Photo Credit: Gage Skidmore / CC by 4.0
The first year of the retooled ‘The Wizard of Oz’ at Sphere has helped the venue’s second-quarter revenue rise by 11% after adding more viewings.
Approaching the first anniversary of its Sphere-exclusive iteration, The Wizard of Oz could run for a decade at the Las Vegas venue, according to owner James Dolan. The film was retooled by a team from Google DeepMind alongside other tech, film, and live event specialists. It has grossed more than $400 million since its debut last August.
Speaking on the company’s second-quarter earnings call on Thursday, Dolan said the film will continue its success as additional Sphere locations open in the next several years. A full-sized venue in Abu Dhabi and a smaller-scale one near Washington, D.C., are projected to open within the next four years, with a number of other locations currently being evaluated.
“There’s always going to be an audience for that product,” Dolan said of the 1939 film. “That’s one of the reasons we picked it, because it’s so universally loved and it has tremendous legs.”
Second-quarter revenue rose 11% to $313.6 million as the Las Vegas venue added more viewings of Oz to meet demand. That said, the company recorded an overall $61.3 million operating loss, $11.1 million more than in the same quarter last year. This was largely attributed to a 30% increase in Sphere’s administrative and general expenses, which clocked in at $125.6 million during the quarter.
The venue itself, which generates revenue from Sphere Experience film showings, brand events, concert residencies, and sponsorship/suite licensing fees, generated revenue of $226.4 million. That number is up 29% year-over-year, mainly on revenue from The Wizard of Oz showings.
“We’re not shy of demand from artists to come play the Sphere, and we have some great artists coming up,” Dolan said. “But the whole business strategy behind the creation of Sphere is utilization of the venue, and that’s where we look at the growth to come.”
The company said 220 showings of the film in the second quarter exceeded the 215 showings of Postcard from Earth and V-U2: An Immersive Concert Film in last year’s second quarter. As a result, Sphere Experience revenue grew by $53.8 million year-over-year.
Sphere has plans for similar film-oriented experiences and is currently working on the production of The Rocky Horror Picture Show at Sphere, which is expected to open next year. The company is also planning to debut an extreme sports film, From the Edge, later this year.
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