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š Musical Theatre Roll Up & Vertical Integration
Story of ATG Entertainment, a global theatre platform backed by Providence Equity
Roll-Up Playbook: Theatres
I recently attended a Broadway musical with a cousin visiting from out of town. The show was fantastic and surprisingly packed for a Wednesday afternoon. It got me wonderingā¦
State of Play
In January 2025, ATG Entertainment (āATGā)āa global theatre platform backed by Providence Equityāannounced its acquisition of SOM Produce, a Spanish theatre operator and producer with 5 venues in Madrid.
Madrid ranks as the third-largest theatre market, behind Broadway (New York) and the West End (London). This deal continues ATGās M&A-fueled expansion, growing its portfolio from 40 venues in 2013 (when Providence acquired it) to 73 venues today.
How ATG Makes Money
Before diving into ATGās investment thesis, hereās a breakdown of its three vertically integrated business lines:
šļø 1. Theatre Venues (ATG Venues)
ATG generates revenue from its venues through:
Venue rental fees ā Typically a weekly flat fee + a percentage of box office revenue
Concessions ā Food, beverages (especially alcohol)
Merchandise ā Show-related memorabilia like clothing, posters, and souvenirs
Advertising ā Brand sponsorships and local business promotions
Memberships ā Subscriptions offering perks like free drinks and discounted tickets
Some theaters outsource concessions and merchandise to third-party operators, effectively acting as landlords collecting rent and fees.
š„ 2. Musical Production (ATG & Sonia Friedman Productions)
For its in-house productions, ATG earns revenue from:
Ticket sales ā The primary revenue driver
Licensing ā Granting performance rights to other venues or formats
Albums & streaming ā Royalties from show music, primarily on streaming platforms
šļø 3. Ticket Sales (ATGtickets.com, Groupline, LOVEtheatre)
ATGās ticketing business monetizes through:
Ticketing fees ā Service and processing fees charged to consumers
Advertising ā Digital ads on ticketing websites and apps
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