Over the past decade we have witnessed how big concerts of hip-hop musicians and other artists influenced not just the people but economies all together. However, nowadays this influence has spread to film industries too as we have witnessed with “Barbihimmer” debut. Let’s delve into how the new waves in the entertainment industry shapes our economies of today.
Entertainment industry in large encompasses many fields: film, television, music, gaming and more. Today, each of these branches of the industry make out over $20 billion separately in just a year. For instance, in less than a month, a single “Barbie” movie with Margot Robbie has made over one billion in revenue? USD, which has broken all the previous records in the history of the film industry. Such shocking numbers make us only wonder what the entertainment industry is about to bring out into our economy.
Relating it to our economy, it is believed that the entertainment industry, like any other, creates jobs, generates cash, and increases overall demand. But the industry’s influence within a single nation is never considered in more detail. It starts a cascade of economic activity, such as the demand for local labor, tourism, food, accommodation, and transportation services.
For instance, the recently emerging wave of K-pop, which was driven by BTS and Blackpink, significantly influenced South Korea’s economy. The export value of Kpop-related goods and services climbed from over $40 million in 2003 to over $5 billion in 2018, according to data from the Korea Creative Content Agency, reflecting an average yearly growth rate of 31.9%.
The contribution of Kpop and K-drama to South Korean GDP has also expanded dramatically throughout the years. According to a Hyundai Research Institute research, the Kpop industry contributed 1.7% of South Korea’s GDP in 2018, up from 0.3% in 2009. According to the analysis, the industry’s contribution to the country’s GDP might climb to 3% by 2020. Additionally, K-Pop stocks have increased by $5.4 billion in 2023 as a result of the industry’s high quarterly profitability and a rise in the popularity of pop culture worldwide.Along with the monetary advantages, more than 160,000 foreign students started learning Korean and enrolling to Korean universities. Overall, Kpop has developed into a sizable economic force with a profound effect on many facets of society and the country as a whole.
The entertainment industry’s rapid waves of economic activity sometimes induce unforeseen economic shocks. The impact of Beyoncé’s concert in Sweden serves as a prime example, where inflation unexpectedly surged to 9.7%, as reported by BBC News. The concert announcement triggered a wave of accommodation searches, sold-out tickets, and soaring resale market prices. Demand for tickets during the initial sales outstripped supply by almost 800%, showing a good example of the economic aftershocks caused by entertainment events.
In the United Kingdom, Beyoncé’s concert drew 60,000 attendees from diverse corners of the world, resulting in heightened demand for hotel rooms. The spectacle even displaced some homeless families from their temporary accommodations, underscoring the immense pull of entertainment on global migration patterns.
The enormous success of Taylor Swift’s “Eras” tour further emphasizes the effects of entertainment on the economy. Given that there has been significant spending at each location on the Eras Tour, the effect on L.A. is hardly unexpected. According to a report released in June by the online survey and research firm QuestionPro, the entire tour will have an approximate $5 billion economic impact. It claimed that the typical concert-goer spent more than $1,300 on expenses for tickets, merchandise, lunches, and other things.
Relatively recently, the release of the “Barbie” film not only benefited Mattel’s (MAT) stock price, but also had far-reaching effects on the economy as a whole. The movie’s success translated into soaring sales of toys, clothing, and merchandise adorned with the iconic Barbie design, amplifying its economic impact.
The entertainment industry has an impact that goes beyond first impressions and ignites a boom in economic activity. Far from causing negativity, this sector plays a pivotal role in supporting diverse economic sectors and acting as a safeguard against recession, buffering against short-term inflation spikes and housing market fluctuations. The relation between entertainment and economy is an intricate process that continues to reshape nations’ economic landscapes.