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.
Advancements in consumer electronics have given rise to a growing variety of at-home entertainment options that compete with those offered by companies in the arts, entertainment, and recreation sector. Smartphones, tablets, gaming consoles, video streaming services, and social media have made it easier to stay busy and have fun without leaving the house. This is especially true of younger consumers, who represent a critical customer base for the industry. To lure people away from their screens, amusement parks, arcades, museums, and other institutions are investing in technology improvements to create novel experiences that cannot be replicated at home. Many organizations are also using sophisticated data analysis applications to improve efficiency and guide decisions on marketing and programming.
Products, Operations & Technology
Major industries within the arts, entertainment, and recreation sector include spectator sports (about 15% of US sector revenue), gambling establishments (10%), event promoters (10%), and amusement parks and arcades (10%). Other businesses include performing arts companies, fitness centers, golf courses, and museums. In addition to ticket sales and admissions fees, companies may earn revenue from 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.