Thanks for a most interesting question. The makeup of production
costs in opera and musicals is very different, and the difference lies
in the issue of fixed vs. variable costs. Fixed costs, such as
directors and choreographers fees, publicity, costumes, sets, lighting
and props can, and often are, higher in a musical than an opera.
Variable costs, such as orchestra, music royalties, programs, fees for
singers, chorus, dancers, technicians, etc. tend to be higher in
opera. Thus, a production with a run of, say, 50 performances will
incur in the variable costs, plus 1/50 of the fixed costs per
performance. Ticket sales being a variable revenue, the show with the
lower variable costs done more times has the advantage. This makes it
possible for a musical to actually turn in a profit, while operas have
to be kept to a minimum of performances in order not to bankrupt the
company.
Here is an oversimplified example:
Where Fixed Costs (FC), Variable costs (VC), Variable Revenue (VR).
Variable revenue is ticket sales, assuming sellouts in an opera house
of 1,000 seats and a musical theater of 650 seats, ticket prices
averaged at $60 ea.
For 10 performances:
Musical: FC 1,000,000 + VC (30,000 *10)= 1,300,000 Costs
VR (39,000 * 10) = 390,000 Shortfall (910,000)
Opera: FC 700,000 + VC (100,000*10)= 1,700,000
VR (60,000 * 10) = 600,000 Shortfall (1,100,000)
For 125 performances:
Musical: FC 1,000,000 + VC (30,000 * 125) = 4,750,000
VR (39,000 * 125) = 4,875,000 Profit 125,000
Opera: FC 700,000 + VC (100,000 * 125) = 13,200,000
VR (60,000 * 125) = 7,500,000 Shortfall (5,700,000)
In this example, the musical turned a small profit while the shortfall
for the opera multiplied more than five-fold. This is why a run of
125 performances for an opera is unheard of, while 125 performances
for a musical is a rather short run.
Opera companies, mostly non-profits, make up their deficits with
fund-raising, their only source of fixed revenue. Musicals have
almost no fixed revenue, so the companies must borrow money to make
shortfalls. I disregarded these factors in this model.
These are the financial realities which killed operas such as Les
Huguenots, which requires seven leading singers, plus a 50-piece
orchestra and a large ballet and chorus. Musicals will seldom have an
orchestra bigger than 15, and the leads, choristers and dancers tend
to be fewer than in grand opera.
Valfer
Post by Jack HamiltonA friend asked me a question that I don't have a good answer to: Why is
an opera more expensive than a musical? Both have singers, actors,
dancers, an orchestra, and (sometimes elaborate) sets. Is there some
single element that is more expensive for opera, or is it that the fixed
costs (primarily rehearsals and sets) are spread across fewer
performances, or is it something else?
==
Jack Hamilton
==
In the end, more than they wanted freedom, they wanted comfort and security.
And in the end, they lost it all - freedom, comfort and security.
Edward Gibbons