|SIC Codes:||7911 7922 7929 7933 7819 7389 7011 5812 4493 7941 8412 7999 7996 7993 7992 7991 7948|
|NAICS Codes:||712120 712130 712190 713110 713120 713210 713290 713910 713920 713930 713940 713950 713990 721120 712110 711510 711410 711320 711310 711211 711212 711219 711190 711130 711120 711110|
Companies in this industry sector produce or promote live entertainment and other events, operate amusement and leisure activity facilities, or preserve and exhibit objects and sites of historical or cultural significance. Major companies and organizations include Creative Artists Agency (CAA), Las Vegas Sands, Live Nation Entertainment, the New York Yankees, the Smithsonian Institution, and Walt Disney Parks and Resorts (all US-based); as well as Cirque du Soleil (Canada); Galaxy Entertainment (Hong Kong); the Louvre (France); Real Madrid (Spain); and UK-based IGT, Merlin Entertainments, and William Hill.
Demand is driven by consumer spending and leisure time, as well as demographics. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have advantages in purchasing and access to capital needed to construct leisure and recreation facilities. Small companies can compete effectively by catering to local tastes or offering unique experiences. The US industry is highly fragmented: the top 50 companies account for about 20% of revenue.
Major revenue sources within the arts, entertainment, and recreation sector include admissions fees for live performances, sporting events, museums, parks, and entertainment centers (about 15% of industry revenue); table wagering and other gaming (10%); fitness and recreation center services (8%); and golf courses and country club services (7%). Other sources of revenue include media broadcasting rights; sponsorships; and sales of concessions and merchandise. Government grants and private gifts are important sources of income for museums and other cultural institutions.