The virtual reality market is in transition

Virtual reality (VR) as a consumer product sits in an uncomfortable spotlight. Recent signals point to a cooling VR market, with delayed headset launches and a growing view of VR as a specialized segment, while industry momentum increasingly shifts toward AI, AR, and connected eyewear.

However, location-based entertainment VR (LBE VR) is quietly demonstrating resilience and acceleration. According to PICO, Asia recorded triple-digit growth in LBE VR in 2025, with tens of thousands of headsets deployed across more than a thousand venues. Free-roam gaming operators like Zero Latency and Sandbox VR continue to scale internationally, while experiential studios such as Excurio, Félix & Paul, and UNIVRSE show that long-form, non-gaming VR can attract millions of paid visitors.

The signal is mixed, but not contradictory, as VR adoption is fragmenting by context, usage, and value proposition. To better understand what still resonates, and with whom, Habo explored how entertainment consumers in the United States, France, and the United Kingdom engage with VR today, both at home and in an LBE context. For the purpose of the study, the European markets are presented together.

High consumer interest indicates growth potential for VR

For LBE VR, all-time penetration is moderate with just over a quarter of adults having tried it. Interest¹ in these types of experiences is significantly higher, reaching above 55% of the adult population. This gap suggests less a lack of desire than a conversion challenge: supply, accessibility, and clarity of value still limit participation.

Age plays a defining role. Adults 18 to 44 are the most engaged overall, both in terms of participation and interest, while those 45 to 54 show high levels of interest despite much lower penetration. They possibly represent an underdeveloped opportunity.

VR headset ownership rates are significant despite a higher commitment threshold. Among the adult population, they exceed 15% in the United States and remain lower yet still significant in Western Europe. Interest in future purchases significantly outpaces current ownership, especially among adults aged 18 to 44.

Ownership implies repeated use, suggesting that home VR, while more niche, can anchor deeper engagement.

VR is not broadly mainstream, but it is increasingly anchored among young adults and curious mid-life consumers. Strong interest in both LBE and home headsets suggests growth potential. Consumer motivations can provide key guidance for targeting and expansion.

VR resonates through immersion, social connection, and meaningful experiences

“I would be interested in participating in an immersive virtual reality experience because it allows me to fully immerse myself in another world, making the experience far more engaging and memorable than traditional media.”
“I’m interested in VR because it makes learning and exploring feel more real and exciting. It’s a fun way to experience new places or stories without leaving home.”
“It would be thrilling and otherworldly!”
“I think it allows me to dream and experience something that’s out of the ordinary in my life.”

Across markets, LBE VR succeeds when it feels special. Consumers consistently describe appeal through experiences that are new, immersive, interactive, and emotionally transporting. The language is less about technology and more about sensation: feeling like reality in a virtual environment, escaping to new and unique places, experiencing something different together. The social dimension appears repeatedly: VR as an activity to share with friends, children, or even grandchildren.

At home, VR usage varies by age and market.

— For 25 to 54, VR is primarily entertainment, dominated by gaming, with films and 360° video as secondary uses.

— Adults aged 18 to 24 treat VR as a broader experiential tool: social interaction in virtual spaces, escapism, skill development, wellness, and exploration all play a role. For this cohort, VR is not just play, it’s a parallel environment.

— Western Europeans tend to use VR more diversely than Americans, with higher engagement in health and wellness applications and virtual visits to cultural and tourist sites.

VR tends to resonate when it delivers emotional depth, social value, or meaningful escape.

Barriers stem from content, comfort, and accessibility perceptions

“Not seen anything that captures my attention or reflects my interests.“
“I am such a big fan of reality reality— I am not really interested in paying for virtual experiences.”
“I think it would be too far and expensive to find a place like that.“
“I’ve had a motion sickness experience before so now I’m turned off today the idea of the head sets entirely”

On the other end of the spectrum, many consumers still prioritize real-world, human experiences. VR is often perceived as isolating or as a substitute rather than a complement. Content perception is another friction point, as some describe VR as too childish, cartoonish, violent, or shallow. This signals less a rejection of VR itself than a mismatch between expected themes and personal interests.

Physical discomfort remains a persistent concern: motion sickness, eye strain, fatigue, and memories of early, underwhelming VR experiences shape expectations today. There are also some accessibility concerns: price expectations, urban concentration of venues, and the belief that VR “isn’t for my age.” These are not intrinsic limitations of the medium, but communication and design challenges that can be overcome.

