Theaters charge high ticket prices, yet many still struggle to stay afloat. Rising costs everywhere, from rent to labor, eat up the extra money from those tickets, while fewer people show up to buy them.
Broadway musicals offer a clear example. Since the pandemic, 46 new ones have opened at a total cost of about 800 million dollars, but only three have made a profit so farhttps://newyorktheater.me/2026/01/01/10-questions-about-theater-in-2026/. Producers face skyrocketing expenses for theater rent, worker pay, fees, and even basic materials like lumber, which has doubled in price since 2016https://newyorktheater.me/2026/01/01/10-questions-about-theater-in-2026/. Ticket prices have not kept pace with these jumps, leaving shows in the red.
Regional theaters tell a similar story. From 2023 to 2024, attendance dropped 19 percent and income fell 37 percenthttps://www.gulfshoreplayhouse.org/news/as-regional-theaters-struggle-some-defy-the-odds/. Many now stage fewer shows, hire less staff, and run deficits more often than before COVID hit. Nearly 50 theaters, music spots, museums, and galleries have closed since 2020 due to changed audience habits, high insurance bills, and other pressureshttps://newyorktheater.me/2026/01/01/10-questions-about-theater-in-2026/.
High living costs make it worse for everyone involved. In places like New York, artists face an affordability crisis, with actor numbers down eight percent and dancers down 18.8 percent since the pandemichttps://newyorktheater.me/2026/01/01/10-questions-about-theater-in-2026/. Live shows have turned into rare treats rather than regular outings, as prices push them out of reach for most folks.
Streaming options pull crowds away too. People now watch movies and shows at home for less money, leaving theater seats empty. North American box office revenue has fallen in real terms since 2010, even as ticket prices stayed mostly flathttps://www.thestreet.com/entertainment/movies-struggle-for-place-in-changing-entertainment-market. The full cost of a theater trip, including snacks, feels too steep for many.
A few theaters buck the trend by cutting smartly during tough times or holding onto staff and cash reserveshttps://www.gulfshoreplayhouse.org/news/as-regional-theaters-struggle-some-defy-the-odds/. Others chase premium crowds with big-screen formats like IMAX, which saw strong growth in 2025https://www.latimes.com/entertainment-arts/awards/story/2025-12-18/imax-2025-box-office-2026-preview. Still, most fight to balance high prices with empty houses and endless bills.
Public funding adds another layer of hassle. In some areas, grants come with so much paperwork that they create more problems than they solvehttps://thecrushbar.substack.com/p/my-hope-for-2026-for-theatres-to. Cash-strapped local governments struggle to help, leaving theaters to fend for themselves.
Sources
https://newyorktheater.me/2026/01/01/10-questions-about-theater-in-2026/
https://www.gulfshoreplayhouse.org/news/as-regional-theaters-struggle-some-defy-the-odds/
https://www.thestreet.com/entertainment/movies-struggle-for-place-in-changing-entertainment-market
https://thecrushbar.substack.com/p/my-hope-for-2026-for-theatres-to
https://www.latimes.com/entertainment-arts/awards/story/2025-12-18/imax-2025-box-office-2026-preview
