Nick Majeskie
Mr. Reuter
Economics--A3
May 23rd, 2016
Keep the Music Going
Summerfest is an annual music festival held at Henry Maier Festival Park along the lakefront in Milwaukee, Wisconsin. The festival last 11 days, and made up of 11 stages with multiple artists coming every year to perform. Summerfest attracts between 800,000 and 1,000,000 people each year, promoting itself as "The World's Largest Music Festival", a title certified by the Guinness World Records since 1999. Music lovers across the nation come and watch all types of artists and musicians perform.
Even though Summerfest is operated by a non-profit organization that hires the production staff to operate both the venue and main Summerfest event, which features local and nationally known music talent from a variety of music genres; Summerfest generates 187 million dollars for the city of Milwaukee and 226 million dollars for the state of Wisconsin of revenue. This has a positive impact on the state of Wisconsin because it creates jobs and causes money circulation, which benefits consumers and Wisconsin’s economy. This is a key component to keep Wisconsin’s economy strong and healthy. However, music is not the main reason why Summerfest generates so much profit, the main profit contributions came from food, beverages, rides, and sponsorships. 
Even though most of the revenue isn’t generated from ticket sales alone, the reason people go to Summerfest is for the music. So it is important that the people who run Summerfest create a lineup that would appeal to the masses.
Even though most of the revenue isn’t generated from ticket sales alone, the reason people go to Summerfest is for the music. So it is important that the people who run Summerfest create a lineup that would appeal to the masses.
This year’s lineup consists of a wide variety of singers, such as Luke Bryan, Selena Gomez, and Pitbull. Hopefully, Summerfest will live up to its standards from the past and have a successful year. It is important for Wisconsin to have an event that generates so much money for its economy, so let’s keep the music playing.
Works Cited
"Summerfest." Wikipedia. Wikimedia Foundation, n.d. Web. 24 May 2016.
"2016 Lineup | Summerfest, The World's Largest Music Festival."Summerfest. Summerfest, n.d. Web. 24 May 2016.
"Who's Playing at Summerfest 2016?" WISN. Summerfest, 12 Oct. 2015. Web. 24 May 2016.
Do you believe in the next couple years the demand for summerfest will go down because the younger and younger crowd that is attending? Which will change the money circulation? I think that it will really depend on how much older people want to deal with the younger crowd attending. I also don't realize how much a profit they really make off of the consumers with overly priced food and drinks. You can't bring a water bottle in which means a hot day you get thirsty you have to pay for a $4 water.
ReplyDeleteI find it interesting that the tickets sales don't end up giving the most profit to Summerfest as a total. In return the rides and other such attractions brings in the most amount of profits at 28 percent according to the post. Going to Summerfest has always been a good time for me and I know it's the same for many others as well. That being said I don't think it'll be a problem to keep the music going because of all the popular musicians and artists that play on the stages at Summerfest. I did not realize that as much as 18 percent according to the post, profits come from sponsorship.
ReplyDeleteSummerfest is one of the biggest things my friends talk about. It really does generate a lot of money. Which is a good thing. Our economy can use all the money it can get. Since we are in so much debt the US can use all the money it can make. I never really think about Summerfest being such a big deal. I personally never went to Summerfest because of all the people that drink and act out irrationally and do some crazy things, but I know it is a great place to go for music and for a good time. Maybe I'll think about going this year because the line up seems pretty good this year. I never really though that Summerfest was a non-profit organization. That definitely surprised me because it is so big I thought it would make double what it really does make. It's crazy to think about Wisconsin having something in the Guinness World Records. Overall it was a great topic and your information surprised me.
ReplyDeleteI was surprised to see, on your graph, that rides generate so much revenue because I didn't know their were rides there. Maybe if they would market that more to the public, their revenues would increase even more. Also, I am interested to see whether they are able to match or surpass last year's total revenue, now that the price of tickets are increasing. I feel as though Summerfest is relatively elastic to consumers because, no matter what the ticket price is, people always seem to want to go. It will be interesting comparing this year and last year's revenues because that will prove whether or not the assumption proposed above is correct.
ReplyDeleteI was surprised to see that rides was the biggest share of profit because there really aren't any rides. I would think that most of the revenue would come from food and drink. The success of Summerfest is obvious because it supports the state and brings tourists from other states. As long as the musical acts in the fest are in high demand, there will be a consistent amount of people each day. Also, the seasonal employment supports the state because the unemployment rate will, at least, temporarily decline. I would be interested to see how the revenue from Summerfest compares with other music festivals in the country because there are multiple locations that would allow for a better tourists destination than Milwaukee. If other festivals got similar acts, our Summerfest may lose profit to the competition.