Content will define what comes next

VR may not be on the verge of mass adoption, but it can grow and remain relevant among its foundational segments: committed gamers at home, families seeking shared outings, young adults exploring new forms of interaction, and a 45 to 54 audience waiting for the right proposition. LBE and home VR are not competitors; they reinforce each other. One thrives on the event and the collective moment, the other on frequency and personal immersion.

LBE VR, in particular, can learn from how 18 to 24 year olds use VR at home: for escapism, social presence, and identity exploration. Meanwhile, unmet interest among older adults points toward opportunities in narrative, cultural, and experiential content.

The common thread is that technology does not drive adoption, content does. For creators, the opportunity lies in designing experiences that speak directly to specific communities, emotions, and social contexts that already exist.

Habo will soon be releasing a second edition of this analysis, focused specifically on assessing the VR content value chain.

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The results in this article are based on a study among the general population in the United States, France, and the United Kingdom in 2025. For the purpose of the study, the European markets are presented together.

1 : Interest measures individuals who are somewhat interested or very interested

Shortly before the Milano Cortina 2026 Winter Olympic Games kicked off last weekend, International Olympic Committee President Kirsty Coventry signaled that the Games are set to undergo significant changes in the coming years.

This comes as the IOC continues its review of more than 450 medal events, part of a broader effort to keep the Olympics engaging for younger audiences.

With this in mind, Habo conducted a study in the United States to measure the level of interest and engagement in the 2026 Olympic Games.

The research found that the majority of adult Americans (77%) plan to watch the Winter Games, with interest levels similar to those for the Summer Games, driven more by the competition than the ceremonies (88% vs. 66%).

The study also revealed significant differences in viewership preferences and motivators across demographics, especially among age groups.

Younger Americans are less likely to follow the Olympic Winter Games than older generations, and are not as motivated by national pride.

Habo’s study found a significant generational difference in motivation and level of intent to follow the 2026 Winter Games; only 22% of young Americans indicated that they are very likely to watch, compared to an average of 45% among older age groups.

Although all age groups are motivated to watch the Winter Games to witness athletes compete at the highest level, Olympic traditions and ceremonies hold significantly less appeal for younger audiences. Instead, they are more compelled by the excitement, uniqueness, and scale of the Olympic Games.

National pride is also less of a motivator for younger audiences, who are more attracted to the Olympics as a stage for elite athletes and global competition. They resonate strongly with stories of athletes pushing physical and mental boundaries, especially in high-intensity or visually striking sports.

This is consistent with the sport preferences among younger Americans, who tend to favor action-oriented sports such as snowboarding, freestyle skiing, ski jumping, figure skating, and hockey.

Several winter sports generate the most interest among American viewers

Across all demographics, figure skating, ski jumping, speed skating, snowboarding, and hockey rank the highest in terms of intent to follow.

Women are significantly more attracted to figure skating and snowboarding, while men are more likely to follow ski jumping, speed skating and ice hockey, particularly noteworthy this year due to NHL player participation for the first time since 2014.

Especially as the IOC continues to evolve, several disciplines seek to take the opportunity to gain inclusion in upcoming Winter Games. Among them, the winter triathlon—which combines running, mountain biking, and cross-country skiing, all on snow—generates the most interest across all age groups and genders, followed by team alpine skiing.

Of the potential additions, bandy ranks lowest overall but draws particular interest among younger Americans (ages 18–34).

In order for the IOC to attract younger audiences and cultivate engagement in new generations, it should develop strategies around their key motivators. While adding appealing new disciplines to the program could contribute to this effort, strategy should also focus on optimizing the viewing experience of the competitions and the key moments beyond them.

Based on its expertise in the sport sector, Habo recommends incorporating the following considerations when developing strategies to more effectively engage younger audiences:

1. Integrate context around the sports themselves (statistics, history, etc.) to fuel viewer excitement during live competition content
2. Develop additional engaging shorter-form content and event highlights that appeal to younger audiences across platforms
3. Include the audience’s voice in the competition content through gamification or voting initiatives
4. Continue using innovative approaches and introducing unexpected elements into ceremony programs to impart the event’s cultural significance while engaging younger generations.

Habo recently released an article examining the potential of sports intellectual properties (IPs) in entertainment, using Formula 1 as a case study.

The study leveraged the Habo IP Index, a proprietary framework measuring the commercial value of brands for entertainment products and experiences, to assess the reach and monetization potential of top Formula 1 drivers and teams in two key markets: the United States and the United Kingdom. 

