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In the case of live shows - An investor lends money. A producer assembles a team and produces a show. If it's a great show, in the right market, with the right promo, they sell out every night and nX the investor's ROI.
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Unless the company has a continual pool of capital, they need to borrow/sell equity every season, or every large season. But the turnaround is very quick (6mos/1yr) and good producers will consistently produce sellout shows (and vice versa).
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