With newspapers reporting daily of the worsening global financial situation it’s only natural that we in the theatre world should start wondering about how it is going to affect us?
Will people start reigning back their spending on theatre tickets as they attempt to save the pennies with the cost of day-to-day necessities ever increasing?
Will investors in commercial theatre disappear after losing money on investments elsewhere, or in failed banks?
Will the subsidised sector suffer as the government slashes its expenditure in ‘non-essential’ areas such as the arts?
Will corporate sponsors of arts events disappear?
The answer to most of these questions is that we just don’t know.
Most people I’ve spoken to in the industry seem to think that it’s too early to tell just what kind of effect the global crisis will have on theatre - and indeed the arts more broadly.
The common consensus is that normally the West End doesn’t suffer too badly during a recession. People might decide to cut down on holidays abroad and spend more time on long weekends to the capital. But then - equally - foreign trade could well drop…
In the subsidised sector, Arts Council England’s regular funding packages are in place until 2010, but beyond that… nobody knows. We might even have a new government giving out the cash at the next spending round and that may or may not make a difference in itself.
Local authorities are probably a more immediate source of worry. Many have lost huge amounts of money due to the failure of banks in Iceland and with arts not being a statutory requirement for local councils, it could be an area that some look to cut back on. Theatres - as charitable organisations - might even have their own investments which are under threat.
On the corporate sponsor front, it would seem that while most companies will have long / medium term deals in place, there could be a danger that when they end, they won’t be renewed, as companies look to tighten their belts.
Finally - the investors. Now, my guess (and it is only that) is that it could be here that we see the biggest impact. I’ve already heard rumours of one UK show being called off after some of its investors lost money when Lehman Brothers went bust. And with more and more US investors getting involved in the West End, I’d be surprised if there wasn’t some knock on effect. The New York Times is already reporting of trouble across the pond.
What do you think? Are you cutting back your theatre expenditure? Have you noticed ticket sales falling for your show?
what about regional and small scale theatre?