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The Marketing Genius of Peter Gelb

Transforming the business model of grand opera forever

July 2008 By Denny Hatch
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In the News

New Season Announced! 2008-09 Live in HD
The Met’s groundbreaking series of live, high-definition performance transmissions to movie theaters around the world expands in its third season. To meet increasing global demand, The Met: Live in HD will present 11 transmissions in 2008–09, up from eight. The HD productions will be seen in almost 800 venues and a number of new countries in South America and Europe are joining the network this season. Don’t miss the chance to experience the Met live at your local movie theater!
—Metropolitan Opera Web site, July 17, 2008
My friend, Goldberg, had a subscription to the old Metropolitan Opera on West 40th St. For years he sat next to a lady whose husband, on the other side of her, fell asleep through most of every performance.

When the Met moved to Lincoln Center, Goldberg decided he’d had enough and informed the lady he was giving up his seats.

“I’m so sorry,” she said. “I’ve really enjoyed having two men sleeping with me for the past 20 years.”

Now—at age 72—I have become hooked on opera.

Who’d a thunk it?

Typical Opera Experience
Opera was never my thing. Several years ago, my wife, Peggy, and I went to the Metropolitan Opera at Lincoln Center with a friend from Boston who donates a lot of money and gets good seats. We saw “Rigoletto,” which is about a hunchback. Our friend took care of the seats, and we bought dinner at the Met before the show. Dinner was elegant—I imagine rather like Delmonico’s in the 19th century. I could picture Diamond Jim Brady and Lillian Russell at the next table. During intermission following Act 1, we returned to our table in the restaurant for dessert, coffee and brandy. Seats for the opera and dinner for three were hundreds of dollars.

At the opera: bench-like seats, painful knees and a lighted crawl with the libretto in English running across the back of the bench ahead of me. Stage was half a mile away, not great for my lousy (20/400) eyesight. Dramatic scenery, but tiny figures in the far distance. Whole lot of singing and yelling, but nothing tuneful to remember.

Finally in Act 3 came the great aria, “La Donna é Mobile” (“A Woman is Flighty”). Roughly two exquisite minutes after seeming hours of unintelligible vocal mush—not great to someone who grew up attending the melodic Broadway masterpieces of Cole Porter, Rogers and Hammerstein, Irving Berlin, and Frank Loesser. I prefer “Die Fledermaus” or “Carmen.”

After the show, there were zero taxis. We ran to catch a subway so we could catch the late train home to Philly from Penn Station, 30 blocks south.

The next day was sleep-deprived and unproductive.

The Quirky Metropolitan Opera Business Model
Employees: 1,500
Audience capacity (includes 195 standing room): 3,995
Live audience capacity per sold-out season: 838,950
Avg. ticket price: $100
Tix revenue per sold-out performance: $399,500
Performances per week: 7
Tix revenue per sold-out week: $2,795,500
Weeks a year: 30

Takeaway Points to Consider:

* Peter Gelb revolutionized a centuries-old business model that depends on butts in seats.

* Formerly limited to 4,000 seats at the Metropolitan Opera house, Gelb added 12,000 to 15,000 more seats in movie theaters and cruise ships around the world.

* The result, more people will pay to attend HD theater telecasts than go to the home venue in Lincoln Center.

* Does your organization encourage so-called “intrapreneurship”—enabling existing Employees and associates to expand your brand and build new businesses?

* Do you have products or services with content that could be repositioned and slightly adapted for an entire new market? If so, this can be a lot easier, quicker and cheaper than starting a new business from scratch.

* Do you make it easy for your people to execute new ideas? For example, the publisher of this e-zine is North American Publishing Co. in Philadelphia—a privately held company so trusting of its publishers that new magazines and Web products have been launched after OKing a one-page business plan.

Web Sites Related to Today's Edition:

Metropolitan Opera Web site
http://tinyurl.com/5gufeq

Met at the Movies: 2008-2009 Schedule
http://tinyurl.com/5mrv3o

“New Era Brings Buzz (and Big Budgets) to the Met”
http://tinyurl.com/5d79cs

Luciano Pavarotti — “La Donna è Mobile
http://www.youtube.com/watch?v=xCFEk6Y8TmM

Charlie Rose: A Conversation With Natalie Dessay
http://tinyurl.com/6qopur

“The Metropolitan Opera—Turnaround Case Study”
http://tinyurl.com/5gq89c

“The Daughter of the Regiment” – The Playbill
http://www.playbillarts.com/features/article/7635.html

“Daughter of the Regiment,” David Patrick Stearns Review
http://tinyurl.com/6jagnw
 
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COMMENTS

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Most Recent Comments:
Sean Giorgianni - Posted on July 25, 2008
Denny, this kind of stuff is your sweet spot! Thanks for bringing this to my attention. It's amazing to see how the application of basic business can improve something like an opera house. And to think, CA has a $15B budget problem ... wonder if Mr. Gelb is interested in helping us?
Phillip N. Chestertown, MD - Posted on July 24, 2008
Of course, opera has always been "larger than life" ... think of all the famous singers over the years who have transcended the medium (Maria Callas, Beverly Sills, Llil Pons, Rise Stevens, Luciano Pavarlotti ...the list goes one). But Peter Gelb's innovation is making opera larger than ever -- in every respect. I know people who are driving 50 miles or more to attend these live film events -- people who wouldn't be willing to go that distance and face the crowds/traffic at the Kennedy Center or the Academy of Music. And why not? You get all of the benefits of a "live" production (and more), and none of the drawbacks.
Click here to view archived comments...
Archived Comments:
Sean Giorgianni - Posted on July 25, 2008
Denny, this kind of stuff is your sweet spot! Thanks for bringing this to my attention. It's amazing to see how the application of basic business can improve something like an opera house. And to think, CA has a $15B budget problem ... wonder if Mr. Gelb is interested in helping us?
Phillip N. Chestertown, MD - Posted on July 24, 2008
Of course, opera has always been "larger than life" ... think of all the famous singers over the years who have transcended the medium (Maria Callas, Beverly Sills, Llil Pons, Rise Stevens, Luciano Pavarlotti ...the list goes one). But Peter Gelb's innovation is making opera larger than ever -- in every respect. I know people who are driving 50 miles or more to attend these live film events -- people who wouldn't be willing to go that distance and face the crowds/traffic at the Kennedy Center or the Academy of Music. And why not? You get all of the benefits of a "live" production (and more), and none of the drawbacks.