The experience economy is a blockbuster phenomenon

{"text":[[{"start":3.25,"text":"It’s an Odyssey, not a sprint. Hollywood moguls have this week made epic bets that consumers will continue to prize live experiences such as musicals and live sports. "}],[{"start":14.95,"text":"Ari Emanuel paid £4.5bn for ATG Entertainment, a 70-strong portfolio of theatres whose West End and Broadway properties host shows including Wicked and The Lion King. They join a portfolio that includes the Frieze art fairs and tennis tournaments. Meanwhile, former Disney boss Bob Iger and friends shelled out $12.5bn for the Los Angeles Lakers."}],[{"start":41.099999999999994,"text":"These are bullish bets indeed. Emanuel, a longtime believer in the prospects for live events, is paying over 20 times adjusted ebitda for the year ending March 2025, according to ATG’s filings at Companies House. The Lakers’ sale fetched a record amount for a sports team. "}],[{"start":59.24999999999999,"text":"Live, shared events are increasingly popular. Fans forked out record amounts for tickets to World Cup matches. Cinema’s summer too supports the idea that people are willing to go out given a reason — and not just air-conditioned shelter from record temperatures. More than $600mn was spent in US cinemas in the week to August 6 according to Box Office Mojo — triple the average since the 2020 pandemic. Spider-Man: Brand New Day accounted for the bulk of the takings, ending two weeks at the top for The Odyssey. "}],[{"start":90.14999999999999,"text":"More broadly, US spending on recreational services has risen by two-thirds in the past 10 years, according to the US Bureau of Economic Analysis. Inflation only accounts for just over half of that. Global spending on live, shared events is forecast to grow at an annual 5 per cent clip though to 2030, according to consultancy PwC. "}],[{"start":null,"text":"

"}],[{"start":111.54999999999998,"text":"The popularity of live outings is particularly welcome for cinema operators such as heavily indebted AMC, owner of the largest US cinema chain as well as the Odeon in the UK, which have never fully recovered from pandemic closures as well as the success of at-home streaming. Last month AMC reported record quarterly revenues and profits, on an adjusted ebitda basis, and longtime boss Adam Aron confidently predicted more of the same. Paramount Skydance, keen to close its merger with Warner Bros, is reportedly promising the combination will release 30 movies per year. "}],[{"start":148.14999999999998,"text":"The so-called “experience economy” has extra appeal for investors as a potential haven from the risk of AI disruption. But, while the overall numbers are positive, they have been driven by a smaller number of prized outings. Audience growth has fallen behind ticket sales in three out of the last four Broadway seasons, for example. A sustained recovery in smaller jaunts would, at the very least, reduce concentration risk for the wider entertainment industry. "}],[{"start":182.39999999999998,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1786769417_6717.mp3"}