By comparing these markets, each at a different stage of Formula 1 maturity, the study identified the top-performing Formula 1 IPs by brand value:

Building on these findings, Habo now explores how Formula 1 resonates across different cultural contexts, and how sports brands can tailor market-specific strategies based on the sport’s maturity.

1. Differing sports landscapes and cultural histories of Formula 1

The first major difference between the U.K. and U.S. lies in the broader sports ecosystem and Formula 1’s historical presence.

Having originated and grown in Europe, Formula 1 is deeply embedded in U.K. sport culture, making it one of the sport’s most established markets with a broad, multigenerational fanbase. In fact, 42% of U.K. Formula 1 fans watch more than half of the races each season, demonstrating strong engagement.

In contrast, the United States presents a much more crowded sports market, dominated by well-established leagues such as the NFL, NBA, and MLB. Formula 1 has only recently gained traction here, thanks in part to the success of Netflix’s Drive to Survive and the addition of high-profile races in Miami and Las Vegas, a decade after the Austin Grand Prix’s establishment in 2012.

2. Varying levels of engagement

While the U.S. Formula 1 fanbase has grown significantly—reaching 69.2 million followers—most American viewers are primarily familiar with domestic races (Austin, Miami, and Las Vegas) and a few globally iconic events such as Monaco. Compared to the U.K., where the audience is more demographically diverse, U.S. Formula 1 viewers tend to skew younger and more male, primarily between 18 and 44 years old.

In contrast, Formula 1 fans in the U.K. exhibit a more sustained and deeply invested relationship with the sport. They are familiar with a broader range of international races, including Monaco, Monza, Jeddah and Austin, and are more likely to follow the sport consistently throughout the season. This highly engaged fanbase regularly consumes a variety of F1 content beyond the main races, including qualifying sessions, highlights, driver and team profiles, as well as pre- and post-race analysis.

3. Intangible pillars of the sport

Beyond history and market reach, the study highlights both shared and distinct drivers of fan passion in the U.K. and U.S.

In both markets, fans are drawn to core pillars of the sport: the thrill and adrenaline of high-speed racing, the skills of the drivers, the fierce competition and rivalries, the cutting-edge technology of the cars, and the strategic decisions of the teams. These shared brand pillars define Formula 1’s universal appeal.

However, how fans relate to these pillars varies.

Formula 1 in the U.K.: Rooted in tradition and heritage

In the U.K., Formula 1 is closely associated with tradition, legacy, and prestige. Fans often speak of growing up watching races with their families, rooting for historic teams, and the prestige surrounding classic circuits like Silverstone. The sport is perceived as elite, with fans forming lasting attachments not just to the competition itself, but also to specific teams and drivers.

— “I’m passionate about Formula 1 and have watched it since I was a little kid. I grew up watching Schumacher and Mika Häkkinen, and have been a huge fan of Lewis Hamilton since he started with McLaren in 2006/2007!”

— “I love it because I have loved cars and racing ever since I was a child, and I used to go to Silverstone with my dad. I was even taken around the track. It reminds me of my childhood and my dad, as he loved to watch the races.”

— “I have followed it ever since James Hunt and Niki Lauda. I love seeing the evolution of the sport, including safety, teams, drivers, circuits, and regulations. The rivalries between teams and drivers are riveting. I just love qualifying and the lights out!”

Formula 1 in the U.S.: Rooted in current performance and fan community 

While the core reasons fans love Formula 1 remain similar, U.S. fans tend to focus more on current race performances rather than tradition. The entertainment value and vibrant global fan community are more important draws for American audiences compared to the U.K.

— “It’s exciting to watch all the amazing cars racing and to see the celebrities there.“

— “I think racing is really cool, and I enjoyed the F1 Drive to Survive series, which is what got me into the sport.”

— “It is exciting and fast-paced. You don’t need to know much about it because it’s easy to follow.”

— “What I love most are the cars and the fans, and connecting with others who enjoy this sport as much as I do.”

The case of Formula 1 demonstrates strong success in both geographic expansion and product extension that goes beyond traditional and established revenue streams, from immersive experiences to the sport’s own streaming platform.

Understanding how Formula 1’s cultural resonance and fan engagement differ significantly between the U.S. and U.K. enables sports brands to tailor their products and strategies effectively—capitalizing on tradition and heritage in established markets like the U.K., while emphasizing entertainment and community in growing markets such as the U.S.

