Motley Fool Money: Episode Summary – "The Business of Broadway"

Release Date: February 15, 2025

Introduction

In this episode of Motley Fool Money, hosted by Mary Long, the spotlight shines on the intricate and often unpredictable world of Broadway production. Mary engages in an enlightening conversation with Jill Furman, a seasoned Broadway producer renowned for her pivotal role in bringing Hamilton to the stage. The discussion delves deep into the multifaceted responsibilities of a Broadway producer, the challenges of financing theatrical productions, and the factors contributing to the monumental success of Hamilton. Through personal anecdotes and expert insights, listeners gain a comprehensive understanding of what it takes to transform artistic visions into commercially successful Broadway shows.

The Role of a Broadway Producer

Jill Furman opens the discussion by outlining the diverse responsibilities that come with being a Broadway producer. She emphasizes that producing is a balancing act between supporting artistic visions and ensuring financial viability.

Jill Furman [00:29]: "A Broadway producer wears many hats... We're responsible for literally everything. Developing it, raising money, overseeing the casting, the marketing, the advertising, making decisions about when we should close..."

She further encapsulates the essence of producing Broadway shows with a profound saying:

Jill Furman [02:40]: "Producing is the art of saying yes, judiciously and no, politely."

This statement underscores the delicate balance producers must maintain between nurturing creativity and making pragmatic business decisions.

From Idea to Production

Transitioning from the producer's role, Jill Furman explains the journey of transforming an artist's idea into a tangible Broadway production. She uses her recent show, Suffs, as a case study to illustrate this process.

Jill Furman [02:58]: "Every show has its own DNA... part of the producer's responsibility is to figure out what path makes the most sense for that particular show and that particular creative team."

She recounts the genesis of Suffs, highlighting the collaborative efforts and the timeline involved:

Jill Furman [05:44]: "We really believed in the story and the timing. It kept getting timelier. And then we brought it to Broadway last year, 2024. It's endless. It is an endless journey."

This segment highlights the unpredictable and enduring nature of producing Broadway shows, where persistence and belief in the project are paramount.

Financing Broadway Projects

A significant portion of the conversation focuses on the financial aspects of producing Broadway shows, a realm fraught with uncertainties. Jill candidly addresses the harsh reality that 80% of shows don't recoup their investments.

Jill Furman [02:40]: "I always say... nobody knows anything. We're going on our gut and our passion and our belief. So who's to say?"

She discusses the challenges of attracting investors, especially for projects that may not promise immediate returns. Drawing parallels to the film industry, she underscores the inherent unpredictability of theatrical successes.

Jill Furman [06:30]: "Union costs are extremely high, supply chain issues, inflation... producing is not a good business. I always talk about how stupid it is."

Despite these challenges, Jill remains optimistic about the potential for long-term gains through tours, licensing, and ancillary revenues, as exemplified by the enduring success of Hamilton and Wicked.

Case Study: Suffs and Hamilton

Using Suffs as a primary example, Jill details the intricate process of developing and financing a Broadway show. She explains the collaborative efforts with partners and the strategic decisions made to refine the production over several years.

Jill Furman [24:19]: "Suffs is going to go out on tour... money to be made from licensing... that's very important for the creators."

In contrast, she reflects on the unprecedented success of Hamilton, which defied conventional expectations and became a global phenomenon almost overnight.

Jill Furman [19:04]: "Lin Manuel is a genius. The show is absolutely brilliant. It breaks new ground, but it also honors what musical theater has always been."

Jill credits the visionary genius of Lin Manuel Miranda and the show's timely themes as pivotal factors in Hamilton's success, while acknowledging that such monumental achievements are rare and difficult to replicate.

Casting and Stars

The discussion then shifts to the critical role of casting in a show's success. Jill emphasizes her preference for original musicals, where the story itself stands as the star, rather than relying solely on big-name celebrities.

Jill Furman [14:49]: "If you put a star... then is your show still going to work? Are you going to need to get someone who is at that same level or have you established the show as an entity in its own right?"

