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SOURCE: IBISWorld Inc.
Despite the economic downturn and low discretionary income, Americans continued to attend and spend at live events over the past five years; as the economy picks up in the next few years, industry growth will continue. For these reasons, industry research firm IBISWorld has updated a report on the Concert and Event Promotion industry in its growing industry report collection.
Los Angeles, CA (PRWEB) February 02, 2013
Operators in the Concert and Event Promotion industry assemble and market a variety of events, ranging from music concerts – which bring in more than half of industry revenue – theatrical performances (e.g. musicals and plays) and specific sporting events (including boxing, wrestling and rodeos). Team sports, individual sports, sports franchises and racing are not included in this industry. The success of promoters depends on the willingness of consumers to pay for and attend events. Throughout economic booms or busts, Americans have shown that they value live entertainment, whether it is a U2 concert, Wicked the musical, a boxing title fight or a local music festival. This fact has helped drive industry revenue growth at an estimated annualized rate of 1.3% to $23.7 billion over the five years to 2013. “Although many industry operators struggled over 2010 because of the still-lagging economy, the industry's performance stayed positive on average over the five-year period and is expected to benefit from the economic recovery and increase in consumer spending over the current year,” says IBISWorld industry analyst Radia Amari. As a result, industry revenue is projected to grow 3.5% in 2013.
Despite the economic downturn, the industry's promising performance over the past decade led to thousands of new promoters entering the industry in pursuit of a share of its growth. The number of businesses in this industry has risen at an average annual rate of 1.4% to 49,815 over the five years to 2013. Supporting this growth has been the ease of starting up a promotions company, especially for firms that rent facilities rather than own them. The vast majority of promoters already fall into this category and a disproportionate number of new renters have tipped the balance even further; however, venue ownership continues to provide a substantial boost to profit margins. Over the five years to 2018, industry revenue is projected to continue increasing. Growth over the period will be driven by broader economic recovery within the United States, marked by a rise in discretionary spending and corporate profit. Broadening ticket price options are also expected to drive attendance for events and, therefore, an increase in the amount of ancillary spending on parking, merchandise and value-added extras such as VIP packages and event recordings.
With nearly 50,000 event promoters spread throughout the United States, the Concert and Event Promotion industry is extremely fragmented. The overwhelming majority of promoters have a limited geographic reach and very few employees. In 2013, the industry's four largest companies are estimated to account for less than 25.0% of industry revenue. The number of nonemployer promoters and very small promotion companies has grown over the five years to 2013. According to Amari, this expansion has been brought on by an explosion of internet technologies that have made it easier for customers to learn about events, purchase tickets and spread information by word of mouth. Social networking sites, such as MySpace and Facebook, have revolutionized the process of targeting key customers and directly communicating with them. In contrast, the number of promoters with their own venues decreased slightly over the past five years. Barriers to entry are considerably higher for this segment because purchasing a stadium, arena or even a comedy club or theater necessitates financing, which became considerably harder to secure since 2008 due to the credit crunch. For more information, visit IBISWorld’s Concert and Event Promotion in the US industry report page.
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IBISWorld industry Report Key Topics
This industry creates, manages and promotes live performances and events, ranging from concerts and theater performances to state fairs and air shows. Some promoters lease space from stadium, arena and theater owners, while others own venues.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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