Increased sports broadcasting and media coverage will lead to steady industry growth
Los Angeles, CA (PRWEB) April 09, 2012
The Racing and Individual Sports industry has given supporters plenty to cheer about during the past decade. With a vast increase in media exposure to meet the demands of die-hard sports fans, the industry seemingly lacked a ceiling. “Individual sports icons, such as Tiger Woods and Serena Williams, have propelled their respective sports' popularity,” says IBISWorld industry analyst Radia Amari. As such, these sports have been able take some attention away from highly popular team sports in the United States. The level of earnings from endorsements, sponsorships, winnings and contract signings account for the vast majority of revenue, which can increase or decrease significantly year to year based on a number of factors. However, any such swings will not likely alter this fragmented industry's low level of concentration.
When income and spending dropped in late 2008 through 2010, though, attendance at industry events and, subsequently, media revenue experienced major pains. The economic downfall particularly hurt less popular sports, and these events struggled to compete with the likes of football and baseball; equestrian racetracks suffered significantly. Such establishments make the bulk of their revenue from wagering, says Amari, but even frequent gamblers largely ceased their habits due to economic uncertainty. While Racing and Individual Sports industry revenue declined 5.1% in 2009 and kept falling in 2010, the industry has managed to squeak out with limited losses since 2007. Over the five years to 2012, IBISWorld estimates industry revenue has decreased at an average annual rate of 0.1% to $12.7 billion.
Essentially, higher demand for sports broadcasting in the United States has increased media coverage of this industry's activities. As such, IBISWorld projects the industry will grow at a steady pace through 2017. Racetracks will always find a way to cater to their consumer base as gambling continues to grow in popularity; according to the National Council on Problem Gambling, an estimated 15.0% of the US population gambles on a weekly basis. Meanwhile, as the economy continues to recover, consumers will feel more at ease paying admission costs to sporting events, and sponsors are forecast to steadily resume their investments in professional sports through 2017. For more information, visit IBISWorld’s Racing and Individual Sports report in the US industry page.
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IBISWorld industry Report Key Topics
This industry includes racetrack operators and professional or semiprofessional sports teams and athletes who participate in live sporting events before a paying audience. Industry participants include sports clubs like auto racing teams, sports trainers like referees and athletes like boxers, wrestlers and figure skaters. This industry excludes agents and managers who represent sports figures.
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.