Cirque Du Soleil

Different changes occurred after World War II, such as the increase in competition and market share of television and movies-perfect substitutes for a circus show-, the boost of costs of moving an producing a circus show, the difficulty to find open spaces closer to the cities, and the rising in labor that developed the necessity of creating new value for the circus- like Ringling Brothers & Co. 

The classic circus presented the three-ring format, where the visual from the audience was a concerned, but they became creative, colorful and oversized costumes, looking to be more appealing to buyers. Acts were performed by individuals and animals. Since early starts, the names of star performers were announced in newspaper ads and individual acts where hired by subcontractors. They performed from early spring to late fall, and a show tour would last for no more than a year. In the case of Ringling Brothers & Co, they extended the tour for two years, but still presenting a new show each year. In addition of regular workforce local people where hired, in order to decrease the cost of roustabouts. Revenues were based on two main sources: ticket sales and concessions -20% of revenues-, but they created value offering complementary products and seat sales ended representing the most important source of income. Because children and families where the target, some circus provided free tickets to kids, which were the influencers of the adults-the buyers. Total revenue was calculated in 1997 between US $50,000 and $1,000,000 per year.

Cirque du Soleil, differs from a traditional circus. It also offers permanent shows in special theaters. There is no three-ring format, this circus use an stage. They created a new value curve improving functional-emotional orientation through a new concept: circus act and street entertainment, bringing harmony and offering intellectual components in the production, the music drives the show, light, timing and performance. To increase the...