Promising performance has led to thousands of new promoters entering the industry
Los Angles, CA (PRWEB) September 01, 2013
Operators in the Concert and Event Promotion industry assemble and market a variety of events, ranging from music concerts (which generate more than half of total industry revenue), theatrical performances and specific sporting events, such as boxing, wrestling and rodeos. Team sports, individual sports, sports franchises and racing events are not included in this industry. “The success of promoters depends on the willingness of consumers to pay for and attend events,” says IBISWorld industry analyst Jeremy Edwards. Whether the economy is booming or experiencing a downturn, Americans have shown that they value live entertainment. This is evident in the fact that industry revenue is expected to grow an annualized 1.3% to total $23.7 billion over the five years to 2013, including a 3.5% increase in 2013.
Despite the recent economic downturn, the Concert and Event Promotion industry’s promising performance over the past decade has led to thousands of new promoters entering the industry. “With nearly 50,000 event promoters in the United States, the industry is extremely fragments, with the majority of promoters having a limited geographic reach and very few employees,” says Edwards. Indeed, the industry’s four largest companies combined for less than 25% of industry revenue. The industry’s largest player, Live Nation Entertainment, has been quite successful over the past five years because it has consolidated its position in the industry through mergers and acquisitions, most notably 2010’s merger with Ticketmaster. Meanwhile, the number of small promotion companies has grown significantly over the past five years, spurred on by the rise of social networking sites, which have revolutionized the process of targeting key customers and communicating directly with them.
The increase in industry operators has been further supported by the ease of starting a promotions company, especially for firms that rent facilities rather than own them. The vast majority of promoters already fall into this category, and the number of new firms that rent facilities has tipped the balance even further. Venue ownership does provide a substantial boost to profit margins, however. Over the next five years, industry revenue is projected to continue growing, driven by rising discretionary spending and corporate profit. Broadening ticket price options are also expected to drive attendance for events, and therefore, increase ancillary spending on parking, merchandise and value-added extras (e.g. VIP packages and event recordings). During this time, industry profit margins are expected to expand, even for smaller industry operators.
For more information, visit IBISWorld’s Concert and Event Promotion in the US industry report page.
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
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