In the zone: Revenue from advertising and online content will maintain industry growth

The Spectator Sports industry entertains millions of consumers on an annual basis, and the diversity of the industry's offerings typically helps stabilize its performance. There are few organizations that can generate significant revenue, such as the Canadian Football League and the National Hockey League (NHL), and the majority of industry operators are small operations that provide sport entertainment on local or regional levels. Over the five years to 2018, industry revenue experienced slight volatility, due to a sizeable revenue decline in 2013. This downturn was a result of the NHL lockout, which shortened the regular 2012-2013 season. Fewer games equated to lower ticket sales, which hurt industry more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Online media platforms will continue to help bolster the industry’s profitability
  • Media revenue accounts for about one-third of overall income for professional sports franchises
  • Investment in stadiums and arenas has been, and will continue to be, a major industry trend
  • Industry Report - Industry Locations Chapter

    The geographic distribution of operators in the Spectator Sports industry in Canada largely revolves around the most populous regions of Canada. Geography is pivotal in determining the anticipated fan base and demographics, as well as the media market and corporate sponsorship. For this reason, major league sports are based almost exclusively in higher-populated metropolitan areas.Ontario and QuebecTogether, Ontario and Quebec make up more than 60.0% of industry establishments, with 42.7% and 22.4%, respectively. These regions are also the most densely populated provinces in Canada, thus they are the most attractive areas to operate sporting events and professional teams. Cit...purchase to read more.

    Additional Insights for the Spectator Sports Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Spectator Sports Industry are

  • Ability to attract local support/patronage
  • Ability to raise revenue from additional sources
  • Having market expertise
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Leisure time in the Spectator Sports industry impact industry performance..

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    What's in this report

    What is the Spectator Sports Industry?

    This industry comprises sports teams or clubs that participate in live professional or semiprofessional sporting events (e.g. baseball, basketball, football, hockey, soccer and other team sports) before a paying audience. The sports franchises included in this industry may or may not operate their own facilities for presenting games or other spectator sports events.

    Industry Products
  • Ticket sales
  • Broadcasting and other media rights
  • Advertising
  • Concessions and merchandise
  • Industry Activities
  • Providing sporting entertainment
  • Selling tickets to sporting events
  • Selling advertising
  • Selling media and broadcasting rights
  • Selling concessions
  • Selling merchandise
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Leisure time
  • Number of households earning $100K or more
  • Number of fixed broadband connections

  • Current Performance
  • Ticket sales and revenue
  • Media frenzy
  • High wages for pro athletes
  • Chart: Revenue Growth

  • Industry Outlook
  • Capital investments on the rise
  • Internet media changes the game
  • Athletes get richer
  • Table: Spectator Sports Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Spectator Sports Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Concert & Event Promotion in Canada
  • Food Service Contractors in Canada
  • Online Event Ticket Sales in Canada
  • Property Management in Canada
  • TV Broadcasting in Canada

  • Products & Services
  • Other
  • Ticket sales
  • Broadcasting and other media rights
  • Advertising
  • Concessions and merchandise
  • Chart: Spectator Sports Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 54
  • Consumers aged 55 and older
  • Consumers aged 18 to 34
  • Consumers aged under 18
  • Chart: Major Market Segmentation for the Spectator Sports Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Labour
  • Rent and depreciation
  • Purchases
  • Marketing and other
  • Chart: Cost Structure Benchmarking – Sector vs Spectator Sports

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Spectator Sports Industry

  • Industry Globalization
    Montreal Canadiens, Toronto Maple Leafs,
  • Table: Montreal Canadiens - financial performance
  • Table: Toronto Maple Leafs - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Spectator Sports Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Spectator Sports Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A money-sharing agreement where franchises are required to pool a specified portion of their media revenue to be distributed evenly among all teams.
  • Salary Cap
  • A ceiling amount for a team's athlete payroll imposed by the professional sports league to preserve a level playing field.
  • Sports Participation Rate
  • The number of people in the population that plays at least one sport.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Spectator Sports market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Spectator Sports:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Spectator Sports market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Spectator Sports, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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