Performing Arts Groups

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 9,500 performing arts groups in the US produce live presentations by a variety of artists, including actors, singers, dancers, and musical groups. The industry includes theater companies and dinner theaters; dance companies; musical groups and artists; and other types of performing arts groups. Major revenue sources include admission fees; contracts for performances; contributions, gifts, and grants; and investment income.

Competition From Alternative Entertainment

Performing arts groups compete with a variety of alternative forms of entertainment, including movies, television, sporting events, and digital media.

Industry size & Structure

The average performing arts group operates out of a single location, employs about 14 workers, and generates $1.7 million annually.

    • The performing arts industry consists of about 9,500 groups that employ 134,000 workers and generate about $16.2 billion annually.
    • The industry is fragmented; the top 50 companies account for 32% of industry revenue.
    • The majority of firms operate within a limited geographical market. Large organizations include the Metropolitan Opera Association, the "Big Five" orchestras (New York Philharmonic, Boston Symphony Orchestra, Chicago Symphony Orchestra, Philadelphia Orchestra, and Cleveland Orchestra), Feld Entertainment (Ringling Brothers), and Cirque du Soleil based in Canada.
    • Theater companies account for about 36% of firms and 48% of industry revenue. Musical groups and artists account for about 54% of firms and 37% of industry revenue. Dance companies and other groups account for about 10% of firms and 5% of industry revenue.
    • New York City is considered the center of the US theater industry.
                                  Industry Forecast
                                  Performing Arts Groups Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Sep 23, 2024 - Admission Costs Rise
                                  • Admission to movies, theaters, and concerts rose 3.4% in October 2024 compared to a year ago and were up 0.9% from the previous month, according to the Consumer Price Index from the US Bureau of Labor Statistics. Employment by performing arts groups rose almost 2% in September 2024 compared to a year ago, according to data from the BLS. Average wages for nonsupervisory employees in the industry grew 5.7% in September 2024 year over year, reaching $34.41 per hour.
                                  • Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September. Fourteen of the 18 services industries reported growth in October including Retail Trade; Information; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; Construction; Mining; Public Administration; Utilities; Real Estate, Rental & Leasing; Educational Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Wholesale Trade. Industries reporting a contraction in October were Other Services; and Management of Companies & Support Services. Fifteen of the 18 services industries reported an increase in prices paid during the month of October, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries.
                                  • Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
                                  • The arts and cultural industries sector contributed 4.3% of gross domestic product, totaling $1.1 trillion, to the US economy in 2022, which is an all-time high, according to recent data released by the Arts and Cultural Production Satellite Account (ACPSA), a product of the National Endowment for Arts and the Bureau of Economic Analysis. The overall arts economy grew by 4.8% in inflation-adjusted dollars between 2021 and 2022, a growth rate higher than the US economy during the same time frame. Some segments of the arts industry have not fared as well; the report cited performing arts organizations, non-government museums, and arts-related construction as examples of industries that have yet to reach their pre-pandemic levels of economic value. Total arts and cultural employment recovered to pre-pandemic levels in 2022, reaching 5.2 million workers.
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