The entertainment industry has always been a major influence on the U.S. and global economies. One of the biggest sporting events of the year, The Super Bowl, generates billions of dollars in economic activity. Super Bowl LVI, in 2022, generated $7.5 billion in economic impact for its host location, Minneapolis, MN. This includes $500 million in direct spending, $2.4 billion in indirect spending, and $1.1 billion in induced spending. It also created 10,000 temporary jobs in the city.
This year, three entertainment events have been major contributing factors to the global economy. Taylor Swift’s Eras Tour, Beyoncé’s Renaissance World Tour, and the Barbie movie have all made significant economic impacts by creating jobs, generating revenue, and boosting tourism.
Taylor Swift and Beyoncé to the Rescue
Taylor Swift and Beyoncé could both lay claim to being the most successful musician of this generation. Their tours have created thousands of jobs, both directly and indirectly. They have generated billions of dollars — $940 million for the Renaissance World Tour (Soon to be $1 billion) and the Eras tour has already surpassed $1 billion in revenue. This revenue comes from ticket sales, merchandise, and sponsorships.
The success of both tours is a prime example of Swift and Beyoncé’s influence and that includes the economic boost in tourism for the cities where these tours visit.
According to a study by the California Center for Jobs & the Economy, the Eras Tour generated an estimated $320 million increase in Los Angeles’s gross domestic product (GDP), the creation of 3,300 jobs, and $160 million earned in local revenue for the city.
The Renaissance World Tour is leaving a lasting impact on local economies in its wake:
- In the NYC, black owned beauty and spa business experienced a 5% increase in revenue.
- Women owned hotels and travel spots have seen a 44% bump in Chicago.
- LGBTQ+ owned retailers in Philadelphia saw sales increase by 194%.
While the Eras Tour is getting a majority of the publicity, when both tours end, it’s estimated that The Renaissance World Tour will total $2.1 billion in revenue compared to the $1.6 billion estimated for Swift’s Tour. All hail Queen Bey.
Okay Barbie, Let’s Go Party
Even though the 1997 Aqua hit “Barbie Girl” isn’t in the movie, that still doesn’t take away from the massive hit the Barbie movie has become. The movie has already grossed over $1 billion — $526 million domestic and $657 million international — in world-wide box office sales. Those companies receiving an immediate boost from the movie include:
- The movie exhibition industry (AMC Theaters, Cinemark, Regal Cinemas, etc.)
- Warner Brothers, studio behind the movie, although multiple strikes from SAG and WGA unions are no doubt stealing any thunder from Barbie’s success for the studio.
- Mattel, the maker of Barbie dolls, have benefited from an increase in Barbie doll sales.
- Shoemaker Birkenstock, who received recognition when the actress playing the title character, Margot Robbie, donned the sandals in one scene.
- Paint suppliers (Rosco, Sherwin-Williams, Benjamin Moore, etc.) are all seeing a run on the color pink.
The full impact of the Barbie movie’s influence cannot fully be measured for quite some time. The box office numbers, seen above, will continue to grow as will the creation of thousands of jobs, the millions of revenue dollars generated for retailers during the upcoming holiday season, not to mention the small bump in home media sales when the movie is made available to own.
As stated, the entertainment industry creates jobs, generates revenue, boosts tourism, and improves morale. While The World Renaissance and Eras Tours have created a positive impact, it wasn’t only Beyoncé and Taylor Swift who made it happen.
Those jobs created include crew members, dancers, singers, musicians, assistants, food vendors, etc. The Barbie movie success isn’t possible without writers, directors, film crews, producers, marketing firms, publicists and more. Those direct and indirect jobs created are also the reason why these two tours and a summer blockbuster movie are so successful.
Proving the entertainment industry is a powerful force for good throughout the global economy.