Sphere’s Success in Vegas Could Shape Its Global Future

 ^{The Sphere has sold more than 1.2 million tickets for “The Wizard of Oz.” (Photo: Courtesy of Sphere Entertainment)}

LAS VEGAS -- Business continues picking up at the Sphere. The financials for the entertainment venue just east of the Vegas Strip, behind The Venetian, continue to grow, and the future looks bright in Las Vegas and beyond.

While the company is still losing money, Sphere Entertainment is generating more revenue and greater profit, according to its recent quarterly earnings report. Tickets for the reimagined version of "The Wizard of Oz" continue to sell well and remain part of what could make the Sphere profitable moving forward.

During the call, Sphere Executive Chairman and CEO Jim Dolan shared how the Las Vegas entertainment venue and its technology are shaping the company’s future.

The Corporation Behind the Curtain

Las Vegas is the only Sphere location in the world for now, and it’s being used as a testing ground for future venues worldwide. A second Sphere was planned for London on a 4.7-acre site in Stratford. But the project was scrapped over local concerns about light pollution.

When the Vegas Sphere opened two years ago, the company thought its audiovisual technology would be its only calling card.

That’s no longer the case, however, as “The Wizard of Oz” -- which continues to fill 5,000 seats at the venue up to three times a day, generating roughly $2 million a day just in ticket sales -- has allowed Sphere Entertainment to showcase other technologies, including AI-driven visuals and 4D effects.  

With the success of the film and virtually every concert held at the Sphere so far, Dolan says he sees the Las Vegas location as being a testing ground for future venues worldwide. He was practically giddy on the earnings call when discussing Vegas.

“Las Vegas is a great market," Dolan said. "I'd love to clone that, with over 40 million visitors every year.”

Sphere Entertainment holds patents for more than 60 technologies for venue design, audio delivery, video capture, visual display and sensory experiences such as cool winds blowing and analog apples falling from the sky. "The Wizard of Oz" is showing proof of concept that the technology can work with the right product, whether it’s a concert or film.

Despite social media chatter that “Vegas is dead,” year-to-date visitation to Las Vegas is at 31 million people for this year. And based on data through September, visitation is projected to reach 40 million people by the end of the year.

'Wizard of Oz' 2.0 and Beyond

In the earnings call, Dolan compared the long-term potential of "The Wizard of Oz" to Cirque du Soleil’s O show at Bellagio, which has run nearly 30 years (actually 26, but we'll let it slide) and many of the 1.4 billion visitors over the years have seen essentially the same show with minor updates. 

He believes "The Wizard of Oz" can have similar staying power and will continue to run as long as there’s demand and ticket sales remain strong. In October, the company announced that the film reached 1 million ticket sales. And during the earnings call a few weeks later, Dolan said it had already surpassed 1.2 million with no end in sight.

"Pretty much everybody who's gone to Vegas over the years has seen O," Dolan said on the Sphere's earnings call. "I think 'The Wizard of Oz' can perform the same way.”

The company is preparing a new version of the spherical version of the 1939 film for its first anniversary next year. The next iteration could include more 4D moments beyond the “falling apples” effect. Dolan said a fun update to the show “might take you for a ride on a witch’s broom during the show.” 

The next film at the Sphere will be an original called “From the Edge” and is slated to debut late summer next year. The film will tell the stories of five athletes across extreme sports like skiing, free diviing, rock climbing, base jumping, and surfing. Audiences can expect to see footage shot in a variety of picturesque locations such as Dubai, Switzerland, Las Vegas, and Maui.

Taking Spheres Worldwide?

The popularity of "The Wizard of Oz" remake has already spawned a new soundtrack to give fans of the Las Vegas show a chance to enjoy the immersive musical experience at home. The original film score was fully rerecorded, adding a new a cappella version of “Somewhere Over the Rainbow.” 

(I wouldn't be surprised if more audio and video from Sphere Las Vegas shows became available in other formats, as an experiential memory for fans, and another revenue stream for Sphere Entertainment.)

The company plans to replicate the Sphere in small (3,000-seat), medium (6,000-seat), and original-size (18,000-seat) varieties around the world. The second Sphere is planned to open at an undisclosed location in Abu Dhabi, and representatives said more venue announcements are coming soon.

In addition to new Sphere-owned venues, the technology being developed could be leased or sold to others. Concert venues could offer better audio, while theaters could improve the moviegoing experience by incorporating Sphere Entertainment's innovations. 

Between the existing orbital venue, new Spheres in development, and its proprietary emergent technology, the company is building multiple revenue streams that could scale in profitability.

Back In Las Vegas, Artists Keep Adding Concerts

Call it genuine demand or smart marketing, performers keep adding shows to their Sphere residencies. Throughout this year, Kenny Chesney, the Backstreet Boys, and the Eagles all extended their 2025 shows into next year. More recently, No Doubt announced six shows at the Sphere and quickly added more dates to that list after so much positive reception.

While Dolan didn’t reveal any new headlining artists for next year, he said the company is always looking for options and there’s no shortage of rumors of who’s next. Could a Metallica show be in the works?