Analysis
NAICS 711 is the 2022 subsector for performing arts, spectator sports, and related industries, part of 71 (Arts, Entertainment, and Recreation). Census lists 421 example activities under it in the official index.
Between 2018 and 2023 the number of establishments grew 21% and employment rose 3%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.
County Business Patterns counts 68,638 US establishments in this code in 2023, employing 542,145 people at an average annual payroll of $112,036 per employee (89th percentile of national industries). 83% of the establishments have fewer than five employees, which marks it as a small-business industry.
Across its national industries Census lists 421 index entries; typical ones are broadway theaters, ballet companies, bands and carnival traveling shows.
It splits into 5 more detailed codes. The largest by establishments is 7115 (Independent Artists, Writers, and Performers) with 38,677.
Its more detailed codes are 7111 Performing Arts Companies (10,511 establishments), 7112 Spectator Sports (5,147 establishments), 7113 Promoters of Performing Arts, Sports, and Similar Events (9,305 establishments), 7114 Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures (4,998 establishments) and 7115 Independent Artists, Writers, and Performers (38,677 establishments).
Official definition
Industries in the Performing Arts, Spectator Sports, and Related Industries subsector group establishments that produce or organize and promote live presentations involving the performances of actors and actresses, singers, dancers, musical groups and artists, athletes, and other entertainers, including independent (i.e., freelance) entertainers and the establishments that manage their careers. The classification recognizes four basic processes: (1) producing (i.e., presenting) events; (2) organizing, managing, and/or promoting events; (3) managing and representing entertainers; and (4) providing the artistic, creative, and technical skills necessary to the production of these live events. Also, this subsector contains four industries for performing arts companies. Each is defined on the basis of the particular skills of the entertainers involved in the presentations.
The industry structure for this subsector makes a clear distinction between performing arts companies and performing artists (i.e., independent or freelance). Although not unique to arts and entertainment, freelancing is a particularly important phenomenon in this Performing Arts, Spectator Sports, and Related Industries subsector. Distinguishing this activity from the production activity is a meaningful process differentiation. This approach, however, is difficult to implement in the case of musical groups (i.e., companies) and artists. These establishments tend to be more loosely organized and it can be difficult to distinguish companies from freelancers. For this reason, NAICS includes one industry that covers both musical groups and musical artists.
This subsector contains two industries for Industry Group 7113, Promoters of Performing Arts, Sports, and Similar Events, one for those that operate facilities and another for those that do not. This is because there are significant differences in cost structures between those promoters that manage and provide the staff to operate facilities and those that do not. In addition to promoters without facilities, other industries in this subsector include establishments that may operate without permanent facilities. These types of establishments include performing arts companies; musical groups and artists; spectator sports; and independent (i.e., freelance) artists, writers, and performers.
Excluded from this subsector are nightclubs. Some nightclubs promote live entertainment on a regular basis and it can be argued that they could be classified in Industry Group 7113, Promoters of Performing Arts, Sports, and Similar Events. However, since most of these establishments function as any other drinking place when they do not promote entertainment and because most of their revenue is derived from sale of food and beverages, they are classified in Subsector 722, Food Services and Drinking Places.
Source: US Census Bureau, NAICS 2022 Manual.
Index entries (421)
- Broadway theaters
- Ballet companies
- Bands
- Carnival traveling shows
- Baseball clubs, professional or semiprofessional
- Automobile racetracks
- Athletes, amateur, independent
- Air show managers with facilities
- Agricultural fair managers without facilities
- Agents, artists'
- Actors, independent