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This study was conducted by Habo through the application of its proprietary methodology – the Habo IP Index – in partnership with Dynata, a provider of high-quality panels on a global scale. This collaboration allowed us to combine our approaches and ensure the accuracy and reliability of our findings.

Orlando and Las Vegas are widely recognized as top U.S. destinations in the entertainment and tourism sectors.

In a recent article, Habo explored the impact of each city’s distinct entertainment offerings on tourism. The article highlights how international tourism in these destinations is driven by their entertainment offerings, with Las Vegas known for its strong gambling and nightlife scene, and Orlando for its extensive range of theme and attraction parks.  

Beyond these cities’ appeal to international visitors, both also rank among the most popular U.S. destinations among Americans.  

According to a recent study conducted by Habo among U.S. entertainment consumers¹, 33% intend to visit Las Vegas and 23% Orlando within the next two years. Although Orlando’s appeal appears to be lower, the annual number of American visitors to Orlando is nearly twice that of Las Vegas, largely due to the fact that many travel parties visit Orlando with children. 

Nevertheless, for both destinations the vast majority of visitors are domestic tourists, which underscores the importance of understanding the key dynamics regarding American visitors in order to effectively position offerings in these markets. This article examines three key domestic tourism trends and how they can be leveraged by entertainment providers in their marketing strategy. 

1. Beyond their entertainment offerings, proximity also plays a key role in the appeal of Orlando and Las Vegas for domestic tourists. 

Consistent with Habo’s findings from its previous study, entertainment attractions in Orlando and Las Vegas are the main driver of visits among domestic tourists, and have shaped the cities’ reputation and popularity.  

However, when choosing a U.S. travel destination, American tourists also consider proximity as an important factor. Consequently, Las Vegas tends to attract more visitors from the Western U.S. (59%), with California as the primary state of origin (36%), while Orlando draws more visitors from the Southern region, with most domestic tourists coming from Florida (41%), as well as Georgia, Texas, and other northeastern states like New York. 

For entertainment providers aiming to enter these markets, this presents a strategic opportunity to target audiences based on geographic location to optimize marketing efforts.

2. With Orlando and Las Vegas attracting distinct audiences, entertainment providers must ensure their offerings align with the preferences and behaviors of these destinations’ target segments. 

Similar to what is observed with international tourists, these destinations’ focus on entertainment also shapes the demographics of domestic visitors. For instance, Las Vegas’s positioning around gambling and nightlife influences the composition of its audience, primarily attracting men (57%). Visitors also tend to come either as couples (51%) or in groups of friends (34%). In contrast, Orlando appeals to a more diverse range of consumers, spanning a broader range of ages and group compositions, with a particular attraction for families, whether with children (38%) or other family members (35%). 

As the entertainment landscape has evolved to better serve these key audiences, Orlando has expanded its offerings to include mass audience attractions like zoos and aquariums, while Las Vegas has developed complementary offerings such as live performances and immersive experiences. 

With this in mind, entertainment providers should ensure a strong product-market fit with destinations’ positioning, offering experiences that attract key audiences to these cities in order to sustain long-term demand. 

3. Since both Orlando and Las Vegas are highly competitive entertainment markets, providers must engage with travelers early on in their customer journey. 

In addition to geographic and sociodemographic factors, effectively targeting key audiences also requires engaging at the right moment in the consumer’s decision-making process. Studies conducted by Habo reveal that domestic tourists often plan certain activities in advance when visiting entertainment-focused destinations like Orlando and Las Vegas. 

For instance, when planning their trip to Las Vegas, most U.S. travelers purchase tickets for at least some activities ahead of time. The majority of those who don’t at least identify a few experiences they want to participate in before their trip. This dynamic makes the search process key in their decision-making , and entertainment providers should position their experiences to ensure they are top-of-mind for visitors. 

This pattern also shows the importance of engaging with audiences early—before their trip even begins—to capture a share of their spending, with the best strategies and most sought-after sources for domestic tourists being search engine optimization, social media, tourism and destination websites, as well as user reviews. 

To succeed in major hubs like Orlando and Las Vegas, entertainment providers must understand their target audiences and the key dynamics that shape domestic tourists’ demand. While both markets offer significant opportunities, providers should tailor their strategic approach to visitors’ preferences and behaviors. 

Key strategies for navigating entertainment-driven markets like Orlando and Las Vegas: 

1. Tailor the targeting strategy based on audiences’ geographic location and sociodemographic characteristics. 
2. Ensure strong product-market fit with both the target audience and the destination positioning.
3. Strategically position the experience early in visitors’ search and decision-making process for activities at the destination. 

