And has some issues that are different.
First of all, the royalties are based on the size of the house, and the number of performances - not on the number of tickets sold. So basically, if you're company has a big house, there's no practical way to do a small show. So the same 20 musicals keep getting produced over and over again.
The other big difference is that with a thatrical royalty, part of what you're paying for is a measure of exclusivity. IIRC, no other company can produce the show within 90 miles and 90 days, and shows are generally not "released" to the market until after the original Broadway and/or London runs are closed. This limits the number of times a show can be produced, and puts a top end on the amount of money earned by the playwright.
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