It's no secret that Hamilton is kicking ass right now.
The hip-hop musical has truly taken over Broadway, receiving 16 Tony nominations and even taking home the Pulitzer Prize for drama.
The show is also raking in millions of dollars. That's right, millions; nearly $67 million since it opened n July. That has you rethinking your "practical" switch from theatre major to accounting degree, doesn't it?
However, a decent chunk of that revenue is going towards ticket scalpers, and it's causing quite an upset in the Broadway community.
According to Matt Rousu, an economics professor at Susquehanna University, at least $30,000 worth of revenue from each show goes to resellers.
That's a huge chunk.
It's so huge that the producers of the show are considering doubling the ticket price to compensate for this lost revenue. It makes financial sense, but would jack up the cost of tickets to a cool $995. Oof.
Mitch Weiss, Broadway manager and author, says, "They don’t want to charge people that much to see a show. But if someone is going to make money, it ought to be the people who work on it.”
Unfortunately, resellers are getting more and more sophisticated with their methods of procuring tickets. The majority of them utilize "ticket bots", illegal software that allows them to purchase tickets to live events. Ticketmaster has attempted to counter this by requiring a security code to be typed in, but some resellers have found a way around this by hiring workers in foreign countries, where labor is cheaper, to type in these codes.
Luckily, producers realize that jacking up ticket prices would be a huge turn off for audiences, so we're hoping it doesn't come to that.
“Hamilton is spectacular, but it’s just a show,” Weiss says. “Four thousand dollars for a ticket? Give me a break.” We can't help but agree.[via Bloomberg]