¹ According to Habo’s methodology, entertainment consumers are adults aged 18 and over who participated in at least one paid out-of-home entertainment activity in the past year.

Intellectual properties (IPs) are widely used in the entertainment industry to broaden audiences and deepen fan engagement, and sports IPs are no exception. Increasingly, sports IPs are being leveraged beyond live events to create new experiences that connect with existing fans and attract new ones across the globe.

To enrich the at-home fan experience, many sports IPs have expanded across multiple platforms—from acclaimed Netflix docuseries like Formula 1: Drive to Survive (2019) and Full Swing (2023), to blockbuster video game franchises such as NBA 2K and EA Sports NHL, and loyalty-driven fan platforms like the FC Barça app.

We’re also seeing significant growth in out-of-home entertainment, as sports IPs explore new mediums to reach untapped audiences.

Take Formula 1: once primarily a European sport, it has become a global phenomenon, connecting millions of fans through its races. Yet, based on Habo’s recent study, nearly 90% of F1 audiences in the U.S. and U.K. have never experienced a live race—most engage through TV or streaming. Reaching these audiences through other mediums presents a major opportunity.

Measuring the Potential of a Sports IP Across Entertainment Mediums

Although major sports IPs benefit from highly engaged fanbases, expanding into new entertainment formats does not guarantee success.

To assess the strength and potential of an IP across different mediums, Habo developed the Habo IP Index—a framework designed to measure the commercial value of existing brands and guide their optimization, diversification, and global expansion. The model evaluates three core dimensions:

1. The IP’s overall health and performance indicators
2. The depth of connection and intangible value from the fans’ perspective
3. The IP’s potential for monetization and expansion across products and experiences

Habo IP Index: The Case of F1

As a case study, Habo conducted research with 3,000 adults across two key markets with differing levels of F1 maturity: the United States and the United Kingdom. The study tested 13 IPs, including the Formula 1 brand, the top four teams from the 2024 season, and their current drivers.

In light of the recent release of the F1 movie and the touring Formula 1 Exhibition, the findings offer valuable insight into how the brand can continue to grow its global reach and unlock new monetization opportunities.

Understanding F1’s Cultural Relevance in the U.K. and U.S.

To begin with, the U.S. and U.K. have distinctly different sports landscapes. In the U.K., Formula 1 is one of the most-followed sports—supported by decades of cultural relevance, local teams and drivers, and a deeply rooted fanbase. In contrast, the U.S. sports culture is more diverse, though largely dominated by domestic leagues such as the NFL, NBA, and MLB. The two markets also differ in how sports are consumed. In the U.S., sports are often intertwined with broader entertainment experiences—reflecting the country’s wider entertainment-driven consumption habits.

Despite these differences, the study highlights the strength of the F1 brand in both markets. Awareness is remarkably high—98% among the U.K. adult population and 88% in the U.S.—and the sport benefits from a strong reputation and increasingly engaged fans.

However, the cultural relevance and fans’ emotional connection to the sport and its IPs vary. In the U.K., F1 enjoys deep-rooted cultural significance, with fans forming lasting emotional bonds with specific teams and drivers. In contrast, while F1’s popularity is growing in the U.S., Americans are generally less familiar with individual drivers and teams—reflecting the sport’s more recent rise in visibility.

Leading Formula 1 IPs by Brand Value

While awareness is a promising indicator of commercial potential, the ability to extend an IP across different mediums also depends on the depth of fans’ attachment and their propensity to pay for various products and experiences based on that IP.

Based on the Habo IP Index, the study reveals the leading Formula 1 IPs by brand value:

The F1 universe demonstrates strong opportunities for monetization across different products and experiences—generating particular interest in merchandising, video games, theme parks, and immersive experiences.

However, the ranking highlights key differences between the two markets.

In the U.K., the top-performing F1 IPs reflect its mature ecosystem—with three teams and several well-established drivers ranking at the top. In the U.S., a newer F1 market, top IPs are more diverse and more closely aligned with the current on-track performance of the sport.

What’s next?

To ensure the success of any sports IP-based experience, producers, creators, and IP owners must focus on IPs that are not only culturally relevant but also leverage their core pillars—why fans love them.

This study offers valuable insights into key market differences and the potential of sports-based experiences. Over the next few weeks, Habo will reveal key insights on how to successfully leverage these findings to unlock growth and engagement across diverse markets.

