Amid rising ticket prices and booming concert business, touring musicians are becoming the breadwinners for arenas, which are increasingly turning away from sports as a revenue generator, Wall Street Journal reports.
Live music is a growing industry that’s expected to balloon to a $38 billion industry by 2030, from about $28 billion currently. In the first half of the year, the top 100 North American tours grossed 14% more than in the same period last year, according to trade magazine Pollstar.
And an arena can generate twice as much net income from hosting a concert than an NBA or NHL game. Without professional sporting teams to schedule around, arenas can have up to 40 additional days for concerts.
One company that’s seeing concerts pay off is Madison Square Garden Co. In 2014, the company renovated the Forum in Los Angeles, the former home of the NBA’s Lakers and NHL’s Kings, turning it into a concert facility. Since opening, the renovated facility has consistently ranked as one of the top-grossing music venues in the U.S.
Los Angeles-based Oak View Group, an entertainment and sports-facilities company backed by private-equity giant Silver Lake, is set to develop eight new arenas over the next three years for $3.9 billion, six of which will forgo major-league sports teams largely to keep their calendars clear for concerts. Read the full story.
