LIVE MARKETS-Live entertainment emerging as winner in streaming era
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LIVE ENTERTAINMENT EMERGING AS WINNER IN STREAMING ERA
In a digital world where entertainment is just a tap away at home, do people still crave the thrill of live spectacle and value shared experiences?
UBS believes they do. In a recent note, the brokerage said it remains constructive on the long-term outlook for US live entertainment and sports, with both categories growing faster than total personal consumption expenditures (PCE).
In the second quarter of 2026, spending on live entertainment rose 15% year-over-year, while spectator sports spending climbed more than 20%, far outpacing PCE growth of roughly 6%, according to US Bureau of Economic Analysis data.
The combined US spending on live entertainment and spectator sports now exceeds $100 billion annually.
"We expect the category to continue outpacing overall household spending over the medium term, supported by pricing power, premiumization, sponsorship growth, media monetization, and related travel expenditures," UBS said.
The audience profile is another tailwind. Live-event consumers tend to be younger and more affluent demographics that have historically shown stronger spending power and more durable demand, the brokerage noted.
UBS also points to broader cultural changes. Streaming has created a richer and more diverse entertainment landscape, but one that is less universally shared. With fewer people watching the same shows and films together, consumers may be placing greater value on real-world shared experiences.
The brokerage notes that trend has also been reflected in media stocks. IMAX IMAX.N dramatically outperformed Netflix NFLX.O over the past year, with the cinema operator rising about 45% in 2025, compared with a little more than 5% for the streaming giant. The divergence continued in 2026.
Among public companies, UBS highlighted Live Nation LYV.N as the dominant player in the live-entertainment industry and Sphere Entertainment SPHR.N, whose Las Vegas Sphere venue represents an emerging immersive-entertainment model, as among beneficiaries of growing demand for event-style entertainment.
(Ragini Mathur)
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