Ningbo Grand Theater Stages Boom Shows

CEO of Ningbo Grand Theater Chen Jianfang was worried. Running the showbiz of this ultra-modern theater is a tricky business. A landmark with a building cost of 650 million yuan， the 71，285-square-meter architecture， completed in May， 2004， is situated in downtown Ningbo where three rivers converge. The grand structure is home to two theaters， one with 1，500 seats and the other 800 seats. With all the world-class cutting-edge hardware， it is one of the best theaters in the country.

Like other grand theaters across the country， the showbiz was not as great as expected. The Ningbo Grand Theater ran into a vicious cycle: the more shows the theater staged， the more losses the theater suffered， despite government subsidies and preferential policies.

So Chen Jianfang decided to take reform measures. His basic idea was to make money out of the upper end of the showbiz industry. He believes that a good show can be staged repeatedly， attracting audience and making profit continuously.

So in 2007， Ningbo Grand Theater struck up a partnership with an Austrian showbiz company to produce a musical called Princess Sisi. The Austrian partner put in 50% of the investment in the form of copyright and art production. The Austria-China Cultural Exchange Center invested 20% by recruiting director and performers， making arrangements for rehearsals， and getting music and costumes. Ningbo Grand Theater put up 30% of the investment， which was used for promotion， lighting， acoustics， makeup， dancers. Altogether Ningbo Grand Theater invested 2 million. Chen was surprised to see the income was unexpectedly great.

The new production mode cut down operating costs by a large margin. Normally， an international troupe needs to ship all the props and equipment from abroad， gobbling up a large chunk of cost. To stage the musical， Ningbo Grand Theater lowered its cost by using its own technical personnel and lighting and acoustic equipment.

The first national road show that started in November 2008 was 40 performances in more than ten major cities such as Beijing， Shenyang， Nanjing， Shanghai， Suzhou and Hangzhou. The return from the first round of road shows covered all the costs and made the breakeven point. The second round of road shows ran from August to November， 2010. This time， Ningbo Grand Theater made a profit of 800，000 yuan. It was no big money， but Chen was extremely happy with the encouraging success. He is proud that the theater paid 200，000 yuan in business tax for the first time in its history.

Chen Jianfang considers this new business mode a great success and says its significance can’t be overestimated. The money has given him and his colleagues confidence and a taste of reform. And through the first cooperation with the foreign production team， Ningbo Grand Theater has formed a team of professionals versed in all the aspects of production and promotion. Moreover， the theater has established its reputation on the national showbiz market.

Ningbo Grand Theater is ready to do more. In December， 2010， the theater signed a cooperation agreement with a Korean partner to stage “The Lady of the Camellias” at West Lake International Music Festival 2011. The theater aims to adapt “The Tale of White Snake Lady” to an opera performance with the aid of musical professionals from Korean. It plans to produce a drama in cooperation with the China National Drama Troupe if there is a good script. It also plans to produce a Broadway musical with an American partner.

Chen Jianfang learned a lesson from the first success: 50% of profit from the first round of the road shows went to the Austrian partner for copyright payment. He now aims to find scripts with copyrights no longer under copyright protection. And he knows he needs to make the best use of the resources of Ningbo Grand Theater to minimize costs and maximize profit.□