Live concerts and events have made a trotting comeback after the global pandemic. Post-pandemic, pop icons like Taylor Swift and Beyonce are no longer just music or entertainment spectacles – they have become powerful economic engines generating billions of dollars and providing substantial boosts to local economies. In 2023, the reports from Cognitive Market Research, report that the global live music market sales revenue 2023 is 53.9 billion US Dollars. The music industry has undoubtedly expanded due to the growing popularity of live events. This connection between growing concert culture and economic impact plays a vital role in annual revenue as it can affect the GDP by direct or indirect spending in various sectors.
The spending and the investment vary depending on the scale and place of the event. A high-profile concert in a metropolitan area can significantly increase the revenue services of hospitality, transport, and food. This potentially helps the local businesses to flourish and employment for seasonal workers for the stipulated period is also made possible, lifting the economic constraint of them. This works in a way where the celebrities and locals – both are getting a profit out of it.
The experts also agree that the global economy is boosted in places, especially in places where Taylor Swift’s tour took place. When the tour stops in a city, the fans spend money on things such as tickets, hotels, food, shopping, and merchandise which boosts revenue. This spending gives a short-term economic boost to the cities, helping the businesses flourish and adding to the local revenue.
According to ReseachGate, the Eras tour is projected to generate around 5 billion dollars in consumer spending in the United States. In estimation, it is also given that every 100 dollars spent for the ticket is bound to generate another 300 dollars as revenue considering the other accommodation and shopping expenses. In Cincinnati, Ohio, two Eras Tour concerts reportedly brought $90 million in revenue to the region, with $7.9 million added hotel revenue from almost full hotel occupancy.
The growth doesn’t stop only in other foreign and western countries. India, as an emerging market in the concert economy, with hub cities such as Mumbai and Delhi increasingly hosting large-scale concerts fueled the revenue generated. While India’s concert industry is still in the developing phase compared to the Western Markets, India has shown an annual growth rate (Compound Annual Growth Rate (CAGR) 2024-2028) of 2.42%, resulting in a projected market volume of US$245.20m by 2028 according to Statista.
The recent increase in the concert culture helped in the positive increase in the economic status but at the same time, it also led to the problem of inflation. The prices of commodities and services shoot up in the area of concert which is beneficial only to the service provider or seller but acts as a drawback to the buyer or fans.
As the research continues to study the impact of concerts on GDP, the evidence suggests that the concert industry might be a stable contributor to economic growth in chosen circumstances. The forecast by PwC reports that the concert industry has shown resilient development and rebounded faster compared to the other entertainment sectors.
In the near future with expanding technological advancements such as Virtual Reality, Augmented Reality, and Mixed Reality and expanded global streaming capabilities, the economy is bound to rise even higher in comparison to the present. The expected annual growth suggests the potential revenue generation through concert culture which is a positive rise for the global economy.
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