Sphere Entertainment Co. (NYSE: SPHR)

Sphere Entertainment Co. is a leader in immersive experiences technology and media. The company operates the Sphere venue an advanced entertainment facility featuring a high resolution interior LED display immersive audio and 4D effects. It also owns MSG Networks which provides regional sports and entertainment programming through cable networks and a direct to consumer streaming service. Sphere Entertainment Co. seeks to create a global network of Sphere venues while strengthening its media presence in major markets.

Sphere Entertainment Co. generates revenue from ticket sales food and beverage hospitality suites sponsorship advertising and other venue related services at its Sphere location. The company also earns income from licensing its original immersive productions and from technology partnerships that support the Sphere platform. MSG Networks earns income from advertising sales subscriber fees distribution agreements and licensing of its sports and entertainment content. Additionally MSG Networks receives revenue from the sale of advertising avails on its digital platforms and from fees associated with its direct to consumer offering MSG+.

The company operates through the following segments.

• Sphere: operates the Sphere venue creates original immersive productions hosts concerts residencies and marquee events and provides technology and production services through Sphere Studios. The segment also develops new venue projects in collaboration with government and private partners and manages a growing library of proprietary content.

• MSG Networks: operates the regional sports networks MSG Network and MSG Sportsnet offers sports programming including exclusive local games of New York professional teams and provides a direct to consumer streaming service called MSG+. The segment also produces original sports betting shows and partners with other media companies to expand its streaming reach.

Sphere Entertainment Co. competes with other live entertainment venues and immersive experiences but differentiates itself through proprietary technology such as its 16,000 by 16,000 interior LED display immersive audio system and 4D effects. The company benefits from a strong portfolio of patents covering LED design audio delivery video capture and 4D technologies which protect its innovations. MSG Networks faces competition from national sports networks regional peers and streaming services yet maintains an advantage via long standing exclusive rights to broadcast games of the New York Knicks Rangers Islanders Devils and Sabres. Additionally MSG Networks leverages its decades of experience in sports production and its reputation for high quality programming to attract and retain viewers and advertisers.

Sphere Entertainment Co. serves event attendees concertgoers sports fans and visitors who purchase tickets hospitality suites and food and beverage at its Sphere venue. The company also works with advertisers and sponsors such as Delta Air Lines Google Lenovo Hewlett Packard Enterprise and various brands seeking exposure through the Exosphere exterior display. MSG Networks supplies programming to cable subscribers satellite viewers and direct to consumer subscribers of its MSG+ service. Its audience includes fans of the New York Knicks Rangers Islanders Devils Sabres as well as viewers of national sports events and sports betting content.