Thursday, December 22, 2016

Music Festivals and the Economy

Music Festivals and the Economy
By Sophia Buss
I’m sure that most of you have heard of different music festivals that go on throughout the year; EDC (Electric Daisy Carnival), Electric Forest, Summer Camp, Winter Warmer and so on. These events have always been known as something fun and carefree to go do with a group of friends. Almost like- really intense, extended camping. But have you ever thought about the effects all these events have on the economy? If they’re positive effects or negative effects?
So it turns out that there are even greater benefits to music festivals than feeling free and letting loose for about a week... It’s actually a great boost for the economy! Most festival goers have to do a decent amount of traveling to get to whatever event they’re attending. When traveling around similar to a vacation- people tend to spend their money as if they’re on vacation. Local firms, restaurants and hotels have claimed to see the rise in their sales while festivals are going on near by. Not only do the festivals benefit locals, but it also creates jobs. The equivalent of about 25,000 full-time jobs were created. Insomniac, a dance-music promoter, has 48 events that have supported some $180 million in taxes for state and local governments. Though a couple billion dollars may not seem to be very much in comparison to America’s gross domestic product- GDP (that totals above $16 trillion) it’s pretty impressive for a mass amount of kids running around and dancing in an enchanted forest covered head to toe in glitter and dirt- it’s quite the sight.  
Music festivals have improved and evolved since the early 1990’s and could now be considered to be stable businesses- promoting “buying sprees” to festival goers. It is a possibility that these events are becoming more and more popular not only because they’re obviously fun, but they can also greatly increase consumption and generate jobs.
One of the only disadvantages to having these events are that sometimes the local residents complain about noise or crowds beginning to get too “rowdy”. But after going over all of the benefits of festivals and seeing that this is the biggest downfall, why not continue to let the festival community grow and expand? Let loose, have some fun and give the economy a little boost!
Cited Sources

@bizjournalism. "Entertaining Business: The Impact Of Music Festivals." Reynolds Center. N.p., 21 Mar. 2016. Web. 22 Dec. 2016.
Shah, Neil. "How Music Festivals Pump Billions into the U.S. Economy." The Wall Street Journal. Dow Jones & Company, 31 July 2015. Web. 22 Dec. 2016.
"New York's Classical Music Radio Station." WQXR. N.p., n.d. Web. 22 Dec. 2016.


16 comments:

  1. I never really realized that music festivals bring in so much money in so many different ways. I know that they're very expensive for only admission, but taking camping, food, merchandise, and other purchases festival-goers make into account? That's a lot of money for just a few days. When people are all hyped up about some concerts, they are more influenced to buy things that they wouldn't usually think to purchase. This is probably the reason that festivals are able to rake in so much money; because they can sucker their customers into making an in-the-moment purchase.

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  2. And a great thing about our area is the prevalence of summer venues for shows. Not only are the Summer fest grounds located in Milwaukee, but we also have Alpine Valley Amphitheater to the south, in East Troy. In our area, we're very fortunate to have these concert destinations... for the summer at least. A smaller downturn to the large scale events is the amount of crowd control that's expected from local law enforcement, which can be controversial to some extreme T.E.A. party members, I guess. So, at least in our area, we have a couple of communities that are heavily dependent on the success of our local festivals. It would be nice if we had better indoor facilities. I mean, the biggest venue for alternative musicians is Eagles Ballroom, which, from my concert going experiences, is a dump.

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    1. I agree with you all the way with believing that these music festivals create a positive impact on our economy. As you know those tickets are very expensive but all for a whole reason, and it covers for a lot. And with each year and new music more and more money is being spent. Just like you said about people making it feel like a vacation which it really is! Its a great get away and a great way to spend all of your money! Also with all the people working at the festival location, are mainly just a lot of locals who just will say they will work and give a helping hand to all the work needed. Mainly with the set up then the clean up.

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  3. I didn't really think about how music festivals tend to bring in so much money for the the things that are surrounding the area that the music festival is in. For example the hotels, and restaurants that are surrounding it. The festivals also bring in a lot of money for admission, so these music festivals do bring in a lot of money overall and improve the economy.

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  4. I agree that concert venues and events are very profitable and worth while for the economy. People are willing to pay ridiculous amounts to see their favorite singers and performers. Economists can make use of this to make a very valuable profit. I'm sure lots of restaurants and caterers also make use of concert venues because they know people are going to be hungry/thirsty while waiting or during the concerts so it would be smart of them to make an appearance and make easy money.

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  5. Music Festivals are indeed extremely popular and help out the economy from not only the traveling, but all the spending that comes with the festival. For example, the tickets for a music festival are able to be raised since the demand is so high. Also, if people are spending a day at a festival, the suppliers of the festival have to be ready with a lot of supplies like food, drinks, and even apparel. Here in Wisconsin, obviously Summerfest is a HUGE event. I know I look forward to this musical festival even with the obnoxious ticket prices and over priced Saz’s platter, I still find myself participating in buying these items. Clearly musical festivals are more than just music and food, but also they help significantly boost the economy.

