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 employee 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
Aug 12, 2024 - StubHub Faces Lawsuit Over Alleged Deceptive Pricing Tactics
- Ticket reseller StubHub has been accused of deceptive pricing and junk fees in a lawsuit filed in July 2024 by Washington, DC, attorney general Brian Schwalb, who alleges the company violated the Consumer Protection Procedures Act, according to Variety. The company has been accused of using a predatory pricing model to illegally boost profits, selling 4.9 million tickets and generating $118 million in hidden fees in Washington, DC, since 2015. The lawsuit alleges StubHub uses a drip pricing method, which involves advertising low prices that become inflated by hidden fees at the point of purchase. The lawsuit also says the reseller creates a false sense of urgency and demand through its countdown timer, which gives consumers 10 minutes to complete their purchase. StubHub disputes the claims, saying its practices are consistent with the law, its competitors’ practices, and the broader e-commerce sector. StubHub is owned by international ticketing company viagogo.
- Consumer confidence levels rose in July 2024, after a decrease in June, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.3 in July 2024 from 97.8 in June 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those 55 and older in July. Those in the income category of over $100,000 were the most confident on a six-month moving average basis. Plans for large appliance and smart phone purchases increased on a six-month basis, while plans for home purchases fell to a 12-year low.
- In July 2024, Ticketmaster announced the launch of an integration with music identification app Shazam, allowing fans to see where the artist is playing in concert and buy tickets after they Shazam a track, according to Pollstar. Bands can connect their tour dates in the Shazam app, allowing the upcoming performances to pop up. Ticketmaster said its research showed that 42% of fans reported not attending a concert because they did not realize it was happening. According to music consultancy Music Ally, integrations with other apps have become an important part of business for Ticketmaster, which has also partnered with TikTok, Snapchat, and Spotify.
- The COVID pandemic hit live entertainment particularly hard. Pent up demand after two years of darkened stages led to a roaringly successful 2023, the industry's best year ever to the tune of $9 billion globally for the top 100 touring acts - an increase of 46% year over year. Massive, lengthy, and high-priced tours from megastars like Taylor Swift and Beyoncé drove most of the business. A cyclical industry that depends on the popularity of performers on tour, promoters might have a hard time matching the same success in 2024.
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