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This study was conducted by Habo through the application of its proprietary methodology – the Habo IP Index – in partnership with Dynata, a provider of high-quality panels on a global scale. This collaboration allowed us to combine our approaches and ensure the accuracy and reliability of our findings.

Understanding one’s audience now goes beyond general data analysis or intuition. In the entertainment, sports, tourism, and experiential sectors—where expectations and behaviors are highly diverse—a structured understanding of audience dynamics is a powerful tool. It enables the design of relevant offers, guides marketing communications based on motivators and perceived intangible value, and ensures efficient allocation of marketing investments toward the right channels.

In this context, two complementary approaches deserve to be distinguished: segmentation and personas. While they rely on similar foundations, their role, purpose, and place in the strategic process differ.

What sets them apart—and when should each be used?

Segmenting to structure the analysis

Segmentation involves grouping individuals who share common sociodemographic profiles and analyzing their purchasing behavior, preferences, and other shared characteristics. This helps structure market understanding, assess potential, identify priority segments, and guide development decisions.

Used early in the process, segmentation provides a robust analytical framework to build product development strategies and targeted marketing campaigns in terms of both messaging and channel selection.

A segmentation exercise can be carried out by analyzing existing buyer data and conducting a quantitative study to explore the profiles and behaviors of interested individuals. A qualitative study, conducted subsequently, can help refine segmentation and add greater nuance to how behaviors and consideration of the offer are understood.

Building personas to refine activation

The persona development approach complements segmentation. It offers a more nuanced view by creating clear portraits of current and target buyers. This process integrates specific characteristics, behaviors, motivations, barriers, and expectations. It is particularly valuable when it comes to personalizing marketing messages, designing tailored experiences for participants, or diversifying complementary offers.

To be scientifically validated, personas should be based on behavioral quantitative research and further enriched through qualitative methods to achieve greater depth and accuracy.

Case study: Understanding Broadway audiences

In a study conducted by Habo, over 1,000 U.S. musical theater consumer participants were surveyed to analyze their profiles and behaviors. The persona analysis was built from data including sociodemographic profiles, attendance habits, and preferences.

Based on this detailed analysis, six personas were confirmed—including The Cultural Adventurers and The Broadway Traditionalists. These profiles include additional qualitative dimensions, such as motivations, preferences, and decision-making drivers, providing a more human and actionable view of the audience. They help translate data into concrete guidance for marketing, programming, or product development teams.

Orlando and Las Vegas are recognized as major hubs in the tourism and entertainment sectors. Both cities attract millions of visitors annually and are among the top U.S. destinations contributing significantly to the national GDP from tourism, solidifying their positions as leading travel hotspots.

Given their strong appeal to tourists visiting the U.S., many producers target these markets to commercialize their experiences. However, the heavy dependence on tourism introduces complexities, requiring strategic approaches to ensure the sustained success of these offerings.

While some major experiences have achieved remarkable success in both markets, there are key dynamics to consider before entering either market in order to mitigate risks.

1. Compared to other markets, the influx of tourists in Orlando and Las Vegas is significantly driven by entertainment offerings, creating a key opportunity for producers to position themselves in visitors’ minds early in their journey.

Habo’s global experience confirms that the appeal of Orlando and Las Vegas is heavily driven by their entertainment offerings, compared to other tourist destinations.

For instance, while tourists visiting European countries often seek cultural immersion — exploring food, traditions, and history — the demand in Orlando and Las Vegas is overwhelmingly centered on entertainment. Habo’s studies of international tourists planning trips to these cities consistently highlight entertainment as the primary motivator for their visit.

Given the importance of entertainment in both destinations’ appeal, many tourists book their accommodations and trips around the key activities they plan to attend, often booking experiences before their visit.

For producers targeting these markets, this presents a strategic opportunity to engage with travelers early —before the trip even begins—to secure a share of their spending.

2. Orlando and Las Vegas attract distinct segments of tourists, making it essential for producers to ensure a product-market fit with the audiences of both destinations.

This focus on entertainment in both destinations also shapes the demographics of their visitors. For instance, Orlando’s extensive collection of 22 theme and attraction parks makes the destination highly appealing to families and young parents. In contrast, Las Vegas’s emphasis on gambling and nightlife, with 67 casinos, significantly influences the composition of its visitors, primarily attracting couples and groups of friends.

Not only do these offerings continue to grow in both markets, but the entertainment landscape is also evolving to better serve these key audiences. In addition to theme and amusement parks, Orlando has developed a strong family-oriented offering, with attractions such as zoos and aquariums. Similarly, complementary experiences like live performances are expanding in Las Vegas to cater to its evolving audience.

