James L. Dolan oversees a family empire that includes Madison Square Garden, Radio City Music Hall, the Knicks, and the Rangers. Dolan draws controversy in New York over his management of the city’s beloved sports franchises and clashes with fans and politicians. He uses facial recognition to ban lawyers suing him and fans with “Sell the Team” signs. Dolan came up with the idea for the Sphere after considering how to best use over $1 billion available to his companies. He wanted to reinvent live entertainment by owning both the venue and content. The Sphere will generate revenue through ticket sales, advertising, and creating its own productions.
Dolan sees it as a way to improve the economics of the venue business by controlling all aspects. Construction on the Sphere began in 2018 with an initial budget of $1.2 billion. Costs swelled to over $2 billion during the pandemic, but Dolan remained committed to completion. He fired top executives earlier this year and took over management to get it completed, albeit late and over budget. The Sphere is seen as a major addition for Las Vegas and a signature project for Dolan.
The Sphere is a $2.3 billion high-tech arena in Las Vegas that has over 700,000 square feet of LED screens wrapping the exterior and interior to create an immersive experience. It uses sound, vibration, and smells to fully transport audiences. The outside of the Sphere features a 5,296-panel spherical LED display screen that wraps around the entire structure. This makes it one of the largest LED spheres in the world. Inside is a state-of-the-art theater with the world’s largest high resolution LED screen. The whole configuration was designed and implemented by SACO who designed the LED panels used on the outside as well.
The rock band U2 opened the Sphere with a residency that is now being extended, but it comes at great cost, upwards of $20 million, depending on who you ask. There’s also interest from the MMA in staging fights there. It has gained a lot of attention, and it certainly seems to have the wow factor, no matter how you look at it. So, what does that mean for the display market?
Well, imitation is the sincerest form of flattery so, if the Sphere is successful, and we still have to wait and see how things turn out in the long run, we can expect similar venues to pop everywhere. After all, Dolan wanted to change entertainment venues for good, and provide a new experience that was unmatched. He is also in the process of building one in London, as well. That bodes well for companies like SACO but also competitors like LG, Samsung and Daktronics.
But, the move towards ever larger displays at entertainment and sporting venues isn’t confined to Dolan’s vision. When billionaire Los Angeles Rams owner Stan Kroenke was building the team’s SoFi Stadium in Inglewood, California, at a cost of $5.2 billion, he wanted SACO put an LEDs on the roof to create an overhead video experience, and Samsung provided all-LED digital signage for scoreboards and interior signage. The roof of SoFI stadium may not be 4K but that’s just bragging rights when you should really consider the impact on the consumer. And if consumers are wowed by the Sphere or SoFi Stadium’s roof, it really doesn’t matter about the specs. It’s all about the spectacle.
There are several key points to note here, especially for purists. Firstly, these displays are not directly comparable to LCD or OLED panels. They are more likely LED lights or, to use a trendier term, architectural LED displays. Their performance largely hinges on the software that manages the hardware controllers, allowing them to mimic the appearance of continuous display panels linked together. While these setups might cost millions, using traditional display panels would inflate the price to tens or even hundreds of millions, with a supply chain that might struggle to meet market demand.
But, digital signage products do bleed into traditional panel markets, and digital signage and LED lighting meld into each other:
- LED Technology: At the heart of both applications is the LED itself.
- Modularity: Both large LED lighting installations and digital signage displays are often modular. This means they’re made up of individual LED panels or tiles that can be combined to create larger displays.
- Brightness and Visibility: Given the public nature of large displays, both applications prioritize high brightness and visibility. Whether illuminating a large space or showcasing content on a billboard, it’s crucial that the display is visible from a distance and in various lighting conditions.
- Control Systems: Both LED lighting systems and digital signage require sophisticated control systems. These systems can determine the color and intensity of lighting displays, or manage the content and scheduling for digital signage.
- Versatility in Design: Both LED lighting and digital signage benefit from the versatility of LED technology, allowing for creative designs. Curved screens, 3D displays, or interactive installations can be achieved using the same foundational LED components.
It’s somewhat myopic to perceive these massive installations at sports stadiums merely as advanced LED lighting systems. This evolution taps into the allure of spectacle. Not every venue will necessitate surrounding arenas in video displays. However, when scaled down, smaller venues in retail, hospitality, and corporate sectors might be drawn to recreating similar atmospheres. Currently, such applications may appear specialized and financially inaccessible for many. Yet, if the Sphere demonstrates that a multi-billion-dollar venture into this technology yields significant returns, then it could be justifiable for a wide range of applications.
The convergence of digital signage and LED lighting, especially at the application stage, paves the way for broader usage. Las Vegas, once synonymous with flashy luxury amidst gambling’s seedy backdrop, has now morphed into an entertainment hub, with gambling as just one of many attractions. The city’s transformation offers a glimpse into how its brand of entertainment glamour could be replicated elsewhere. Many casinos globally now rival Las Vegas, and many venues can copy the Sphere. While New Yorkers may not hold James Dolan in the highest regard, and he might remain under-appreciated, his foresight could potentially revolutionize parts of the display industry. The Sphere, and the vision driving it, might catalyze a plethora of new business opportunities previously unimagined because people will be willing to push the envelope and invest in new display configurations. In search of spectacle, and the money that flows from it, there’s an awful lot of entertainment venues that need to be upgraded. I think it is inevitable.
