國際時事跟讀 Ep.K648: Taylor Swift's Impact on the Economy: Exploring Swiftonomics
Taylor Swift, the 33-year-old American superstar, is not just dominating the music industry but also making shrewd business decisions that have a far-reaching impact on the U.S. economy. Affectionately dubbed "Swiftonomics" or "Taylornomics," Swift's prowess extends beyond her musical talents, as she leverages her influence to boost the economy and reshape labor compensation dynamics.
Swift's latest tour strategically targets the spending power of women who have seen increased wages post-COVID-19 and are eager to invest in experiences like live concerts. As the second-richest self-made woman in the U.S. music industry according to Forbes, Swift's global tour is set to include over 140 concerts across five continents throughout 2023 and 2024.
Alicia Modestino, an associate professor of public policy and economics at Northeastern University, highlights the significant impact of Swift's tour. With skyrocketing ticket prices, record-breaking attendance, and impressive revenues, Swift's tour is leaving an indelible mark on the music industry.
Each show of her Eras tour has grossed around $13 million, totaling more than $300 million after the initial 22 concerts. Swift's ability to evoke powerful emotions through her music, according to David Herlihy, a professor at Northeastern specializing in the music industry, justifies fans' willingness to pay premium prices for an unforgettable experience.
Beyond ticket sales, Swift's tour revenue is supplemented by sponsorships and merchandise sales. Devoted fans seek memorabilia to commemorate their Eras experience, further contributing to Swift's substantial earnings. However, Herlihy acknowledges that costs such as staging, crew compensation, and profit sharing with songwriters do impact Swift's overall earnings.
Swift's influence extends beyond personal profit, as her presence drives economic activity in cities hosting her concerts. Visitor spending on accommodations, dining, transportation, and various local businesses significantly bolsters the local economies. Notably, a single Swift performance in Colorado was projected to inject $140 million into the state's GDP, while her tour stimulated travel and tourism in regions across the nation.
In a surprising move, Swift distributed $55 million in bonuses to her Eras tour crew, showcasing her commitment to equitable compensation and fostering a positive work environment. This gesture aligns with broader trends of employers sharing profits with their workers, especially in a post-COVID era of increased profits and tighter labor markets.
As Swift's tour continues to captivate audiences globally, her strategic business decisions underscore her commitment to both artistic expression and economic impact. While her profound generosity sets a precedent, it remains to be seen if others in the entertainment industry will follow suit. Swift's unique ability to combine emotion and capitalism places her at the forefront of a new era of celebrity entrepreneurship, leaving an enduring mark on the economy and labor landscape.
Reference article: https://news.northeastern.edu/2023/08/11/taylor-swift-economy-impact/