Both cities therefore offer distinct yet highly focused opportunities for producers interested in these markets. With this in mind, producers must first ensure a product-market fit with the target audiences attracted by each destination to sustain long-term demand.

Geographic Distribution of the Offerings in each Market

3. The high concentration of entertainment offerings in Orlando and Las Vegas creates highly competitive environments, yet producers in both markets face distinct challenges.

In Las Vegas, entertainment is concentrated within a compact 4.4-mile radius, creating a saturated market with numerous offerings and advertising stimuli. This concentration makes it difficult for new entrants to capture visitors’ attention.

In contrast, Orlando’s offerings are more spread out, covering a 15.4-mile radius. While visitors are distributed across a larger area, strategic geographic positioning becomes a key factor for producers to stand out.

To succeed in major hubs like Orlando and Las Vegas, producers must understand the complex dynamics that shape entertainment offerings and consumer demand. While both markets present vast opportunities, producers must adopt a strategic approach tailored to visitor behaviors and market trends to succeed.

The financial importance of live games

Live game attendance remains a crucial aspect of professional sports revenue, particularly in North America. Ticket sales, premium seating, concessions, and in-stadium sponsorships account for a significant share of team revenues. In major North American leagues, game-day revenues contribute between 25% and 40% of total revenues for the NFL, MLB and NBA, reaching close to 60% in the NHL and MLS. This share reaches only 15% to 18% in Europe’s top football (soccer) leagues, where broadcasting and sponsorship play a larger role. This reliance on live events makes understanding and enhancing the fan experience a key priority for teams and leagues.

North America: an entertainment-driven experience

North American fans expect a game-day interactive and immersive experience that extends beyond the game itself. Clubs and venue operators have adapted by offering entertainment-driven engagement and using most available moments to capture attention and spending. Premium hospitality, interactive fan zones, and sponsored activities during play stoppage all contribute to generating additional revenues. Teams also leverage extensive fan data to personalize interactions, build stronger relationships with their audience and drive long-term loyalty. Fans expect a balance between game-focused traditions and innovative entertainment elements that make each event feel unique.

Europe: a match-centric culture

In contrast, European sports culture is deeply rooted in the tradition of focusing on the match itself. While some teams experiment with expanded experiences, most European fans prioritize the action on the field, with less emphasis on pre- or post-game activities and less play stoppages to be used to capture their attention. Unlike in North America, where fans often arrive early and stay late, European stadiums are primarily event-driven spaces, and monetization strategies rely less on ancillary revenues from the live experience. However, major international events and major clubs with expensive new stadiums are beginning to introduce elements of enhanced engagement to meet evolving expectations and improve revenue generation.

The Middle East: a market in transformation

The Middle East represents an emerging and rapidly evolving landscape for live sports. While local fans have historically followed international clubs more than domestic teams, a strong push is underway to build a homegrown sports culture. Large-scale investments in infrastructure and entertainment-driven experiences signal a move toward a model inspired by North America, but with adaptations that reflect local preferences. A key challenge remains shifting local habits, as fans are not yet accustomed to arriving early or staying post-event, but strategies are being developed to change this behavior and create a more integrated sports experience.

The growing demand for personalization and connection

This is a general overview, and many specific cultural differences by sport and by market exist, particularly between regions of Europe. Despite these variations, one common trend is the increasing demand for a more personalized and meaningful connection between fans and their teams. Younger generations in particular engage with sports differently, valuing digital interaction, social experiences, and community-driven engagement.

The strategic value of understanding fan engagement

The success of live sports depends on a deep understanding of fan expectations and behaviors. A one-size-fits-all approach does not work, as cultural nuances, economic factors, and historical traditions all play a role in shaping how fans experience live events. By understanding and adapting to fan expectations, leagues and franchises can strengthen their brand, increase revenues, and sustain long-term growth in an ever-changing sports landscape by adopting the optimal product and marketing strategies.

When it comes to entertainment, two cities in the United States stand out unmistakably: New York and Los Angeles. These urban giants, with respective populations of nearly 20 million for New York and 13 million for Los Angeles, embody the cultural and economic vitality of the country. While both are major players in the industry, they offer distinct entertainment consumption dynamics that are essential to understand for a successful market entry.

