SPORTS, ART & ENTERTAINMENT
The US arts, entertainment, and recreation sector include about 107,000 establishments with combined annual revenue of about $240 billion.
Sectors within the industry include arts, entertainment, recreation, gambling, health and fitness centers, spectator sports, and amusement parks.
The companies holding the largest market share in the industry include Creative Artists Agency (CAA), Las Vegas Sands, Live Nation Entertainment, the New York Yankees, the Smithsonian Institution, and Walt Disney Parks and Resorts.
2020 presented unprecedented challenges to the industry due to COVID-19, with nationwide closures or operations open but with very limited capacity. Many operators have permanently shut down, furloughed workers to cut costs, or pivoted operations in response to the pandemic.
TRENDS & CHALLENGES
While closures are still affecting the sector in 2021, advancements in consumer electronics have given rise to a growing list of at-home entertainment options (smartphones, tablets, gaming consoles, video streaming services, and social media) competing directly with live offerings at significantly lower operating costs.
The younger demographic is eager to adopt technology to have fun and stay busy, luring them away from screens, amusement parks, arcades, museums, and other institutions offering live entertainment.
With most events canceled or postponed, many operators have introduced online offerings, virtual tours, online classes, and streaming services in order to curb revenue losses.
Over the five years, the industry of arts, entertainment, and recreation is expected to rebound strongly as external drivers that dampened revenue growth over the five years to 2021 will recover. Due to the discretionary nature of the experiences offered by sector establishments, demand generally follows trends in the macroeconomic climate and available leisure time. This indicates that as consumers have more free time and income to spend on entertainment and recreational experiences, they become more likely to splurge at sector establishments, benefiting sector revenue.
The conversion to digital media offerings will continue to expand as the industry finds ways to curb future disaster events.
Disclosure: These key performance indicators are based on industry averages for a company with $10 million in revenue. The KPIs are not specific to the operational performance of your company or your sub-sector.
The information contained has been obtained from different sources deemed reliable, including DealStats, Deloitte, Dun & Bradstreet, and Business Reference Guide. Pacifica Business Brokers, Inc. does not make any representation or warranty as to the accuracy of the data. PBB is a mergers and acquisitions (M&A) advisor and business broker.