Broadway Sets Box-Office Record, Powered by ‘Hamilton’ and Springsteen | The New York Times

Dynamic pricing — the practice of varying prices to reflect consumer demand — is not new to Broadway. But this past season, producers became increasingly deft at it, and that’s why revenue is growing so much faster than attendance.

Theatergoers generally pay a premium for a seat in the center orchestra. It often costs less to see shows on a Tuesday night than on a Saturday, and more during the last week of December (Christmas!) than the first week of January (cold!).

The three shows with the highest average prices this past season — “Hamilton,” “Springsteen” and “Dear Evan Hansen” — are all in midsize theaters, meaning they had a limited supply of tickets despite enormous demand. And the premiums they charged had an added benefit for producers — helping reduce profiteering by resellers, and reclaiming money for investors and artists.

“Dynamic pricing is a reality today, not just in our industry, but in many,” said Nick Scandalios, executive vice president of the Nederlander Organization, which operates nine Broadway theaters. “There are many, many, many inexpensive tickets on Broadway, but there is no reason a Springsteen ticket or a ‘Hamilton’ ticket should be less than it is, from a supply and demand standpoint, because the price is reasonably matching what the consumer considers to be the value.”

The most striking example this past season: The producers of “Hello, Dolly!,” recognizing the intense enthusiasm for Bette Midler’s performance in the lead role, charged $998 for front row seats late last year, counting on her biggest fans to pay for the pleasure of proximity.

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Broadway Sets Box-Office Record, Powered by ‘Hamilton’ and Springsteen – The New York Times.