Company Category

Company Category is determined by calculating weekly box office potential. It is the basis for establishing the minimum fees for Artists.

Equity must confirm your Company Category to determine the amount that must be posted as security, which then allows you to access Equity contracts.

Related information can be found in Article 15:00 of the Independent Theatre Agreement.

Calculation Method

Company Category may be calculated based on either:

Method A: A single production that is not part of a series of productions
Method B: A series of productions (i.e. a season) that has consistent ticket prices

Your Company Category Calculation must be approved by Equity. To ensure this is done in time, we suggest submitting the form and all supporting documentation to Equity at least 8 weeks prior to when contracts need to be released. Be sure to file all of the required information and documents to avoid delays.

ITA Company Category Calculator

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Requirements

To have your Company Category confirmed by Equity, you must submit the Company Category Calculation Form (download above) and supporting documentation clearly showing:

Regular season/production ticket prices
Discounts to regular ticket prices
Subscription revenue from the last comparable series (if applicable)
Series schedule/performance calendar (if applicable)

Supporting documentation may be printed materials or links to online advertisements.

If you are contracting either a single production or series at Company Category A, you do not need to file a Company Category Calculation Form with Equity.

How to Calculate Gross Box Office Potential

The following instructions will guide you through calculating your Gross Box Office Potential:

List your full ticket price breakdown:
- Full non-discounted ticket price (incl. taxes and fees) x Number of seats at that ticket price x Number of performances per engagement week (Method A) or Number of performances in the series (Method B)
- One ‘Pay What You Can’ performance is allowed each week and is valued at $12.50 per ticket
Repeat the calculation for each ticket price
Add all of the totals up to get Gross Box Office Potential

Calculate applicable deductions:

Method A: Senior and Student Discount — Gross Box Office Potential x 10%
OR
Method B: Subscription Adjustment — a discount based on the previous season’s subscription revenue and a comparison of the number of productions in last season versus this season
Federal and provincial taxes
Entertainment tax
Capital Improvement Fund surcharge (applies only for a rented venue that has applied the cost to tickets, must be approved by Equity, and requires a copy of the rental agreement)
3rd party ticket surcharge (Equity must see third party agreement)

Gross Box Office Potential minus total deductions equals Net Box Office Potential.

Based on the ranges provided in the ITA Fee Booklet, Net Box Office Potential determines the Theatre’s Company Category.

In advance of increasing ticket prices, increasing seating capacity (in one or more venues), or mounting a production in a new venue, you must provide an updated Company Category Calculation to Equity.

Engagement Weeks and Insurance

Posting of Security