West End Shines Amid Cloudy Outlook

Blitz Chairman, Munir Samji, has been commenting on the theatre market in the February 2010 issue of Pro Sound News. The article - penned by PSNE's Gez Kahan, is reproduced below:

Two London musicals – 'Wicked' and 'The Lion King' – have announced record-breaking box office receipts both for the Christmas period and for the whole of 2009. High attendances rather than increased prices were the major factor behind the rise. Similar stories, says, Richard Pulford of the Society of London Theatres, apply throughout the West End, for plays as well as musicals.

Although partly reflecting the strength of current offerings, the results owe much to the strong euro and also underline live entertainment’s traditional resilience during a recession. There are indications, however, that provincial theatre is not enjoying the same success and that investment has slowed.

“The West End is helped by tourism and a cheaper pound compared to the euro,” comments Munir Samji, CEO of Blitz Communications. “Added to that, people want to escape the economic gloom which keeps the market buoyant – so much so that there’s a shortage of theatre space in London.”

“It was a similar situation during the early ’90s,” says Autograph Sound’s finance director, Duncan Bell. “If you’re saving on holidays, then you can go to the theatre. And the past two to three years have seen a phenomenal quality of product, with a big influx of plays as well as musicals.”

Particularly during the holiday seasons, Bell notes, “The euro has driven the tourist industry. A week either side of Easter ticket sales were the highest ever – because of a massive number of tourists.”

Both Bell and Samji, however, point out that the tourism effect is specific to theatreland. “In our view you can divide the UK business into two,” says Samji. “The West End is very good, and the regions are struggling.”

While the news is good for theatre producers, it’s harder to judge whether that benefit extends to their suppliers. “As a year, last year was only slightly down – and that’s down to turnaround of shows rather than the credit crunch,” says Bell, although others see warning signs in that.

“The West End is semi-immune but we’re looking at a gradual drying up of middle-scale theatre,” says Orbital Sound’s Chris Headlam. “They get their finance largely from angel investors, and they are nervous – their cash is no longer as accessible, and their assets are worth less than they were. The stable shows are in a good position but there’s still the investment side – and we’re seeing a lower turnover of shows.”

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