Live event companies see momentum as experiences boom
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Live event companies are delighting Wall Street as the trend toward in-person entertainment continues to accelerate in the AI era.
Why it matters: The decline of appointment viewing has created a higher premium for events that can bring groups together for shared experiences.
- The scarcity tied to physical experiences, which are harder to mass-produce, has given venues more pricing power.
Driving the news: For the first time since the COVID-19 pandemic, the movie production pipeline has remained consistent and strong, leading to a wide array of genres attracting bigger audiences.
- Cinemark on Monday said it delivered its highest-ever domestic box office performance for May. "Backrooms" delivered its biggest horror opening day of all time last week, for example.
- AMC said last month was its highest-attended month of May since 2019, both domestically and globally.
- IMAX, which is reportedly eyeing a sale, posted a record global box office in 2025.
Between the lines: Premium experiences, like higher-quality seats, screens and snacks, are also helping to drive theatrical recoveries.
- Last month not only topped in ticket sales, but also represented Cinemark's highest-ever food and beverage per cap spend, the company said.
State of play: A focus on scarcity has helped venue companies with competitive pricing.
- Sphere, for example, saw revenue grow 69% year over year in the first quarter of 2026, thanks in part to concert residencies. Those numbers are helping fuel investor optimism around expansions planned in Abu Dhabi and National Harbor in D.C.
- While Madison Square Garden Entertainment will benefit from the Knicks playoff run this quarter, its growth is also tied to an increase in a broad array of live experiences unique to New York City, like The Rockettes.
Reality check: As mobile screen time continues to rise, brands are increasingly focused on live formats where attention is undivided.
- National CineMedia, the largest cinema ad seller in the U.S., can thank a stronger cinema ad market for helping it recover from its balance-sheet crisis that sent it into bankruptcy in 2023.
The bottom line: Investors are becoming more bullish on live events as in-home entertainment across streaming and gaming reach saturation points.
- Even Live Nation, which was found guilty of violating federal antitrust laws in April, has seen its stock increase 16% year to date.
