The upcoming US Tour of popstar Taylor Swift has thrown conventional economics to the wind. A limited supply of tickets, huge demands, price manipulation, and monopoly accusations are flying around. Yet, fans are willing to pay anything for tickets.
The 52 concerts tour ticket prices are reselling for as high as $40,000 or more. Last week’s official sales left millions without getting tickets, and they are ready to pay whatever just to secure a seat.
The Popstar’sPopstar’s fans, known as Swifties, are not the average American, and they represent the current mood where people are willing to splurge after missing entertainment and travel during a pandemic.
Most of the Gen Zs and Millennials are fans of Taylor Swift. They represent the turbocharged consumers who had high savings during the pandemic and have emerged after four years to see their superstar again in live performance.
According to Lisa Yang, an analyst at Goldman Sach Inc. and publisher of the “Music in Air “report for the Bank’s outlook on the global industry, concerts are affordable luxury during the recession.
The “Eras Tour” tickets are available in the secondary market and are not cheap. Ticketmaster suspended the official sales of the concert after selling 2.4 million tickets, and its website crashed after a massive traffic load of around 14 million people trying to secure seats.
Consumers such as Melisa Kearney, a University of Maryland economics Professor and mother of two 12- and 15-year-old Swifties, are looking to get tickets in the secondary market. Gustavo Coutinho, a Boston Consultant, saved $ 2000 in ten months to see live performances for the first time and paid $1500 to see two concerts.
The late economist. All Kruger explained economy from the music industry perspective with a new concept called “Rockonomics” in the early 2000s. He cited the example of Taylor Swift, who played with strategies that boosted concert sales, calling the Popstar an “economic genius.
Among other music artists, Bruce Springsteen has proved that fans are willing to pay for any post-Covid live mega events irrespective of recession.
Antitrust Allegations
Monopoly is another concept of Swift’s marketing strategy, with attorneys and politicians critical of Ticketmaster, a major player in live music performances. Live Nation Entertainment Inc., the parent company of Ticketmaster, faced an antitrust investigation last week by the Department of Justice. According to know sources, the probe was to see if the ticketing platform was abusing its monopoly and power.
According to Live Nation, Ticketmaster is a leader not because of its anti-competition policies but because of its platform quality. It apologized to the fans who could not get tickets that they worked on making the platform better in the future.
Supply Mastermind
Popstar is the mastermind behind the demand and supply of tickets. Swift has chosen high-capacity stadiums and added new concerts. There is a frenzy around her tours, but the question is whether fans can sustain the high-ticket costs or consumers continue to spend when job layoffs are increasing and interest rates are soaring. The answer will not be provided by “Swiftonomics,” but it is its microorganism that fans cannot shake off.
