The illusions of 'Harry Potter and the Cursed Child' extend to its weekly box office reports
NEW YORK, NY - APRIL 22: Signage at"Harry Potter and The Cursed Child parts 1 & 2" on BroadwayBruce Glikas/FilmMagicAlthough the financial statements of the Broadway show indicate that it is still earning the maximum amount of money that it could make from selling every ticket at full price, its producers have been discreetly slashing ticket prices over the past year in an effort to fill the 1,622-seat Lyric Theatre.
“Suppose they're currently selling 100 tickets at $100,” and, “if the demand falls, then maybe they can only sell 80 tickets at $100,” described UCLA professor Simon Board in an example. “The producers can lower the price to $80 to raise demand back to 100 tickets,” he explained. While it might seem disingenuous to reduce the potential revenue of the show at the box office and then report that it is generating all of its potential revenue, there is nothing unlawful or unusual about the practice. The producers of the $35.5 million play are not inflating its financial figures, and several long-running musicals likeHowever, the timing and the magnitude of the reduction are abnormal.
In addition, the reduction of about $900,000 in potential revenue is larger than the decrease of other shows that have adopted a similar pricing strategy. For example,lowered its potential revenue from about $1,390,976 in 2014 to its current level of $1,190,502. While the present potential revenue level is above the break-even point for the play, and the producers are close to recouping their initial investment, Rafael stated that “[t]he challenge they have is that there isn’t a lot of precedent for plays performing like musicals.” Almost all of the plays that made about the same amount of money as musicals on Broadway were limited engagements featuring popular performers.
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