CEO of Best Buy Attributes Sales Decline to Taylor Swift and 'Funflation' Impact
In a world struggling with rampant corporate greed and mounting student debt, It's Taylor Swift who owns the spotlight. At a time when people seem less interested in splurging on at-home tech gadgets, Best Buy's CEO Corie Barry pointed out the trend towards experiential spending, dubbing it "funflation."
During Fortune's Most Powerful Women summit last week, Barry stated, "Funflation, Taylor Swift... those experiences are really where people are willing to pay. Bigger ticket items in electronics are not right now where people are interested."
Much like the cultural phenomenon of Barbenheimer, where summer blockbusters reign supreme, Swift's The Eras Tour has become an experiential extravaganza that people are more than willing to shell out for. Cities hosting tour dates have seen a significant boost in tourism revenue, with Swift earning an estimated $2 billion in 2023, comparable to East Timor's GDP.
Taylor Swift: The Eras Tour opened last Friday, dethroning The Exorcist: Believer from the spooky Friday the 13th spot. The film took in a whopping $95 million in mere days, becoming the highest-opening concert film ever according to AMC Entertainment.
Swift's film's ticket price of $19.89 was a nod to her upcoming re-recorded album, but actual concert tickets proved even harder to snag. Ticketmaster experienced a chaotic crash during the tour's presale back in November, leaving many Swifties frustrated. However, the high prices didn't deter fans, with an average concertgoer potentially spending well over $1,000 on tickets, lodging, and transportation.
Across the industry, average ticket prices for live events have climbed 14% since 2019, reaching a total of $79.42, according to Pitchfork. This rate of increase outpaces the inflation rate for consumer goods.
In light of The Eras Tour's success, the live entertainment industry is being forced to reconsider its practices. The tour's demand exposed flaws in the dynamic pricing model, prompting calls for fairer systems and better artist compensation. Swift's influence also inspired artists to demand better royalty structures on streaming platforms and to redefine concert formats by revisiting different musical eras in one show.
While superstar openers like Phoebe Bridgers saw a lasting boost in popularity post-tour, the results for developing artists were mixed. Some, like Gracie Abrams, experienced steady growth, while others, like Owenn, saw a temporary surge followed by a steep decline. This illustrates the risk-reward balance of high-profile tours amid rising costs.
Consumers have prioritized the monocultural experience offered by the tour, validating the "funflation" trend. Social media dominance further reinforced the tour's status as a "must-see" event. The industry is now being pushed to innovate production quality and artistic scope, while addressing concerns about accessibility in an era of premium pricing. Overall, Swift's blend of nostalgia, spectacle, and economic clout has set a blueprint for future tours that merge artistry with macroeconomic impact.
- In light of the trend towards experiential spending referred to as "funflation," Best Buy's CEO Corie Barry noted that people are more willing to pay for experiences rather than at-home tech gadgets.
- Taylor Swift's The Eras Tour has become an experiential extravaganza, similar to the cultural phenomenon of Barbenheimer, where people are willing to spend significantly.
- Cities hosting tour dates of The Eras Tour have seen a notable boost in tourism revenue, with Swift earning an estimated $2 billion in 2023.
- Taylor Swift's film, The Eras Tour, opened last Friday, dethroning The Exorcist: Believer, and became the highest-opening concert film ever.
- Swift's film's ticket price was a nod to her upcoming re-recorded album, but actual concert tickets proved more difficult to obtain due to high demand.
- Across the industry, average ticket prices for live events have climbed 14% since 2019, reaching a total of $79.42, outpacing the inflation rate for consumer goods.
- The success of The Eras Tour has forced the live entertainment industry to reconsider its practices, prompting calls for fairer systems, better artist compensation, and innovation in production quality and artistic scope.
