WASHINGTON (CNN) — Taylor Swift and Beyoncé collected significant concert income in 2023. This year, as Swift continues her Legacy Tour and Americans are expected to continue spending on live music, other pop stars such as Olivia Rodrigo and Bad Bunny will also take the stage. slower pace than last year.
In 2023, Americans splurged on concerts, major stadiums sold out, and hotel revenues increased. This was surprising given that inflation was rising and interest rates were at 20-year highs.
Despite evidence of a slight slowdown this year (according to Billboard, ticket sales for the annual Coachella Valley Music and Arts Festival are sluggish, with similar sales at other festivals attending) (Billboard reports that there is a slowdown in sales), but a sharp rebound is not likely to occur anytime soon. .
The latest economic forecasts estimate that the overall U.S. economy will remain strong through 2024, with Federal Reserve officials predicting the economy will continue to expand and the unemployment rate will remain low (though slightly rising). I predict that.
Economists say that as employers continue to create jobs and workers continue to receive decent wage increases, fans will have the disposable income they need to afford concert tickets. It is said that
There was also a long-term trend of people focusing their spending on experiences, especially after the COVID-19 pandemic confined fans to their homes for more than a year. Demand for concerts remains strong, and experts say musicians are taking advantage of it.
“As the job market and economy remain strong, consumers may and certainly will continue to spend on these tours,” Liz Anderson, content strategist at job site Upcast, said in a statement to CNN. “The demand is still there.” “And today's greatest artists are successful businessmen backed by large teams of advisors. They're not stupid. They look at the numbers and know when to take advantage of high demand. ”
Don't fans need to recover financially first?
Tickets for Taylor Swift and Beyoncé last year weren't cheap. That means, in addition to last year's touring acts like Bruce Springsteen and Coldplay, many fans could be shelling out big bucks to see one (or both) of these two artists in 2023. It means that it is highly sexual.
It stands to reason that these people should probably sit on the sidelines and save money or pay off their cards before going to another expensive concert. It goes without saying that inflation has continued to put pressure on people's budgets in recent years.
Beyoncé released her eighth studio album, Cowboy Carter, on March 29th, which features 27 songs rooted in country music. Unsurprisingly, the album's songs have already been hugely successful, breaking streaming records and ranking high on the Billboard Hot 100 chart.
Although the pop icon hasn't announced any tours to promote the album, some fans have already started speculating about X. I joked that I should actually wait until next year. Consumers have indeed become more price-sensitive in recent months, according to a Fed survey.
Swift released her 11th studio album, The Tortured Poets Department, on Friday, surpassing Beyoncé's streaming record in just a few hours and becoming Spotify's most streamed album in a single day in 2024. became. Swift's latest set of music was released as “''. This double album includes 15 additional tracks.
But the economy is still strong, and fans who didn't have the funds to attend Beyoncé's Renaissance Tour shows last year may now be able to snag tickets to see their favorite superstar live.
Consumer spending is supported by the job market, with U.S. consumers planning to stop spending on concerts unless it's absolutely necessary, such as because they've been laid off or their employers are putting the brakes on hiring. No, economists say. Neither has happened yet, and there is no recession in sight.
Experiential consumption spending
The United States is one of the richest countries in the world as measured by gross domestic product per capita, according to the International Monetary Fund's latest projections. It's a trend that's been building for decades, raising the country's standard of living and being the main reason Americans have enough income to spend on experiences in the first place.
“If you look at the last 60 years, rising wealth has helped the middle class to spend more of its disposable income on experiences,” said Pawan Joshi, senior vice president of product and strategy. he said. At business software company E2open.
“We intend to grow at a more moderate pace, but our resilience and desire to continue our activities has always made us more interested in participating in these events and entertaining ourselves. “It will help create more ways to do it,” he added. .
Experiential consumer spending is gaining momentum, even as Americans who may have given up on saving for a large down payment on a home are also gaining momentum as the government shuts down during the pandemic and the housing market remains underpriced. This may be the cause.
“The pandemic has caused a lasting change in the preferences of younger generations in particular. People used to make bucket lists of things they wanted to do in retirement, but now they're asking, 'Why should I wait until retirement? ''' said Janelle Johnson, partner and co-leader of PricewaterhouseCoopers' travel, transportation and hospitality practice. he previously told CNN.
