![Pinterest](https://pinterest.com/pin/create/button/?url=https://beijingtimes.com/culture/musicandtheater/2023/06/28/live-music-ticket-prices-surge-fueling-beyflation-concerns/&media=https://beijingtimes.com/wp-content/uploads/2023/06/730f820f-8bf0-468c-81ef-f2cb96b5eddd.jpg&description=The cost of concert tickets, especially for renowned artists like Taylor Swift, Beyoncé, and Bruce Springsteen, has skyrocketed in recent years, leading economists to raise concerns about "Beyflation" and its impact on inflation figures. This article explores the surging ticket prices, the demand-supply dynamics, and the potential implications for the entertainment industry.){kind=link}
In an era where the price of goods is fluctuating, there is one industry that stands out for its soaring costs: live music. Concert tickets for some of the world’s biggest music acts, including Taylor Swift and Bruce Springsteen, have reached exorbitant prices, catching the attention of economists and fueling concerns about a phenomenon dubbed “Beyflation” or “Swiftflation.”
Fans are now willingly splurging on tickets, fully aware that they will witness extraordinary performances by their favorite artists, some of whom have not toured for years. “People are willing to splurge because they know they will get quality content, plus who knows when or if she’ll do another tour after this one,” explains London-based Beyoncé fan Mario Ihieme.
The United Kingdom, in particular, has witnessed a surge in recreation and culture prices, with a staggering 6.8% increase in the year leading up to May 2023. This is the highest recorded growth in three decades, with live music events’ admission fees playing a significant role. However, calculating the precise impact on inflation becomes challenging due to the subjective quality of music artists and the constantly changing lineup of performers each month.
A quick look at ticket-purchasing platforms highlights the sticker shock that fans are facing. On reseller Stubhub, the cheapest seat for a Taylor Swift show in Seattle in July is priced at $1,200, while tickets for an August Mexico City show cost $500 each.
Joel Barrios, a Beyoncé fan from Los Angeles, recounts his extensive efforts to secure tickets. “I had to get nine phone numbers for three different accounts on Ticketmaster under three different credit cards,” he shares. Barrios spent approximately $7,000 on three U.S. shows for himself and friends, and an additional $6,650 for several shows in Europe.
Although some fans claim to have had an easier time, with ticket purchases going smoothly through presale links, the significant increase in ticket prices remains undeniable. Carolina Candelas, who bought Beyoncé tickets in Barcelona, paid 92 euros ($101) each and found the process relatively effortless. However, with live music accounting for only a fraction of overall entertainment costs and consumer spending primarily focused on essentials such as housing and food, skeptics question whether concert prices can truly impact inflation figures.
Andy Gensler, executive editor of Pollstar, a global concert industry publication, dismisses the notion that Beyoncé’s shows would significantly affect inflation as “ridiculous.” While ticket prices have indeed increased, mid-year figures have not shown a notable rise since May 2022 when U.S. inflation stood at 8.6%.
However, the demand for live music continues to outstrip the supply, leading to soaring prices on the secondary market. TD Cowen’s vice president of equity research, Stephen Glagola, reports an average increase of 75% to 100% above face value for tickets sold on secondary platforms.
Although the U.S. Labor Department does not specifically measure inflation for concert prices, the inflation rate for live performing admission events currently exceeds the headline inflation rate by 2.6 percentage points. This gap has widened throughout the year as overall inflation figures have decreased.
This trend is not exclusive to the United Kingdom or the United States. Across Asia, music enthusiasts are flocking to see marquee names like Bruno Mars, Coldplay, and the Backstreet Boys. Concerts have become a catalyst for travel, with fans like Fairuz Zahari from Malaysia visiting multiple countries for the sole purpose of attending concerts.
In India, fans are willing to pay a premium for high-quality entertainment, resulting in healthy growth in ticket prices. Owen Roncon, chief of business for Live Entertainment at BookMyShow, cites the Backstreet Boys’ DNA World Tour in India, where the average ticket price ranged from 7,000 to 8,000 rupees ($85-$98).
Despite the steep costs and challenges of securing tickets, a recent survey by U.S. event management company Eventbrite reveals that 80% of consumers are eager to attend events as much or more this year. Live Nation Entertainment’s CEO, Michael Rapino, confirms this trend, reporting a 41% increase in ticket sales and double-digit price growth in the first quarter.
For music lovers like Beth Cook from Leeds, attending live events is worth the expense. She explains, “When the pandemic was in full swing, I think everyone was in a really low mood, and we missed out on events like this, where people all come together. Now I think with things up and running, the people who can afford to are saving up to come to things like this because they are amazing.”
As ticket prices continue to rise and concert demand remains high, the long-term implications of “Beyflation” on the entertainment industry and inflationary measures are yet to be fully understood.
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