Ancillary Revenue
Income from live events beyond ticket sales, including merchandise, concessions, and VIP packages.
Definition
Ancillary revenue encompasses all live event income beyond ticket sales—merchandise, food and beverage, parking, VIP experiences, sponsorships, and other add-ons. These revenue streams can significantly impact event profitability and often involve split arrangements between artists, venues, and promoters.
Modern live entertainment has developed increasingly sophisticated ancillary offerings as competition for consumer spending intensifies.
Why It Matters
Ancillary revenue can transform marginally profitable events into financial successes. Understanding these streams helps entertainment professionals maximize opportunities and structure appropriate deals.
Artists increasingly focus on merchandise and VIP package revenue as touring economics evolve.
Examples in Practice
Concert merchandise can generate millions in revenue for major tours, with artists typically retaining 70-80% after venue cuts. VIP packages offering premium access command significant premiums over standard tickets.
Stadium and arena renovations increasingly focus on premium hospitality options that maximize per-patron ancillary spending.