ReplyDeleteSummerfest is the biggest music festival in the world. Its filled with the best artists in one place all performing for any and all guests. Tickets are easy to obtain as most concerts have no limit for attendance. It is one of the biggest revenue movers the city of milwaukee will ever see, and is a giant part of the wisconsin summer economy.
ReplyDeleteI was very surprise when I saw the graph when I go to summer vest I rarely go in rides, I just try the cool food. Its also cool to see hum much money summerfest makes every year. What makes this even cooler is that soon it will be mostly young people going to these concerts and teens are not the best with money so I can see summerfest profits spike soon.
ReplyDeleteIt did not surprise me at how much money the rides at Summerfest generate because of the cost to ride them. I have looked at the general cost to go on the ferris wheel in years past and it's about $5 which I think is very over priced. It also does not surprise me at the amount of revenue they earn from this music festival and I think they will be able to go way beyond that at this years events.
ReplyDeleteThis awesome music festival is the largest in the world, which means it brings in a huge amount of revenue. After reviewing your essay and analyzing your pie chart, it came to by suprise that rides were the number one for revenue because I only saw a few rides at summerfest last year. It is not very surpising that the second largest money maker is beverages, because they often charge huge prices like, $8 for a water or even $10 for a soda. Realizing that it creates $187 million for the city and $226 million for the state is crazy to think about because it only happens once a year for a few weeks. Overall this was a very interesting topic and I like how you used economics vocbulary to enhance your paper.
ReplyDeleteThis is a very interesting piece, I never knew that Summerfest was able to make this much money being a non-profit organization. However, the popularity that it has among a wide variety of age demographics around the states could lead to such big margins. I amazes me how such big names as Pitbull will come to Milwaukee to preform when most big names only travel to big cities like Chicago. Summerfest is truly a good place marker on the map for Milwaukee and Wisconsin in general.
ReplyDeleteI thought it’s interesting that Summerfest is run by a non-profit organization. I would’ve thought that the group in charge of running the grounds would like a large profit for themselves. I also found it interesting that rides contribute the most to the revenue generated by Summerfest. I would’ve thought that food or drinks would’ve beaten that category. It’s interesting, also, to see that the booths and raffle categories do not generate more of a profit. IT would also be interesting to know how many people it actually takes to staff the Summerfest grounds for those 11 days. They must be paid a lot if they are only working for such a short time. The effort of setting up and working there for less than two weeks must also circulate money through many local businesses. All in all, Summerfest profit sources are pretty interesting to look at.
ReplyDelete- Martin Mueller
It is really awesome how much revenue is made from Summerfest each year and the amount of positive things it does for our community. I wonder what exact projects the money is used on in Milwaukee and Wisconsin. I found it very interesting that on the chart it stated that rides made up 28% of revenue. I found this interesting because I didn’t even know there were many rides other than the Ferris wheel. I definitely thought food and beverage would be a higher revenue than the rides.
ReplyDeleteI myself contributed to Summerfest last year and know for a fact that the high pricing on food and items is true. Just some fried eggplant cost me $11, and buying a light up rave style mask put me out another $25. The experience I had makes me want to return and I'm sure that's why all those thousands of other people want to come back as well. People save up all year to attend all 11 days sometimes which certainly gives the festival a good chunk of change.
ReplyDeleteI always love going to Summerfest, even though I do NOT like large crowds like that. I always have fun and make more awesome memories and experiences. It's always so cool to see performers come out and give us shows. I actually saw my favorite band there last year. It's pretty obvious to see that Summerfest makes a lot of money. With the tickets and employees and renting out spaces for performances--it's no wonder it's popular. It's also super cool that the tickets are generally cheap--which is a smart move for the festival since so many people come.
ReplyDeleteSummerfest is a significant economic event for Milwaukee and the state. The festival brings in large amounts of money to the state every year and while the stats you included in your article are interesting, it would've been better had they been compared to the stats of other, similar music festivals. One thing it would've been interesting to see addressed is whether or not the restricted environment of Summerfest allows the monopolistic competition firms to make long term profits and produce at MC= ATC.
ReplyDeleteOverall, nice job with your blog post. I knew that Summerfest created revenue, but I did not know how much. The large amount of revenue that the fest creates was surprising to me, but on further thought it’s not really that surprising at all. The world’s largest music festival no doubt creates that much revenue for the city and state. It would have been interesting if you would have discussed what that revenue is utilized for in the city. Overall you were adept at utilizing economics terminology, which accentuated your post. I thought that your post was well written, and I cannot wait for the fest to begin!
ReplyDeleteIf you live in Wisconsin, you look forward to Summerfest all year. Your post made it clear that the profit earned through the festivities greatly influence the state of Wisconsin and the city of Milwaukee financially. The festival also builds a sense of community and gives a positive name to our city. It would have been interesting to hear more about the impact on smaller businesses that partake in Summerfest. I work for Saz's catering and know that they generate a lot of summer revenue from their stands at Summerfest. These businesses also hire more people during the summer to work the festival stands, causing a seasonal decrease in unemployment.
