How Is Live Immersive Entertainment Expanding the Scope of Traditional Live Theater?

Following our LA IP/Entertainment Conference, Stefan Schick, co-chair of the firm’s Theater & Live Entertainment practice, continues the conversation, sharing his perspective on the growing momentum behind live immersive entertainment, where audiences can explore custom-built spaces and interact with performers, and how these shows and experiences are stretching the boundaries of traditional live stage shows. The conversation highlights what makes immersive entertainment so compelling, IP and licensing challenges, and how these trends are reshaping theater and live experiences.

Tell us about your practice and the types of theater & live entertainment matters you generally handle.

I advise clients on all aspects of creating, financing, producing and licensing live stage productions, including Broadway, West End, touring, regional and international productions. My work spans initial rights deals through opening night and beyond, representing producers, investors, writers and directors, as well as major film studios and other media companies adapting properties for the stage. I also handle complex IP issues (including stage rights in films, tv series, books, life stories and pre-existing music catalogues) and private securities offerings used to fund theatrical projects.

What defines “live immersive entertainment” today, and why is it resonating so strongly with audiences?

Live immersive entertainment often features elements of traditional theater, such as live actors, singers, dancers and some form of narrative, but with a unique twist, breaking the “fourth wall” between performers and audiences. Instead of sitting in a fixed seat facing a stage, audiences move through custom-built or designed spaces like repurposed hotels, warehouses or open-air environments. In some productions, guests can participate and influence the storyline live or explore different areas at their own choosing and pace, creating a personalized experience.

This format resonates because it satisfies the same human desire that traditional theater does, which is the need for shared, live experiences, while adding participatory elements. Audiences increasingly want to feel connected and part of the story, a trend reflected in gaming, virtual reality and other interactive content. Immersive entertainment taps into that appetite for engagement and exploration and a more active experience.

As immersive experiences grow more complex and collaborative, what new IP and licensing challenges are emerging for creators, producers and rights holders?

A few issues stand out:

Ownership of Creative Work

Unlike film or television, live stage productions traditionally aren’t “work for hire.” Authors, directors, choreographers and designers typically own their contributions, a custom that is deeply and historically rooted in the live stage industry. However, immersive productions don’t always follow these norms. Producers often seek to own creative elements outright, raising questions about whether immersive shows will adopt live stage conventions or evolve into something entirely different.

Integration of Other Media and Technology

Immersive shows frequently incorporate pre-recorded music and video content to a greater extent than traditional live stage shows, and are more conducive to AI-generated or other interactive media elements that respond to audiences in real time. The customized spaces typical of immersive shows may allow for more experimentation with novel technologies for generating content, such as drones.  This greater integration of media and technology introduces new licensing and IP considerations.

Underlying Property Rights

When an immersive show is based on an existing property, such as a film or TV series, rights holders must carefully define what rights are included in the license and whether other rights will be restricted in any way. For example, should granting rights for an immersive experience prevent the rights holder from authorizing a Broadway adaptation or an arena tour based on the same underlying property because those other types of shows will likely compete with the immersive show?  Or are those other types of shows different enough from an immersive show that they can co-exist?  These types of “holdback” considerations are becoming an important negotiation point.

Looking ahead, how do you see immersive entertainment shaping the broader entertainment industry?

Immersive entertainment is poised to influence other sectors of the entertainment industry. I anticipate we will see more cross-pollination with films, TV shows and video games adapted into immersive experiences, and vice versa. These productions also provide a testing ground for new technologies. The flexibility that customized immersive spaces provide will likely encourage experimentation and creativity in ways that traditional theater spaces cannot offer.

At Loeb, we are uniquely positioned to help clients navigate this evolving and exciting landscape. Our experience spans theater and other traditional entertainment, media, technology and real estate, allowing us to structure deals, address IP and space concerns and manage tech integrations all under one roof. As live immersive entertainment grows, we are committed to supporting our clients in bringing innovative, forward-thinking experiences to life.