Liscensing question
Printed From: Community Theater Green Room
Category: Theater Administration
Forum Name: Money Talk
Forum Discription: Questions about fundraising and promotion
URL: http://www.communitytheater.org/forum/forum_posts.asp?TID=4536
Printed Date: 5/01/24 at 7:14pm
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Topic: Liscensing question
Posted By: lagazza
Subject: Liscensing question
Date Posted: 3/22/10 at 3:54pm
I am rather new at producing theater, so I need a question answered.
If you intend on paying your actors (I am not talking big money, like $75 per performance) are we still an amateur theater production?
Will your licensing fee be higher or lower?
Just wondering before I apply.
Oh, it would be with MTI.
Thanks,
MN
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Replies:
Posted By: POB14
Date Posted: 3/24/10 at 3:44pm
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If you pay actors, you're not amateur.
I would imagine the royalties would be higher, but I don't know. MTI asks what you pay the actors in its licensing application.
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POB
Old Bugger, Curmudgeon, and Antisocial B**tard
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Posted By: John Luzaich
Date Posted: 3/25/10 at 11:13am
It's not what you or I, or the majority of people think: In the eyes of a licensing company, if you don't have a contract with Actors Equity, you're an amateur theatre. There are community theatres that pay actors a small stipend (we're not one of them) but they are still considered amateur theatre. Your royalties are based on three things: (1) ticket pricing, (2) number of seats in your venue, (3) number of performances you produce.
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John
cfct@cfu.net
http://www.osterregent.org
http://www.facebook.com/osterregent
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Posted By: lparks
Date Posted: 4/01/10 at 2:49pm
Good afternoon.
The definition of 'professional' varies from licensing house to licensing house. Most, however, consider you 'professional' if you are paying your actors a living wage, regardless of equity affiliation. For instance, MTI considers you professional if 50% or more of your actors are paid $200 or more per week. Dramatic Publishing is only if ALL the actors are paid at least $150 per week.
Generally, Theatre's that pay stipends, even 'professional' ones, get treated as amateurs.
And to clear it up, professional theatre's ARE NOT charged more in royalties. If anything, they are charged potential less than their amateur counterparts. This is because while Amateurs are charged royalties payable 100% in advance that is equal to 100% of their potential ticket sales. This means that if you have a house that seats 500 people, and you make 500 seats available with a ticket price of $15, your royalty per performance will average $600-$900 for amateurs, depending on the show (shows average 10%-14% GBOR).
On the other hand, professionals only pay 50% of their estimated potential box office upfront. So, in this case, taking into account the same house and prices as above, the professional theater only pays $300-$450 per performance, and remits the remaining royalty at the same royalty rate as amateurs after the performance.
the advantage to this is that: amateurs will always be charged based on the maximum box office they could make, even though many don't meet this goal. Professional's only remit 50% of their potential box office, and only pay the remaining 50% on the ACTUAL ticket sales.
But in general, both Amateurs and Professionals are charged the same royalty percentage rates, which vary from 9% for a non-Broadway musical to 14% for something like Miss Saigon.
Same thing applies for straight plays, except that amateurs are usually only charged a small royalty ($75 per performance), were professional remit between 6% and 12% of their box office. In this case, amateurs could potentially get a better deal on royalties, depending on your actual ticket sales.
Thanks!
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Landon Parks,
Producing Artistic Director,
Bloomington Repertory Theatre Co
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Posted By: lagazza
Date Posted: 4/01/10 at 3:17pm
Thanks for the information. Most helpful. And insightful. Gives me food for thought.
Also answered another question I had. ALW's By Jeeves was quoted at 720.00 per, while Shout the Mod musical was higher. Different companies, different rates.
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