Theater IP Ownership

The speakers discuss how owning theatrical IP and content is more valuable than being the performer, using examples of successful shows and productions to illustrate the business model's potential.

Key Points:

• IP Ownership is Critical

  • The key is owning the intellectual property, not performing it
  • Shows can generate revenue without creator's physical presence
  • Can leverage IP across multiple platforms and merchandise

• Notable Success Examples:

  • Book of Mormon
    • Generated $500 million in gross ticket sales
    • Brought in $19 million per month at launch
  • Hamilton
    • Creator Lin Manuel Miranda gets 7% royalty
    • Used crowdfunding model with profit sharing
  • American Idiot
    • Green Day successfully converted album to musical
    • Generated significant revenue without band's presence

• Current Market Conditions

  • Best time to be a content/IP holder
  • Multiple streaming platforms competing for content
    • Netflix, Amazon Prime, Disney+, Hulu, Apple TV+
  • Platforms spending billions annually on content
    • Netflix/Amazon spending ~$6 billion/year on content

• Recent Major Deals

  • South Park: $900 million deal with ViacomCBS
  • Reese Witherspoon: Sold production company for ~$1 billion
  • Rob Dyrdek: Sold production company for ~$200 million
  • Shonda Rhimes: Multi-hundred million deal with Netflix

• Business Model Advantages

  • More creatively fulfilling than traditional performance
  • Can scale beyond personal appearances
  • Multiple revenue streams (shows, merchandise, licensing)
  • Potential for larger exits than traditional entertainment careers