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  6. While some may deem what tends to be excessive spending due to festivals and all they entail, apparently they benefit the economy. I hadn’t considered all the jobs created by festivals with the the food that accompanies them, the entertainment, maintenance, and all the additional vendors and shopping. Surely they contribute minutely to the GDP. I am curious to see if and how festivals continue to increasingly benefit the economy. I guess if they not only benefit the economy but the spirit of the nation, although frivolous, festivals are a good thing.

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  7. I've never thought about how much of an impact that musical festivals have on our economy, and I'm glad that you brought this topic up. I feel like most people just think it's a bunch of stupid kids doing bad things, and listening to music. However, you've proved that it's so much more than music and friends. It's about building relationships with new people, traveling with friends, and of course, listening to good music all day and night. I never actually knew how much money these festivals made and boosted our economy.

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  8. I really like this article! I think the economy boost that these festivals bring is extremely underestimated. Festivals, although it annoys me, are super smart in making coolers and personal food not allowed beyond the gates. They raise their prices until they are at the point where are unreasonably high, but people will still buy these goods because they are scarce and have a higher value now. That also goes with the tickets. If someone really wants to go to Electric Forest, they'll have to fork over the cash because there is no other substitute. You made a great point highlighting the amount of jobs made. Many more music artists are now being discovered, more security jobs are available, and vendors have more opportunities to sell their products.

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  9. I heard about some music festivals through Youtube and other advertisements but I never knew that music festivals are such a big deal and how they boost the economy for their respective states. I wonder whether music festivals take contract with state governments because the festival producers know that they get high revenue than they expect and I feel like that revenue is shared between the festival owners and the state government. Usually, music festivals or state fairs don't last for a long amount of time because if they do, consumers will come at their own time but due to the limited time or limited resource, consumers some how try to use the limited time to enjoy the festivals, which inturn, its a big advantage for the festival producers. It was surprising on how these festivals have 25,000 full time jobs, I always thought that people worked as part-time but I guess it has been changed.

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  10. Not surprising that these events collect so much money, but it is cool how a show that's so fun for the people coming to it is such a boost to our economy. Even if nearby people temporarily get mad, the benefits outweigh that downside without a doubt.

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  11. This article was really interesting and you brought up some great points! I never really thought about how much money goes toward music festivals. Buying tickets for these festivals are usually priced very high which makes for a great profit for the companies. Given that there is limited space and availability at these festivals, people are willing to pay as much needed in order to attend. Given that the demand is so high, it makes it easy for companies to boost the price of tickets because they know people will still buy them. I also think it is smart how the companies don't allow food and beverage beyond the gates. Festival goers are then forced to by the highly overpriced food because they have no other option. This makes for an even larger profit for the companies. It was great how you mentioned all the jobs being made as well. I never really thought about that aspect, but the amount of work put into these festivals needs a ton of employees and assistance. Lastly, I liked how you mentioned that local businesses in the area also receive a benefit in a sense that people treat going to the festivals like a vacation. By attending these events, companies are able to make more money because more people are in the area and needing to utilize local businesses.

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  12. I agree music festivals bring a lot to the community, economically and culturally. Many people stay overnight, which could bring in revenue for hotels and other housing businesses. Restaurants and other businesses would greatly benefit from these festivals as well. The fair or festival itself brings in numerous jobs. I don’t see any other downside other than sound or possible violence or maybe alcohol/drug problems, but with increased police presence and security, this can be managed.

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  13. I think that the economic boost that festivals bring to the economy is outstanding. I liked the point you made that festivals bring in a lot of full time jobs, because I think some people may see them as not having staff on hand but when you think about security and other things like that it is easy to see how many jobs are really being filled there. It also adds a boost, because if people want to go to any music festival anywhere, they have to turn over the money in which to get in, you can't just walk in and never pay, and although it's annoying that the prices are so high it doesn't really matter because people will pay anyways. Overall, I think you made really good points in this article, and I completely agree that festivals have a large impact on the economy!

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  14. The impact these musical festivals have on the economy is great. It is crazy to think about how much individual events and activities like this can help the economy out. Not only does the travel help out the economy but at these events people are buying food, drinks, and probably some souvenirs that would also help out the economy. Overall, these musical festivals are beneficial to the economy but also seem like a lot of fun too.

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  15. As someone who will be going to the closest EDM festival once I hit the age 18 (legal limit for most of the festivals) I plan to enjoy myself and live life at them with some friends. I have known for awhile that EDM festivals are a large market, but you could have also thrown in other festivals like Wisconsin’s Summerfest. It is for all types of music and brings in giant revenue for the state. And just like at festivals, hotels shoot up in money and cost and so many restaurants get more than usual income because of stands on the Summerfest grounds. And another downside you forgot to mention was that EDM specific festivals have a higher rate of death thanks to drugs being taken there to make the music sound even more amazing.

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