Some would argue that the West End in London holds that title Nederlander Producing Company has a firm foothold in both cities. Founded in Detroit in 1912 by David T. Nederlander, the company is in its third generation as a family-owned, family-run company that produces shows as well as owns and manages theaters here and abroad. “When you think about the musical format expanding around the world, that really doesn’t happen unless you’ve succeeded on Broadway,” says Nick Scandalios, executive vice president of the Nederlander Organization. “Broadway is the global imprimatur, it’s the Good Housekeeping seal of approval.” But it works both ways, as evidenced by the recent revival of Evita that made its way from London’s Adelphi Theatre (owned by Nederlander) to New York.

Nederlander entered the international market through direct investment by purchasing theaters in London. It now owns three prestigious locations: Adelphi Theatre, Aldwych Theatre, and Dominion Theatre. According to Scandalios, Nederlander is one of the few successful theater production companies in the United Kingdom that is American. Depending on the theme of the show, its target audience, and its performers, a straight product extension might work. But variables, such as language differences and the contractual availability of performers, make production adaptation the more likely strategy for moving a show from one country to another, even if it’s only from New York to England. For example, slight variations in word use or interpretation could make a joke or lyric soar or flop. For this and other reasons, it took Nederlander and co-lead producer Scott Sanders about six years and $10 million to bring a new production of the hit musical Evita from London back to New York. This process included everything from discussions with creators Andrew Lloyd Webber and Tim Rice to the hiring of new performers. 

In the meantime, the Nederlander Organization also set its sights much farther afield on countries like China and Turkey. Recently, Nederlander Worldwide Entertainment signed a global strategic partnership agreement with the China Arts and Entertainment Group (CAEG) to endorse and promote Chinese cultural products to the world. While Nederlander recognizes the huge market in China and CAEG’s exportation of more than 630 shows internationally over the past decade (along with its purchase of 30 theaters throughout China), CAEG is looking for Nederlander’s help with more sophisticated management and new channels of distribution. Nederlander will help CAEG get its productions into overseas markets, while CAEG will help Nederlander enter the Chinese market. 

In Turkey, Nederlander Worldwide has partnered with the Zorlu Property Group to create and develop a performing arts center complex in Istanbul. The new center contains two theaters, one seating 2,300 customers and the other seating 770—making it the largest multipurpose performing arts center in Turkey’s capital city. The center hosts concerts, dance performances, and Broadway musicals, along with other types of entertainment. “Istanbul is home to thousands of years of history with a rich cultural tradition, and it’s an honor for us to work with Zorlu Property Group,” says Robert Nederlander, Jr., president and CEO of Nederlander Worldwide Entertainment. Zorlu officials say their goal is to make Istanbul an international cultural center, noting that when tourists visit such major cities as New York, London, or Paris, they often like to take in a concert or theater production. With the addition of the center in Istanbul—and the marketing clout of Nederlander—they hope to put Istanbul on the global theater map.  

All of these projects need audiences, and the only way to put people in those theater seats is to sell tickets. One future goal for Nederlander is to connect ticket purchasing globally—so a traveler from the United States can buy a ticket to a show in London, Istanbul, or Beijing before departing from U.S. soil. If seats are sold out? It’ll be easy to book another show with a keyboard click. 

Questions

1. How might Nederlander benefit from expanding its business throughout the European Union (outside the United Kingdom)? What might be the drawbacks? 

2. Nederlander has already engaged in some product and promotional adaptations to bring shows from London to New York and vice versa. What additional adaptations might the firm have to make for the Turkish and Chinese markets?