Nobody knows for certain whether the Sphere in Las Vegas is making any money. Its first revenue report was not pretty and led to a shakeup within the company, but the jarring numbers didn’t reflect reality because the venue had only opened two days prior to the end of the quarter.
We will learn more early next month when Sphere Entertainment Co. is expected to release additional earnings. It said in early December that it “expects its Sphere segment to report positive adjusted operating income for the current quarter.” Things will look much better in the upcoming report simply because the last one was so bad.
However, questions continue to loom about financial stability.
U2’s residency continues to sell out every night. Reviews of the venue continue to rave about the mind-blowing immersive visuals and incredible performances.
Meanwhile, though, Sphere officials remain hushed about advertising revenue. They have not provided any insight into the success of the partnership with Formula One. There has been no indication as to whether companies that have advertised on the LED exosphere have seen a return on investment.
CES took place in Las Vegas last week. It one of the largest and most important conferences in the technology world. The Sphere was not involved with the event at all, which feels like a huge miss.
Gary Shapiro, president and CEO of the Consumer Technology Association, did not work with the world’s most viral venue because it was too expensive. Did other companies feel the same?
As these questions continue to swirl, the venue quietly increased the cost to see Darren Aronovsky’s film ‘Postcard From Earth,’ which is part of something called the ‘Sphere Experience.’ It used to cost anywhere between $49 and $69. Not anymore!
The worst seats at the Sphere cost $79. Most tickets hover around $119. And that doesn’t include fees.
A family of four cannot see ‘Postcard From Earth’ for less than $300. That is the get-in price for terrible seats without parking and concessions.
For Sphere to bump the cost by such a large margin surely can’t be a good sign, right?
We will find out more about the Sphere and its finances in early February. It could be very telling about long-term sustainability and success!