She expresses a degree of disillusionment with the industry's trend of prioritizing star power over original storytelling, advocating instead for productions where the narrative and music hold the audience's attention.

Jill Furman [16:39]: "It's what people want to see. They want to see stars in plays or the umpteenth revival of a show starring a star... what kind of producer you want to be and what kind of shows you want to be involved in."

This perspective highlights the tension between artistic integrity and commercial consideration in casting decisions.

Scalability and Business Challenges

Mary Long raises a pertinent point about the scalability of theater productions, noting that unlike other businesses, theater inherently struggles to scale due to the limited number of performances and venues.

Mary Long [25:03]: "The world is obsessed with scale. And theater is really interesting to me because inherently, it doesn't really scale."

Jill acknowledges this challenge, elaborating on the strategies to mitigate scalability issues through tours, licensing, and ancillary products like merchandise and cast albums.

Jill Furman [25:03]: "Of course, you're hoping for something like a Wicked or a Hamilton, which is almost impossible. But you do have other ancillaries, including Merch, including the album, including touring."

She emphasizes that while scaling Broadway shows remains a formidable challenge, these ancillary avenues provide additional revenue streams that can sustain a production beyond its initial theatrical run.

Future Projects and Personal Insights

Towards the episode's conclusion, Jill shares her aspirations and current projects, including an adaptation of the beloved book and movie Wonder into a stage musical. She explains her motivation for taking on this project despite her usual preference for original works.

Jill Furman [17:11]: "I was so moved by both the book and the movie. I thought it sang... It's about choosing kind, it's about changing the way we see."

She discusses the importance of maintaining originality in adaptations to ensure that the stage production offers a unique experience beyond the source material. Jill expresses hope that Wonder will resonate with audiences and stand the test of time as a seminal American musical.

Jill Furman [18:19]: "I think people are going to recognize it as a seminal American musical. And I'm not just saying that because I'm involved. I really believe that."

Additionally, Jill touches upon other projects and productions she admires, showcasing her deep passion and discerning taste for quality theater.

Conclusion

The episode wraps up with Jill Furman offering valuable advice and insights into the Broadway production landscape. Her candid reflections on the challenges and triumphs of producing shows like Suffs and Hamilton provide listeners with a nuanced understanding of the business intricacies behind Broadway's glittering facade.

Jill Furman [27:21]: "People know that I really put a lot of thought into it."

Mary Long thanks Jill for her time and the wealth of knowledge shared, leaving listeners with a profound appreciation for the dedication and resilience required to succeed in the competitive world of Broadway.

Mary Long [27:27]: "We appreciate you coming on to Motley Fool Money."

Key Takeaways

• Unpredictability of Success: The theater business is highly uncertain, with a significant majority of shows failing to recoup their investments. Producers often rely on passion and intuition rather than concrete predictions.

• Comprehensive Role of Producers: Broadway producers are responsible for every aspect of a show, from development and financing to casting and marketing.

• Importance of Originality: While star power can boost a show's visibility, maintaining an original and compelling narrative is crucial for long-term success.

• Challenges of Scalability: Unlike scalable businesses, theater productions are limited by the number of performances and venues. Ancillary revenue streams like tours and merchandise are essential for extending a show's financial viability.

• Long-Term Commitment: Producing a Broadway show is a long-term endeavor, often taking years of development and iteration before achieving success.

Notable Quotes

• Jill Furman [00:29]: "A Broadway producer wears many hats... Develop... raise money... oversee casting."

• Jill Furman [02:40]: "Producing is the art of saying yes, judiciously and no, politely."

• Jill Furman [06:30]: "Nobody knows anything... We're going on our gut and our passion and our belief."

• Jill Furman [17:11]: "I thought it sang... It's about choosing kind, it's about changing the way we see."

• Jill Furman [19:04]: "Lin Manuel is a genius. The show is absolutely brilliant."

This episode of Motley Fool Money offers invaluable insights into the business dynamics of Broadway, blending personal experiences with industry expertise to illuminate the complexities of bringing a theatrical masterpiece to life.