A large concert venue and theatrical experience in Las Vegas went viral in 2023 as it opened and hosted U2 concerts.
The venue is adding a new band to its future residency list and is poised to gain additional visibility from the heightened attention on Las Vegas during Super Bowl LVIII.
What Happened: In late 2023, the Las Vegas Sphere, which is owned by Sphere Entertainment SPHR, saw prominence during a Formula 1 race in downtown Las Vegas.
The venue also went viral thanks to unique ads and videos displayed on the outside of the building along with the high advertising costs. A report previously said that it costs $450,000 to advertise for one day on the outside of the Sphere or $650,000 for an entire week.
Anyone who thought those prices were high will want to look away as they hear that advertising the week of Super Bowl LVIII is set to cost up to $2 million for a rotating spot.
Sports reporter Joe Pompliano reported that the advertising rates go up as Super Bowl LVIII nears and all the ad slots are sold out. Ads on the Sphere typically are shown every couple of minutes for six to 12 hours. A report from PR Week said no more than two companies will appear on the Sphere on Feb. 11, the day of the big game.
Along with the potential increased exposure during Super Bowl LVIII week and increased advertising rates, Sphere and its investors may be "Truckin'" along for another reason.
Rumors of a reunion of Dead & Company at the Sphere have come to fruition, with the band appearing to confirm potential shows at the venue.
The band, which contains three previous Grateful Dead band members (Bob Weir, Mickey Hart, Bill Kreutzmann), and other musicians including John Mayer, completed a farewell tour in 2023. Kreutzmann did not tour with the band on the final outing.
"In 2023, Dead & Company played their final tour. But there are other ways to make sure the music never stops. And it's gonna be a ball," a video shared by the band said.
The video features the band's iconic "Steal Your Face" logo on the Sphere.
Related Link: 14 Years Of Ads: This Is How Long It Will Take Las Vegas’ $2.3B Sphere To Recoup Mega Investment
Why It's Important: The Sphere opened with concerts from U2, which helped bring increased attention to the venue and its uniqueness. The band has extended their run at the venue and will play through March 2024, with a total of 40 concerts.
The band Phish is set to play the venue April 18, 19, 20 and 21.
Sphere Entertainment reported first quarter revenue of $118.0 million, which was down 4% year-over-year. The company's revenue was made up of $7.8 million from Sphere and $110.2 million from MSG Networks.
For the Sphere segment, event revenue was $4.1 million, with advertising and suite license revenue coming in at $2.6 million.
It's important to note that the first quarter results had minimal exposure since the Sphere opened to the public. The second quarter numbers will include results of sold out U2 concerts and the October 2023 opening of "Postcard from Earth" from acclaimed director Darren Aronofsky.
Super Bowl LVIII could bring in huge revenue for the company from advertisers and also showcase the uniqueness of an ad campaign on the venue, which could prove to be a future catalyst.
Pompliano wrote that over 1,000 private jets are expected for Super Bowl LVIII. Flights into the city show off the lights of the Las Vegas Strip and the Sphere, which means it will be fans at home, fans attending the Super Bowl and celebrities flying into the city that will see whichever products and companies are advertised on the Sphere.
Sphere reports second quarter financial results on Monday, Feb. 5, the week of the Super Bowl.
SPHR Price Action: Sphere Entertainment shares were up 0.6% to $35.38 on Wednesday, versus a 52-week trading range of $20.68 to $43.93.
Photo: Shutterstock
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