interviewing “Martha DeBeer in W”, Valeria Moi, IMCO (Mexico Competitiveness Institute) General Manager TW: @valeriamoy // IG: @valeriamoymx // Podcast on @asícomosuenamx: Peras y Manzanas
How does music affect the global economy?
● Concerts and live entertainment events have a significant economic impact because a large amount of revenue is used to maintain day-to-day operations, such as marketing costs, legal services, and professional services.
● In the United States alone, the industry’s total national economic impact is $132.6 billion, including nearly $9.3 billion in federal tax revenue and $8.3 billion in state and local tax revenue, in addition to supporting a total of 913,000 jobs, Related labor income was approximately $42.2 billion in 2019.
● According to Pollstar statistics, the global concert and other live event industry lost more than US$30 billion due to the epidemic in 2020, including a box office loss of US$9.7 billion.
● According to Statista statistics, after the epidemic is over, total global online ticket sales revenue is expected to reach US$33.8 billion in 2023. This is effectively equivalent to Paraguay’s 2022 gross domestic product (GDP).
● Live entertainment ticket prices are currently rising 2.6 percentage points higher than overall US inflation.
● According to Hosteltur, music tourism contributes $3.3 billion to the UK. Expenditure of tourists attending celebrity concerts in the UK will result in:
– 1.535 billion euros for tickets, transportation and accommodation.
– €1.08 billion related to the supply chain from which it arises.
– 710 euros is the average cost for foreign tourists.
– London attracts 28% of the UK’s music tourists; 1.8 million people visit the capital.
How do celebrities drive the economy?
beyoncé
● According to the BBC, the singer started a world tour in Sweden in May, which led to increased demand in hotels and restaurants, thus affecting the country’s economy, with the inflation rate reaching 9.7%. This event is known as “Beyond Inflation.”
● In Stockholm, Beyoncé performed in front of 46,000 people over two nights, attracting thousands of fans from around the world, especially from the United States, as ticket prices rose as the dollar strengthened sharply against the Swedish krona. A “bargain”.
● The average ticket price in the United States is between $300 and $700. According to Ticketmaster, the VIP package is priced at $3,500.
● The Renaissance World Tour is the highest-grossing tour by a female artist to date, with revenue of $461.2 million, according to Touring Data.
● Expected to raise more than $2 billion by October 2023, according to Forbes.
● According to Yelp, during the week of July 6-12, Philadelphia saw a 21% increase in hotel and travel searches, a 10% increase in shopping, a 30% increase in restaurant visits, and a 9% increase in spa and other beauty services % (Beyoncé’s Philadelphia tour date is July 12), compared to last year.
● Throughout the tour, searches for nail specialists increased due to Beyonce’s tour: 193% in Philadelphia and 178% in New York, while searches for stylists increased by 71% in Philadelphia and 61% in New York.
Taylor Swift
●It is expected that “Journey of the Times” will add US$5 billion to the global economy. This number exceeds the GDP size of 35 countries, which is why today in North America we talk about “Swiftconomics”.
● According to Billboard, Taylor’s 52 U.S. dates totaled approximately $590 million, with an average ticket price of $215.
● Through the world tour, Swift’s box office revenue is expected to exceed the record line of 1 billion US dollars.
● Top ticket prices in the United States are typically 20% to 30% higher than in other parts of the world, making the United States a more profitable market than Europe or Asia. The average ticket price is $455.78.
● Each concert-attending Taylor Swift fan has spent an average of $1,300 or up to MXN 80,000 so far in 2023, not just on concert tickets but also on hotels, flights, clothing and accessories, food, alcohol , drinks, gasoline, parking, etc.
● After Swift performed in Denver, the Common Sense Institute estimated that the concert would add approximately $140 million to Colorado’s GDP due to an influx of 75,000 fans and more than $100 million in direct consumer spending.
In Mexico:
● The Mexico City Chamber of Commerce, Services and Tourism (Canaco) estimates that the American singer’s speech will have an economic impact equivalent to 1,123,760,855 pesos, mainly due to the cost of tickets, services and accommodation, and purchased goods. Food and Beverage Business and Sales.
