New York, NY (PRWEB) November 23, 2014 -- Spectator Sports in Canada entertains millions of consumers on an annual basis, and the diversity of the industry's offerings helps stabilize its performance. “There are few organizations that can generate significant revenue, such as the Canadian Football League and the National Hockey League, and the majority of industry operators are small operations that provide sport entertainment on local or regional levels,” according to IBISWorld Industry Analyst James Crompton. In the five years to 2014, industry revenue is projected to increase at an annualized rate of 1.5% to total an estimated $2.8 billion.
The diversity of spectator sports helps insulate the industry from external shocks, and as a result, spectator sport operators performed relatively well during the recession. “Consumers' disposable income and leisure time preferences can impact the industry, but the popularity of sports helps bolster operators during times of economic duress,” says Crompton. Per capita disposable income is projected to increase at an annualized rate of 0.5% in the five years to 2014, and industry revenue is expected to increase 1.2% in 2014, as economic conditions continue to improve.
Online media platforms have helped bolster the industry's profitability over the past five years, and moving forward, IBISWorld expects sporting events to increasingly be distributed via online channels. The number of fixed broadband connections is projected to increase at an annualized rate of 2.4% over the five years to 2019, and operators will likely continue to push for additional revenue streams via advertising and online content. Over the five years to 2019, industry revenue will increase at an annualized rate of 2.6% to total an estimated $3.2 billion. For example, the National Hockey League (NHL), the most significant association in terms of revenue generation in Canadian spectator sports, offers online streaming of games. IBISWorld expects other sports will begin to provide subscription based content to consumers, which helps mitigate the effect of rising ticket prices. As teams invest in venues and teams, ticket prices tend to rise as well. Furthermore, Canadian teams in the NHL enjoy above average ticket sales revenue, as the popularity of the teams helps them consistently sell out events. Over the next five years, this trend will likely continue, and other sports, such as football and basketball, will likely expand their presence in the industry.
For more information, visit IBISWorld’s Spectator Sports in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry comprises sports teams or clubs that participate in live professional or semiprofessional sporting events (e.g. baseball, basketball, football, hockey, soccer and other team sports) before a paying audience. The sports franchises included in this industry may or may not operate their own facilities for presenting games or other spectator sports events.
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About IBISWorld Inc.
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Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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