A look at their unique characteristics and populations

New York, the cultural heartbeat of the United States, is one of the largest and most dynamic markets in the country. The city stands out for its unmatched variety of entertainment offerings, ranging from the Broadway theater scene to world-renowned museums and major sporting events. Los Angeles, on the other hand, is positioned as the world capital of cinema, with its iconic film studios and a deeply rooted film industry that plays a key role in the local economy. The city also boasts a diverse entertainment landscape, including theme parks, museums, live performances, coastal recreation activities, and zoological and botanical parks.

These distinct features contribute significantly to the attractiveness of both cities, making them top tourist destinations: New York welcomes between 30 and 35 million visitors annually, while Los Angeles receives between 25 and 30 million.

Although these tourist flows are promising for a new entertainment concept, successfully entering these markets requires a deep understanding of local consumer behavior. Local audiences will be the first drivers of success for a new offering, allowing it to later expand its reach to domestic and international tourists.

In terms of sociodemographic profiles, both cities exhibit a similar age distribution among their populations. However, several distinctive elements set them apart and are worth noting:

What are the differences in entertainment consumption?

Both cities are home to a vast audience of entertainment consumers:

However, these consumers have distinct entertainment consumption habits depending on the type of offering:

Entertainment activity penetration rate by market

The key differences between the two markets can be seen in the consumption of:

Theme parks and amusement parks

Entertainment consumption in this segment is significantly stronger in Los Angeles compared to New York. The city is home to nearly 15 iconic theme parks, such as Disneyland Resort in Anaheim, Universal Studios Hollywood, and Six Flags Magic Mountain, which attract millions of visitors annually. In contrast, while New York has a few large parks, such as Six Flags Great Adventure in Jackson, Coney Island, and Nickelodeon Universe Theme Park, its market is less diverse (5 to 10 parks).

Festivals

Entertainment consumers in New York have a much higher appetite for festivals than those in Los Angeles. The city is teeming with festivals of all kinds—music, dance, film, art, photography, theater, and more—throughout the year, catering to a wide variety of audiences. Some of the most prestigious include the Tribeca Film Festival and Governors Ball. However, what truly sets New York apart is its multitude of street fairs and local parades, which add to the city’s vibrancy and reflect its diverse ethnic communities. While Los Angeles also hosts major festivals, such as Coachella, it has a lower density of smaller-scale events.

Museums and exhibitions

Whether science centers, historical museums, or art museums, exhibitions, and galleries, New York dominates in terms of museum attendance. The city boasts an impressive concentration of approximately 500 museums, including some of the world’s most prestigious institutions, such as the Metropolitan Museum of Art (5.4 million visits/year), the Museum of Modern Art (2.8 million visits/year), the Solomon R. Guggenheim Museum (861k visits/year), and the Whitney Museum (768k visits/year). Conversely, while Los Angeles has a noteworthy offering of over 200 museums, it does not match the density or global reputation of New York’s cultural institutions.

How to successfully establish a presence in these two markets?

Effectively launching a new entertainment concept in New York or Los Angeles requires a thorough understanding of the local landscape. A successful strategy must consider not only market differences but also the profiles and entertainment consumption habits of local audiences. These factors can significantly influence how a given concept is received and consumed.

In this context, testing a concept at a local scale before a full rollout is an optimal strategy. This approach helps validate audience engagement and identify specific expectations regarding the concept itself (e.g., theme, duration, level of interaction, storytelling style), visit logistics (location, pricing, group composition, timing, seasonality), and the most effective promotional tactics (channels, key messages). These insights are crucial for fine-tuning the strategy based on local market motivations, maximizing the chances of success.

Two additional elements are essential for a successful market entry:

Analyzing local competition

New York and Los Angeles are highly competitive markets. Securing a foothold amid the abundance of existing entertainment options is a significant challenge, and some concepts fail right from launch. In this context, an in-depth competitive analysis is essential. It should consider multiple factors, such as the positioning of existing offerings (concept, location, marketing, distribution), and help understand their key success factors. This analysis enables the development of a strategy tailored to the local environment, leveraging the differentiating aspects of a new concept compared to what consumers already have access to.

Choosing a strategic location

The choice of location is a critical determinant of an experience’s success. In cities as vast as these, factors such as transportation accessibility, population density, local demographics, commercial rental costs, and the concentration of competing entertainment offerings vary significantly by neighborhood. All these elements must be carefully considered to ensure commercial success. Notably, in a sprawling and traffic-heavy city like Los Angeles, travel times play a crucial role in audience decision-making. In New York, the most vibrant and accessible neighborhoods are likely to be the most effective for attracting a broad audience.