● In Mexico City, hotels near the concert venue reported a 60% increase in occupancy during the tour, and total accommodation and services revenue increased by more than MXN 5.5 million to MXN 8 million.
Messi
● According to Forbes, the cost of living in Fort Lauderdale increased by 30% after Messi arrived in Florida.
● According to Fox Business, hotel inventory in Fort Lauderdale (where Messi’s home is located) has grown 290% over the past five years, and occupancy rates for all hotels in the city reached 86% in the first quarter, exceeding The national average is 23 percentage points higher.
● With Messi’s arrival, the stadium has been expanded by 2,000 seats and even the “Brightline” trains connecting Miami and Fort Lauderdale (home of DRV PNK Stadium) have increased the number of trains on nearby schedules, according to Forbes Go compete.
● According to TyC Sports, when Messi signed for Inter Miami, thousands of fans signed up for Apple TV because it was the only way to watch the game. According to reports, 110,000 new users subscribed to MLS Pass on the day Messi debuted. A few days later, another 65,000 people joined in for the second game.
● The best month before launch was March with 124,000 users and June (the month before launch) with 38,000 users. As of July, when it officially launched, it had 288,000 new subscribers in the United States alone. This number is converted to a total of 1 million 164 thousand 705.
● According to Despegar.com. Messi sparks Miami-Fort Lauderdale accommodation search. Prices range from US$1,460 to US$1,800 per person, including airfare and three-star hotel accommodation.
LeBron James
● Los Angeles has seen a huge economic impact since LeBron James and the Los Angeles Lakers agreed to join forces for the next four years on July 2, 2018.
● The club’s economics increased jersey sales by 600%, making the Lakers one of the most televised teams in the United States. Twenty minutes after he signed, the price of a ticket to watch the game at Staples Center increased by about 1,150 euros on the StubHub website.
● LeBron signed a four-season contract for $135 million in 2018. In 2022, he agreed to a two-year contract extension for $97.1 million.
● Annual revenue is US$44.47 million.
● According to a study by Harvard University, due to the arrival of the NBA star, the California town created nearly 3,000 jobs, increased tax revenue by more than 25 million euros, and the city’s economic impact during this period reached 3.5 One hundred million U.S. dollars. time.
● This is not the first time that the “LeBron Effect” has affected cities. When he signed with the Miami Heat in 2010 and the Cleveland Cavaliers in 2014, cities in Florida and Ohio saw how a player’s influence could propel them forward.
● Within a 1.6 kilometer radius around American Airlines Arena (Miami) and Quicken Loans Arena (Cleveland), 23.5% of jobs were created while LeBron was on the court, while restaurants and food stores grew by 12.8% and 13.7%, respectively. respectively.
● In 2009, there were 190 food stores in Cleveland, but after LeBron joined the Miami Heat in 2010, the number dropped to 180.
● This incident also happened in Miami, but the exact opposite of Ohio City. The number of restaurants around the Heat’s home court increased from 160 in 2010 to 175 in 2012 to 250 in 2014.
Cristiano Ronaldo
● According to “Forbes” magazine, Cristiano’s net worth is 160 million euros.
● According to MonEsport, the player signed a contract with Al Nassr Club for at least three years, with a total profit of 600 million euros in the next three seasons.
● Coca-Cola’s stock price plummeted, causing losses of more than 3.5 billion euros after Cristiano withdrew two bottles of soft drinks and asked for water at a press conference.
● According to “Sports Illustrated”, when Manchester United officially signed the player, the club’s stock price immediately rose by 7.44%.
● In 2020, he received US$50 million in endorsements from Nike, Clear Shampoo, Herbalife and other companies.
● Al Nassr Club boosts tourism in Saudi Arabia by 2000% with signing of Cristiano Ronaldo.
● Ronaldo’s jersey when he was at Juventus was sold out within 24 hours, with sales exceeding 60 million euros.