ReplyDeleteIt is amazing the amount of money that is brought in at Summerfest. It seems like there is always a diverse lineup, so it appeals to all different age groups. Also, the variety of food is a great way to satisfy everyone's needs. I would be curious to see how much the artists that perform are paid? I am sure hotels are booked months in advance for out of town visitors.
ReplyDeleteI think one way that Summerfest appeals to the masses is by offering a wide variety of musicians for both the younger and older generations. The more Summerfest can increase their age range, the more profit they will obtain from this large festival. In addition, the older crowds and family-based crowds seem to come in during the times of the day versus at night where things can get a little crazy. With this widely attended event, it only makes sense for the food prices to be increasing since the consumer demand is also increasing. All of this, like you said, is awesome for Wisconsin’s economy.
ReplyDeleteWow! Very cool piece! I absolutely love Summerfest! It's so much fun! And recognizing that it also brings money into our city, makes me love it that much more. There's so many jobs created from Summerfest like working the food vending places. For example like Saz's their little area of restaurant is directly in front of a stage. So not only do you make money and cook delicious food, you can also enjoy great live music. This is the most excited i've been for the lineup, I can't wait to go and enjoy great music with my friends and also support the community by putting my money towards it.
ReplyDeleteSummerfest is very popular among all age groups, not only do very young kids attend, but some fairly old adults. I cannot see Summerfest going out of style for a long time. It’s important people continue to go because of how much much it makes. Everything at summerfest is expensive, the parking, bus services, admission, food, and other vendors. I was unaware that it was a nonprofit because I always feel like I am spending way too much there for it to be nonprofit. Summerfest also interests a wide range of music, from country to EDM, Summerfest will continue to grow in size, and increase revenue.
ReplyDeleteSummerfest is a very positive festival for the state, however it is predicted that the attendance rates are going to decrease with in the next couple of years due to the teenage crowd, that is begging to attend the popular festival. I have also heard speculation that many normal goers are decided to skip the festival due to the increased amount of country stars that are performing this year. Although right now and in the past summerfest has become a great addition to the summer months, the future for the festival may not be as great.
ReplyDeleteI would have never thought that rides create so much of the revenue out of everything offered at summerfest, and with the price of paid shows, I definitely would have pictured more income from music alone. Food and drink being the majority makes sense with so many streets lined with vendors. An interesting statistic would have been a comparison of how much vendors pay to sell every day vs how much they make every day on average.
ReplyDeleteI was surprised that the largest revenue generator for Summerfest is rides. I would have guessed it to be food/beverages or even the tickets themselves. Regardless, Summerfest does generate a lot of revenue. A common problem festival-goers experience is the trade off of which musician to see because there are many different acts, on different stages at the same time. But Summerfest is still a fun chance for different generations to enjoy music with their friends, so it is no wonder that the festival is so successful.
ReplyDeleteI've always known Summerfest to be beneficial for our state and Milwaukee, but I never knew how much money it actually brought in. I feel like every year Summerfest gains more publicity which will ultimately bring in even more money. It'd be interesting to see the increase in revenue since it first began. With the rising ticket prices Summerfest will bring in even more money and boost our economy.
ReplyDeleteIt's interesting to see how economically beneficial Summerfest is to the Milwaukee area and Wisconsin as a whole. Not only is revenue generate in the community through food/beverage sales, ticket sales, and rides, but also gives the community valuable opportunities in regard to employment and even performances. Not only are big headliners a part of Summerfest, but so are local performance groups, whether it be children's choirs, dance companies, or young artists that perform earlier in the day. Summerfest is a huge economic asset as you pointed out, and the greatest part about not only generating revenue is the community involvement.
ReplyDeleteIt is no surprise that Summerfest is a huge contributer to the Wisconsin and Milwaukee economy. Bringing such a large festival to the Milwaukee area also benefits local restaurants and hotels too. I am also surprised that the biggest source of revenue is rides because again there are none. I thought the biggest revenue generator would've been tickets or food and drink.
ReplyDeleteWith Summerfest being a world wide known event, it is no surprise that this brings in the amount of revenue it does. The revenue from the Summerfest grounds isn't the only positive aspect that is brought to Milwaukee. This gives Milwaukee job growth during this time period and it gives tourist the chance to come and explore Milwaukee, which also increases GDP. I was surprised that the biggest source of income was the rides because there are very few rides to start with. Overall, it was an interesting article to read about.
ReplyDeleteThis is an interesting topic to talk about considering summerfest is right around the corner. Its interesting to see how much money is actually generated within the festival. To see that the festival generates 226 million dollars really shows how big of an impact summerfest is not only to Wisconsin but the towards the atmosphere. As we can see by the attendances which is about a million fans a year.
