Hamilton is a Broadway show that has become the next big thing. Michael Sokolove looked at the economics of that kind of success:

• Usually Broadway shows aren’t that great an investment. But when you have a hit like Hamilton there are few returns of investments so appealing.
• After you pay the initial upfront costs the show can run for decades, and in multiple locations.
• All in all investors put in $12.5 million for the show. It is soon expected to make $1 billion in profit in New York alone.
• In fact the show earns half a million dollars in profit every single week.
• And $82 million worth of tickets for future shows – the equivalent of 400 sold out shows – have been sold.
• The producers of the show could easily make more money. While they sell tickets for between $67 and $477, scalpers go onto sell the tickets for up to $2,000.

Read more here.

Source: The New York Times

Via: Marginal Revolution