In the wake of the COVID-19 pandemic, a new consumer trend is taking the U.S. by storm. Recent times in the US have seen consumers opening their wallets a lot more for entertainment and live experiences driven by Taylor Swift and Beyonce concerts and the “Barbenheimer” movie craze.
Termed as 'Funflation', a phenomenon in which people spend more on live entertainment due to pent-up demand and increased savings. According to a Bank of America report, this recent boom in entertainment and experiential spending may not be a fleeting phenomenon, but a lasting trend in the US.
Source:- https://www.digitalmusicnews.com/2023/10/17/what-the-heck-is-funflation/
The Driving Forces:
Powerhouse artists like Taylor Swift and Beyoncé are pivotal contributors. Bloomberg's recent analysis estimated that these megastars could amplify the U.S. GDP by a staggering $5.4 billion through their concert tours alone.
The report suggests that the boom to the economy provided by these big scale artists may continue beyond the immediate few months. It proposes that this could be a new trend in itself.
Taylor Swift's 'Eras Tour': A Blueprint of Success
Taylor Swift is one of the artists who is capitalizing on the funflation effect with her Eras Tour
Swift's Eras Tour, celebrating her 17-year career, promises to be a record-breaker, with projections pointing towards a $2.2 billion gross from North American ticket sales.
But its economic impact extends beyond these numbers. A study from QuestionPro anticipates a total economic boost of around $5 billion. This includes not just ticket sales but also related expenditures such as travel, apparel, and food. Every Eras concert is estimated to pump approximately $36 million into the local economy and support 300 jobs.
The cultural ripple effects are equally impressive. Cities have rolled out the red carpet for Swift, bestowing upon her whimsical honours: from renaming Minneapolis to "Swiftie-apolis" to offering her the title of honorary mayor in Santa Clara, California. Globally, leaders from Budapest to Canada are extending invites, hoping to lure her mega-tour to their locales.
This Swift-inspired frenzy has also led to unexpected local economic phenomena, like the booming demand for beaded "friendship bracelets", leading to bead shortages in some areas.
Source:- https://toistudent.timesofindia.indiatimes.com/news/top-news/trend-what-is-funflation-raging-in-the-us/82274.html
Beyoncé's 'Renaissance Tour': A Masterclass in Economic Impact
Parallel to Swift's success, Beyoncé's Renaissance Tour is another exemplar of 'Funflation'. Cities hosting Beyoncé have witnessed significant economic upticks, from hotel bookings to beauty salon appointments. For instance, during her Philadelphia performance week, searches for hotels shot up by 21% and restaurants by 30%.
Fashion has been an unexpected beneficiary. Fans are keenly translating Beyoncé's style into their own wardrobes. This has led to surges in searches for nail technicians (193% increase in Philadelphia) and hair stylists, among others.
A Wider Impact on the Entertainment Sector
These artists are not just revitalizing live performances; they're also invigorating other entertainment sectors. Swift's tour, for instance, has led to an 80% surge in Spotify streams of her discography. This resurgence in interest extends to other artists, as Swift's fans explore new music through her collaborations and recommended playlists.
The era of "Funflation" might be in its nascent stage, but its impact is undeniably transformative. With the entertainment sector evolving at an unprecedented pace, this trend not only forecasts economic prosperity but also signals a rejuvenated cultural zeitgeist.
Article by- Jiya Goyal
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