Companies in this industry produce live presentations by actors, singers, dancers, musical groups, and other performing artists. Major companies include the Lyric Opera of Chicago, the Metropolitan Opera Association, The Public Theater, and the San Francisco Symphony (all based in the US), as well as Cirque du Soleil (Canada) and The Royal National Theatre (the UK).
Personal income and leisure time drive demand for performing arts. The profitability of individual companies depends on producing performances that audiences want to see and on efficient operations. Large companies have advantages in marketing, fundraising, and attracting star performers. Small companies can compete effectively by specializing in new, unique, or popular works. The US industry is fragmented: the 50 largest companies account for less than 30% of revenue.
Products, Operations & Technology
Major sources of revenue for the performing arts industry are admissions; entertainment contract fees; private contributions; royalty, licensing, and residual fees; and government grants. Admissions account for 45% of industry revenue; contract fees, 25%; and private contributions, 15%. Other revenue sources include food, beverage, and merchandise sales; facility rental; membership dues; and fees for entertainer management, advertising, and endorsements.