Have you ever heard someone talking about Broadway investing and felt like you were a little out of place? There's a lot of unique terminology that gets used in Broadway business. To help you get started, we've compiled a list of some common terms and their definitions.

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Accredited Investor - An individual who meets certain criteria set forth by the Securities and Exchange Commission, including earning an annual income of $200,000 or having a net worth of $1 million. There are other qualifying criteria as well.

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Advance - The amount of money that a Broadway show has earned in ticket sales before the official opening night. This may be used as a measure of interest in the show and to help determine the marketing budget.

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Angel Investor - An individual who provides financial backing for a Broadway show, typically in exchange for a percentage of future profits.

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Box Office - The place where tickets are sold for a Broadway show.

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Capitalization - The total amount of money that has been invested in a Broadway show. This includes money from angel investors, producers, and other sources.

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Company Manager - The person or company responsible for the overall management of a production. The company manager may help prepare the budget, pitch deck, book rehearsal space, assist with casting, oversee fundraising, communicate with investors, help with house seats, work with the marketing company, and more.

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Co-Producer - A producer who works with the lead producer on the overall production, and may assist with raising capital.

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Deferred Compensation - Money that is earned by a Broadway professional but is not paid out until a later date.

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Lead Producer - The Broadway professional who is in charge of raising money for the show and overseeing its production. Think of this person like the CEO.

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Limited Partner - An individual who invests money in a Broadway show but does not necessarily have an active role in its production.

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Marketing Budget - The amount of money that is allocated for marketing and advertising a Broadway show.

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Opening Night - The first official performance of a Broadway show.

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Out-of-Town Tryout - A period of time when a Broadway-bound show is performed in another city before it opens in New York. This allows for any necessary changes to be made before the show opens on Broadway.

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Pitch Deck - A presentation that Broadway professionals use to present a Broadway show to potential investors. This typically includes information about the show, the creative team, and the investment opportunities.

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Playbill - The program that is given out to audience members at a Broadway show. It typically includes information about the cast and crew, as well as advertisements.

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Producer - An individual who is responsible for raising money and overseeing the production of a Broadway show.

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Royalty - A Broadway professional who is paid a percentage of the box office receipts for each performance of the show.

Secondary Market - A place where tickets for a Broadway show are sold after they are initially released to the public. This includes online ticketing websites and resale websites.

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Securities - Financial instruments that are used to raise capital for Broadway shows. These can include bonds, stocks, and other investments.

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Subscription Sales - A type of advance sales where people purchase tickets for a Broadway show before it opens. These tickets are typically purchased in bulk by organizations or groups.

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Theater District - The area of New York City that is home to most Broadway theaters. It is located between 40th and 54th Streets, from Sixth Avenue to Eighth Avenue.

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Tony Award - The highest honor that can be bestowed upon a Broadway show. These awards are given out annually by the American Theatre Wing.

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Venture Capitalist - An individual or firm that provides financial backing for Broadway shows, typically in exchange for a percentage of future profits.

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Weekly Grosses - The amount of money that a Broadway show earns in ticket sales each week. This is typically used to measure the success of a show.

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Now that you know some of the common Broadway investing terms, you can start to feel like a part of the conversation. With this new knowledge, you're one step closer to becoming a Broadway investor or producer yourself!

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If you want to invest in a Broadway show, having a working knowledge can help you be more informed when making decisions. Feel free to connect with us with any questions or to see how you can be part of the next Broadway show!

 

About Us
Jason Turchin is an attorney, entrepreneur, Broadway investor and Angel investor. The Broadway Investor's Club portfolio includes investments in Broadway’s Hadestown, Be More Chill, Parade, Sweeney Todd, Merrily We Roll Along and more. For more information on Jason and his investments or The Broadway Investor's Club, visit https://www.investingbroadway.com/. 

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