The Wizard of Oz has become a financial success at Sphere Las Vegas, positioning the venue to become “the world’s most profitable entertainment destination,” according to Wolfe Research analyst Peter Supino.
The adaptation of the 1939 film, which opened on August 28, is generating an estimated $2m per day in ticket sales. With advanced LED displays, a custom sound system, and 4D effects, the Sphere offers a viewing experience drawing strong attendance.
Built at a cost of $2.3bn, Sphere is the most expensive entertainment venue in Las Vegas. Since opening, its financial outlook has been questioned, especially after an $83.4m operating loss reported by owner Sphere Entertainment Co. in the second quarter. The success of The Wizard of Oz has changed that view.
Wolfe Research reports that each showing draws 4,000 to 5,000 attendees, with tickets averaging nearly $200. With two to three screenings per day, the film is projected to gross hundreds of millions over the next year, and could reach $1bn, according to Bloomberg Screentime.
Supino estimates the film could contribute $500m in gross profit in 2026, with $200m in adjusted operating income. Films are now seen as more profitable than concerts for the venue. While concerts may generate $200m this year, films could bring in up to $400m, with gross margins near 70%, roughly twice that of live shows.
The production of The Wizard of Oz reportedly cost close to $100m. Sphere Entertainment Co. is now in discussions with studios including Warner Bros. and Disney to develop additional films suited to the venue.
“Movies at Sphere are proving to be not only artistically compelling but economically transformative,” Supino said. “The data suggests they will increasingly take the place of traditional concerts, due to higher margins and scalability.”
Sphere’s shift toward film could signal a broader change in how venues generate revenue and attract audiences.
Source: www.exhibitionworld.co.uk
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