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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Jul 15, 2024 - Employment, Labor Costs Up
                              • Employment by arts and sports promoters and agents and managers for public figures grew during the first five months of 2024 year over year except for a slight downturn in February, according to data from the US Bureau of Labor Statistics. Average wages for nonsupervisory employees in the industry increased in May 2024 year over year to $26.80 an hour, following YOY declines at the beginning of 2024. Sales for the industry are forecast to grow at a 5.7% compounded annual rate from 2024 to 2028, faster than the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
                              • 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.
                              • The US Justice Department filed an antitrust lawsuit against LiveNation in 2024. The company controls almost 80% of the US ticketing market and has long been accused of squashing competition. The case centers on accusations of inflated ticket prices, poor or misleading customer service, and cutting out non-Live Nation ticket sellers for its events.
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