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
Oct 18, 2024 - Prices Up for Concerts, Sporting Events
- The price of admission to concerts, movies, and theaters was 2.6% higher in September 2024 compared to the previous year while the price of admission to sports events was up 10.3% during the same period, according to the Consumer Price Index by the US Bureau of Labor Statistics (BLS). Compared to the previous month, admission prices for sporting events were up 10.9% while admission prices for concerts, movies, and theaters were down 1.3% in September 2024. Employment by arts and sports promoters and agents and managers for public figures increased 5.7% in July 2024 compared to a year ago, according to the BLS. Employment has grown 11% from pre-pandemic levels. Average wages for nonsupervisory employees in the industry rose 2.6% in July 2024 year over year, reaching $26.01 per hour. Consumer spending, a key driver for the industry, has improved modestly, rising 2.6% in June 2024 compared to a year ago and up 0.2% from the previous month, according to the Bureau of Economic Analysis.
- 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.
- 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.
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