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
Dec 14, 2024 - Steady Growth in Worldwide Live Entertainment Market in 2024
- The live entertainment industry saw steady growth in 2024, as the industry showed stability following several years of rapid growth as people flocked back to live events after the COVID-19 pandemic, according to the Pollstar 2024 year-end analysis. According to 2024 data from the Worldwide Top 100 Tours, there was a 5.7% increase in the volume of shows reported, a 3.9% rise in the average ticket price to $135.92, and a 3.6% increase in total grosses to $9.5 billion. Meanwhile, other metrics saw relatively small declines including total ticket sales, average ticket sales, and average gross in 2024 compared to 2023. In North America, the Top 100 Tours grossed $6.1 billion in 2024, a decrease of 6.7% in the prior year. Two of the top tours of all time were out on the road in 2024; Taylor Swift’s “The Eras Tour” has grossed an estimated $2.2 billion, while Coldplay’s “Music of the Spheres World Tour” has grossed $1.1 billion with a 2025 leg remaining. Even with a robust year in many aspects, the industry saw the highest number of festival and tour cancellations in 2024 since the 2020 pandemic shutdown and the Great Recession (2007-2009).
- Consumer confidence levels increased in November 2024, improving by 2.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 111.7 in November 2024 from 109.6 in October 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “Consumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years.” Purchasing plans for homes stalled while plans to buy new cars rose slightly in November 2024 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.
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