DOI :10.26650/PB/SS10.2019.001.087   IUP :10.26650/PB/SS10.2019.001.087    Full Text (PDF)

Subsidies to Private Theaters

Sacit Hadi Akdede

Subsidies to private theatres are one of the main cultural policy problems of many countries. Increasing the number of audience is an important priority of many countries’ cultural policies. Private theatreas like public theatres are important cultural entities to increase the number of audience in many countries. The main goals of public theatres can be also met by private theatres if the governmet subsidies them. In addition, private theatres can serve very well to the cultural diversity of countries. State theatre, in politically polarized countries like Turkey, can not provide cultural diversity since they can not produce political plays. If government draws a good defined cultural subsidy program, it can provide fiscal aid to any theatre that meets the requirements of subdity program. Market structure of private theatres all over the world is close to perfect competion. It is not monopoly, but monopolistic comptetition. If the number of private theatres is increasing, it does not mean that the market becomes competely capitalistic. Theatre sector is not like cinema, TV, or media sector. There are more private theatres than public theatres in more developed countries and most of them get government subsidy from central and local governments. 

JEL Classification : Z01 , Z11


  • Baumol, W.J. ve Bowen W.G. (1965) “On the Performing Arts: The Anatomy of Their Economic Problems”. American Economic Review, 55: 495-502. google scholar
  • Baumol, W.J. ve Bowen W.G. (1966) “Performing Arts-The Economic Dilemma”. The Twentieth Century Fund. New York. google scholar
  • Zieba, Marta .(2009). Full-income and price elasticities of demand for German public Theatre, Journal of Cultural Economics, 33 (2) , 85-108. google scholar
  • Loyland, K. ve Ringstad V. (2007) “Norwegian subsidized theatres-failure or future?”, International Journal of Cultural Policy, Vol. 13, Issue:4, 407-417. google scholar


Istanbul University Press aims to contribute to the dissemination of ever growing scientific knowledge through publication of high quality scientific journals and books in accordance with the international publishing standards and ethics. Istanbul University Press follows an open access, non-commercial, scholarly publishing.