Profitability The same cast of characters could dampen industry profits, but smart industry players will find ways to prosper. If 2024 was the Year of the Comeback, then 2025 is poised to be its much-anticipated sequel as the demand for live events continues to drive revenue in the entertainment and sports sector. Worldwide revenues for live events is expected to exceed $85 billion, and $96 billion in the next four years.2 Powered by the industry’s successful post-pandemic cord” with their traditional cable subscription services by rebound, this trajectory is also coupled with the public’s 2026 for on-demand streaming services, such as Netflix, quest for experiences that only live, in-person events and 7 Hulu and Disney+. immersive technology can offer. Global entertainment and sports revenues are expected to reach $3.4 trillion by Yet forward-thinking entertainment operations can 3 overcome obstacles to profitability with a thoughtful risk 2028. Live Nation, the parent company of Ticketmaster, reported revenues of $9.8 billion for the first half of 2024, management plan, adequate insurance to protect their a 12% increase from the same period in 2023, and expects bottom line and an experienced broker with a proven 10% growth in 2025.4,5 network of carrier relationships. However, threats to profitability loom. Catastrophic weather continues to wreak havoc on live events, causing 2. Statista, "Event Tickets - Worldwide," March 2024. cancellation insurance premiums to triple.6 Another issue 3. PwC, “Seizing growth opportunities in a dynamic ecosystem,” July affecting profitability is mandatory insurance stipulations 16, 2024. to ensure crowd safety management, emergency 4. Live Nation, “Live Nation Entertainment Reporters Second Quarter 2024 Results,” July 30, 2024. evacuations and other security protocols. 5. Investing.com, “Earnings call: Live Nation reports growth, optimistic about future venues,” July 31, 2024. Elaborate and complex staging, lighting and sound 6. Billboard, “Climate Change Has Caused Event Insurance Prices systems escalate production costs to new levels. And to Triple – and Indie Promoters Are Bearing the Brunt,” March 29, the lack of skilled professionals with industry-specific 2024. experience and knowledge adds another layer to risk. 7. SuperBox, “Cord Cutter News: Analyze, Forecast Potential and Trends,” May 22, 2024. Film and TV production find themselves stymied by new distribution channels and an uncertain technological future. An estimated 72% of U.S. households will “cut the 3