Live entertainment emerging as winner in streaming era
XLY•US live entertainment spending rose 15% year over year in the second quarter of 2026, while spectator sports spending increased more than 20%, outpacing roughly 6% growth in personal consumption expenditures. Combined annual US spending on live entertainment and spectator sports exceeds $100 billion.
1. Spending growth outpaces PCE
UBS 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. In the second quarter of 2026, spending on live entertainment rose 15% year over year and spectator sports spending climbed more than 20%, compared with roughly 6% PCE growth, based on Bureau of Economic Analysis data.
2. Shared experiences draw audiences
UBS expects the categories to continue outpacing overall household spending over the medium term, citing pricing power, premiumization, sponsorship growth, media monetization and related travel expenditures. The brokerage said live-event consumers tend to be younger and more affluent, and that streaming's varied entertainment landscape may increase the value people place on shared real-world experiences.
3. Companies highlighted
UBS identified Live Nation as the dominant player in live entertainment and Sphere Entertainment as a beneficiary of demand for event-style entertainment. IMAX rose about 45% in 2025, compared with a little more than 5% for Netflix, and the divergence continued in 2026.
