359 Carol Masser and I'm Jason Kelly. This is Bloomberg