Promoters of Performing Arts and Sports Events
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 8,000 promoters of performing arts and sporting events in the US provide management, marketing, and event services for the live entertainment industry. Promoters may own their venues or provide promotion services to third-party facilities. Promoters organize and manage in-person entertainment including concerts, professional and amateur sporting events, stage performances, fairs, festivals, and other cultural entertainment. Promoters can also provide talent management services to artists.
Dependence on Popular Events and Acts
Promoters’ success depends largely on the quality and popularity of the artist, sports team, or event, leaving the industry highly susceptible to consumer tastes and trends.
Secondary Ticket Market Abuse
Ticketing services are largely secure and legitimate, but the secondary resale market is vulnerable to hackers, bots, and technology issues.
Industry size & Structure
The average firm employs fewer than 5 workers and generates $5 million annually.
- The live event and sports promotion industry consists of about 8,000 companies that employ 185,600 workers and generate about $42 billion annually.
- The industry is highly concentrated at the top with events giant Live Nation controlling almost 80% of the market.
- About 3,500 promoter firms also own facilities.
- Only about 65 companies have more than 500 employees.
- Large companies include Live Nation, Anschutz Entertainment Group, Madison Square Garden Entertainment Group and C3 Presents.
Industry Forecast
Promoters of Performing Arts and Sports Events Industry Growth
Recent Developments
Nov 18, 2024 - Rising Labor Costs, Employment
- According to data from the US Bureau of Labor Statistics, labor costs and employment increased for promoters of performing arts and sports events in September 2024 compared to a year ago. Employment by arts and sports promoters and agents and managers for public figures increased 11.5% in September 2024 compared to a year ago. Average wages for nonsupervisory employees in the industry rose 9.6% in September 2024 year over year, reaching $27.20 per hour. The price of admission to concerts, movies, and theaters was 3.4% higher in October 2024 compared to the previous year while the price of admission to sports events was up 6.9% during the same period, according to the Consumer Price Index. Compared to the previous month, admission prices for sporting events were up 0.4% while admission prices for concerts, movies, and theaters were up 0.9% in October 2024.
- 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 US promoters of performing arts and sports events industry is projected to grow at a CAGR of 5.7% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The industry’s expected growth rate is faster than the overall economy‘s anticipated growth. The report noted that consumer confidence is expected to improve in the forecast period, which bodes well for the arts, entertainment, and recreation industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest rate levels, and elevated price levels. Price growth, however, is diminishing and likely to stabilize soon near intended rates. According to the forecast, the Baby Boom generation’s retirement is expected to drive greater demand for many arts, entertainment, and various recreational activities. Promoters may want to focus on this segment as a potential opportunity for growth.
- According to Luminate’s 2024 Midyear Music Report, Gen Z spent the most on monthly live concerts in the second quarter of 2024, about 23% higher than the average US music listener’s spend. Gen Z spent about $38 per month, compared to the average listener’s spend of $31. Until Q2 2024, Millennials were the highest spenders on overall live music events. Driving Gen Z’s spending is higher spending for festivals. Gen Z reported spending an average of $23 per month on festivals, $10 higher than the average listener’s $13, during Q2.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.