| Off-B the reduction can lower the "tier" so that some labor costs are reduced. On Broadway, there are no tiers, but there are a couple of reasons to do it. As discussed already, it may increase demand by reducing supply. This has a few effects, the most obvious being making the remaining seats dearer, but it also can eliminate one or more lower price layers (the Belasco's balcony has been closed for quite a few shows (including Appropriate), and Studio 54 had the upstairs closed for the most recent tenant as someone noted above). This also sometimes has collateral benefits to the production: it may allow the impression that the show is doing better and/or more popular than it is. And another reason, as discussed, is that it will reduce costs at least marginally. |
