The first theater in London was built in 1576, the year Will turned 12. By the time he arrived in London a decade later, the theater business was undergoing a significant change. Because there was no competing form of public entertainment appealing to all segments of the society, theater was wildly popular. Although the plays initially performed on stage were fairly primitive, they grew quickly in sophistication. The first run-away hit was a play called "The Spanish Tragedy" by Kyd. It was a bloody story of murder and revenge, featuring a bunch of evil villains and a hero crazed by grief, a formula Shakespeare would use in plays like "Titus Andronicus" and "Hamlet."

Acting was becoming respectable, at least for some. Edward Alleyn, the lead actor in "The Spanish Tragedy," became the first matinee idol. Even the most rich and noble playgoers sought to meet Alleyn. He made a great deal of money from his acting, founded his own acting company and became one of Shakespeare's competitors. When he died, Alleyn left his fortune to endow a school for bright young boys from humble origins, like himself and Shakespeare.