Investment of £41,000 into Hunstanton’s Princess Theatre is planned to create a new exterior terrace and bar area with a sea view.
There are also hopes of providing a satellite projector to allow live showings of operas and shows as they happen in other venues.
Brian Hallard, one of a consortium of business people who now run the theatre, said: “This is a positive step forward for the theatre, being the main attraction in the middle of the town.
“The message seems to be getting across and people are coming to a wide range of shows.
“It is all looking positive and with this investment that the council is going to make as well that’s great.”
Mr Hallard said the plans, both for the building works and live streaming of shows, are yet to receive formal approval from the correct authorities to go ahead, but if all goes well he hoped they could be in place as soon as May.
West Norfolk Council has built £41,000 into its budget for the year to pay for the improvements.
The theatre currently has an outdoor seating area at the front, but it is split by three steps and it is not visible from inside. It is hoped that glazed doors can be put into the front of the building to make the most of the view from inside and the steps removed to make the outdoor area more accessible to all.
Hunstone Productions took over management of the theatre in May 2012. It is made of Hallard Entertainments, Searles Leisure Resort, International Music and Leisure and James Johnson and Co Accountancy.
It took over after West Norfolk Council, which owns the building, pulled out of running the theatre to save £300,000 a year. The council pulled out in 2010 and the theatre was initially rented to C and R Cinemas, who backed out in 2011.