Theater - goods or services?

logophile

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While driving my (almost) 10 year old to school this morning, she asked me a question. I have thought about it for the last hour, and have posed the question to my ex-husband (my go-to guy for all things business), my older sister (who knows everything, just ask her!), and to Sophie (who is, of course, brilliant). I didn't get the same answer from any of them.

The question:
If you own a theater, and the thing that you produce is plays, are you providing goods or services?

What do you think?
 
While driving my (almost) 10 year old to school this morning, she asked me a question. I have thought about it for the last hour, and have posed the question to my ex-husband (my go-to guy for all things business), my older sister (who knows everything, just ask her!), and to Sophie (who is, of course, brilliant). I didn't get the same answer from any of them.

The question:
If you own a theater, and the thing that you produce is plays, are you providing goods or services?

What do you think?

Since there is nothing you can take home and put on a shelf where it yours forever and ever, until it gets garage saled anyway, it is a service.
 
Services. Like a hair salon or an auto repair shop.

Maybe the best analogy would be a therapist. You go there, sit down for a while, and feel better when you're done.
 
Oh , and I have owned a theatre and produced plays, so take my word for it. :)
 
Services. Like a hair salon or an auto repair shop.

Maybe the best analogy would be a therapist. You go there, sit down for a while, and feel better when you're done.

I used this analogy too!

I can actually see it both ways, but maybe that's just because I like to go both ways.
 
My ex-husband said it was a good, and one of his reasons was that part of the money a patron pays for a ticket pays royalties and copywrite fees, which cover using someone's intellectual property.

What do you think of that reasoning?
 
While driving my (almost) 10 year old to school this morning, she asked me a question. I have thought about it for the last hour, and have posed the question to my ex-husband (my go-to guy for all things business), my older sister (who knows everything, just ask her!), and to Sophie (who is, of course, brilliant). I didn't get the same answer from any of them.

The question:
If you own a theater, and the thing that you produce is plays, are you providing goods or services?

What do you think?

You're providing culture for the masses. Its a blessing.
 
My ex-husband said it was a good, and one of his reasons was that part of the money a patron pays for a ticket pays royalties and copywrite fees, which cover using someone's intellectual property.

What do you think of that reasoning?
Nah.

All kinds of services have costs for materials, wear and tear on tools, transportation, et al. The service provider buys the goods. (Which are then of course transferred into the service fee.) And the theatre in this case is the one buying the appropriate IP rights (with can be argues to be a goods). You, the audience, never gets to own any IP rights however.

For another analogy: You don't buy the taxi driver's gasoline.
 
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You're providing culture for the masses. Its a blessing.

Yes, I agree.
It's hard for me to answer this one without emotion because of my theater background.
For the purpose of answering the kid's question, though is it a good or a service?
:kiss:
 
Yes, I agree.
It's hard for me to answer this one without emotion because of my theater background.
For the purpose of answering the kid's question, though is it a good or a service?
:kiss:

I would have to say service then.:rose:
 
What? There's no choice of "Entertainment"?

Which, of course, is the essence of the question: is entertainment a service? If you buy cable t.v. or pay a special fee to watch a boxing match on your cable channel is that a service? What if you just go to the boxing match or basketball game? Do those who own the stadium provide goods or services? I'm with Liar so far in that the stadium owners provide goods in offering you this:

http://www.biggsports.com/catalog/FBOTCBOSPP.jpg

But providing a place where the game can be held and played is a service because you don't buy any part of the stadium. You rent your seat (more or less) and pay for the services of the players to put on a show. Ditto with a movie theater. The over-priced popcorn is goods, the movie itself a service.

Hm. How about internet...service?
 
What? There's no choice of "Entertainment"?

Which, of course, is the essence of the question: is entertainment a service? If you buy cable t.v. or pay a special fee to watch a boxing match on your cable channel is that a service? What if you just go to the boxing match or basketball game? Do those who own the stadium provide goods or services? I'm with Liar so far in that the stadium owners provide goods in offering you this:

http://www.biggsports.com/catalog/FBOTCBOSPP.jpg

But providing a place where the game can be held and played is a service because you don't buy any part of the stadium. You rent your seat (more or less) and pay for the services of the players to put on a show. Ditto with a movie theater. The over-priced popcorn is goods, the movie itself a service.

Hm. How about internet...service?

So, is rental a good or a service? If I'm renting an apartment, does that mean that my landlord is providing a good or a service? How about if I rent a car for the weekend or a pair of roller blades for the afternoon?
 
So, is rental a good or a service?
It's a service. You don't own what you rent.

You could argue however that the contract itself for renting for instance an apartment, might be a goods. If you have a contract that gives you the right to sell that "renting right" to someone else.

So a seat reservation might be a goods. You can sell your seat reservation to someone else for money. But that money is a transaction between you and this someone else. Not between you and the theatre. So the show, what you pay the theatre, is still a service.

Confused enough yet?
 
It's a service undoubtedly.

The only goods involved for you are optional, i.e. the programme should you desire one.
 
In California, at least, it is considered to be a service. Things provided to the patrons, such as tickets, programs, lists of cast memberws, etc. are incidental to the providing of a service. This is actually written into state law. :eek:

If you sell refreshments, etc. these are considered to be products.
 
Essentially, a theater can be both.

The play is entertainment which by definition is a service.

The play bills, programs and refreshments if they are sold are products and therefore goods.
 
Essentially, a theater can be both.

The play is entertainment which by definition is a service.

The play bills, programs and refreshments if they are sold are products and therefore goods.
Yep. Separate that you can either eat or take home are goods.

As much as I have sometimes wanted to, I never got to take any of the actors home. Or even nibble at them on location.
 
So, I've been asking this question to every one I come into contact with, and have some really interesting responses. Most people agreed that plays are a service, not a good.

Someone said that all art is a service, and that occasionally you get something tangible, but often you don't. Listening to music fell into the latter category while purchasing a painting fell into the former.

The people I work with in the bookstore said service, but only after talking it through for a while. The head of the English department thought about it during class and finally decided it was a service, but said she initially wanted to say that it was a good. She based her initial opinion on the same argument that my ex-husband made: the use of intellectual property.

Interestingly, the two men who run the concert series (and thus the portion of our theater that deals mostly with the public) on campus both said that it was a good. Unequivocally and without stopping to think about it at all. I questioned them separately on the issue.

I also sent an email to the box office manager and the artistic director of the theater where I work part-time. It's a different one than the campus theater. The box office manager said service, but she said that it took a while to think it over and then she looked up definitions for "goods" and "services." After reading them both a few times, she decided services. The artistic director said he could see her point, but really felt like the product he was creating as a director qualified as a good.

Anyway, just thought I'd let you all know what other people thought. Thanks for sharing your opinions with me! I'll be sure to let my daughter know what everyone thought.
 
While driving my (almost) 10 year old to school this morning, she asked me a question. I have thought about it for the last hour, and have posed the question to my ex-husband (my go-to guy for all things business), my older sister (who knows everything, just ask her!), and to Sophie (who is, of course, brilliant). I didn't get the same answer from any of them.

The question:
If you own a theater, and the thing that you produce is plays, are you providing goods or services?

What do you think?

I think that's one hell of a precocious question for a ten year old to ask! :eek: You must be doing somethin' right.
 
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