ReplyDeleteWith summer fest coming up and many students planning on going I will always think back to this article. It makes sense that the rides would be the most profitable with low costs and the summer fest grounds wouldn't need to split the profit. Overall I feel this was very interesting and informative.
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ReplyDeleteI don't think a lot of people truly appreciate just how much revenue is generated here. I doubt most people take into account all the things there are to spend money on, how many people spend that money, and in what quantities. It's easy to make the assumption that the majority of revenue comes from ticket sales, but when you think about it, there's so much more money that you're spending once you're already inside.
ReplyDeleteKelin Olson
Summerfest is a huge attraction for teens and adults and families alike. I never knew the numbers for money generated were that high, it is true that summerfest is an important part in the Milwaukee economy. Maybe it could get even more popular if they sent a survey out to a select number of people to see what music they would like to see at summerfest.
ReplyDeleteI thought your article was very relevant to today since Summerfest is approaching quickly. It is amazing how much money 1 million people bring into the city. That is about $200 of revenue per person. With the headliner concerts being so expensive, and the costs of food and drink increasing, one can see where this $200 comes from. It would be interesting to see how much the revenue has increased over the past ten years or so. I predict that if Summerfest is successful this year, the revenue generated will be the highest ever. You did a good job incorporating economics terms into your article.
ReplyDeleteSummerfest has to be the biggest event that Milwaukee has, thousands of people come out to Milwaukee for this event. I know a lot of people from Illinois and Minnesota that come out to Milwaukee to attend the Summerfest event. Milwaukee brings in a lot of money during this time and it is a big part of Milwaukee's economy. Unfortunately I will not be able to make it to Summerfest this year because I will not be here in the summer but I will for sure make it to the 2k17 one.
ReplyDeleteI agree that Summerfest needs a good lineup of music artists in order for it to be appealing to people because of their different consumer tastes. If they didn't have a lineup with some major singers, there would be less revenue generated from all of the different parts of the park including rides and concessions because less people would be at the festival. I was interested to see that Summerfest makes 18% of its revenue through sponsorship, which I have never considered prior to reading your article. Overall, I think that due to the lineup this year, Summerfest will generate more revenue than last year and also have more employment and jobs for seasonal workers.
ReplyDeleteI find it interesting that Summerfest is run by a non profit organization. With the amount of revenue it generates I found that shocking. I am wondering what those people who have jobs at Summerfest do during non Summerfest season. It is awesome that the event increases employment, but what happens to those people after it is over? Great post!
ReplyDeleteThis was a great topic! I always thought that Summerfest was run for profit, but it's very cool that it is run by a non profit organization! I thought you did a good job talking about the effects of Summerfest on Milwaukee. It seems like the lineup at Summerfest continues to get better each and every year, so I'm sure they will generate a lot more revenue this year.
ReplyDeleteThis is a really interesting post! I had absolutely no idea that Summerfest is run by a non-profit. This actually makes me respect the event more and I am more likely to go to it. I also find it fascinating how much money is generated for our local economy from the event. I knew that it was a huge event, but I never would've guessed that Summerfest would produce hundreds of millions of dollars.
ReplyDeleteI think that Summerfest is one of many summer events that stimulate an increase in revenue. Other events are baseball games at Miller park, State Fair, outdoor water parks in the dells, etc. Because WI does not typically have nice weather, I believe that there is an increase in revenue during the summer months of June, July, and August. The demand for "fun" activities increases during this time of the year, so the supply of concerts and events increases to match the demand. I believe that this is similar to Florida during spring break. Where their revenue comes in mostly during spring, WI revenue comes in during summer. Nice job on your post!
ReplyDeleteIt's cool to know Summerfest is run by a non profit organization. That makes me respect the whole thing much more. What I now question is that record of being the largest. If you look at other festivals nowadays they seem to draw more big name acts in a span of three or four days than Summerfest does in 11 days.
ReplyDeleteThe fact that ticket sales don't account for most of summerfest's revenue is one of the most interesting things about the event. It shows how important the event is for the area because much of the revenue comes from items that are taxed by the county or state. In addition to that it is interesting how Summerfest is a non-profit. This makes me think that they focus on making it the best experience possible and that they won't jack up prices to make the most money.
ReplyDeleteIt's crazy to see how much revenue Summerfest brings into Wisconsin, let alone the city of Milwaukee. But, I was surprised that the most revenue is generated from the food, drink, and ride and not from the performers that come. Since, that is what Summerfest is mainly about. Even, if they lack in food, drinks and rides there are still going to be making profit because of the performers and many people will pay just to go for the hype of it which brings more money into the money circulation and making Summerfest even more enjoyable.
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