Live music will drive ‘Funflation’ as consumer spending slows says BoA analysis
There’s good news for musicians and the live music sector in a new report from Bank of America analyst Jessica Reif Ehrlich.
According to the analysis, funflation – the post-pandemic surge in consumer spending on live experiences – will continue to be driven by live music even as other consumer spending slows.
Some economists are concerned that discretionary spending will nosedive as consumers spend down their pandemic savings and delayed student loan repayments for core concertgoers resume.
Not so for live music, says Ehrlich, offering several “sustainable and longer-term key drivers” that she says will fuel solid growth for a number of years.
- Continued consumer spending shifts toward services and experiences, particularly among the younger millennial and Gen Z population
- Strong pricing power amid increased demand
- TikTok and other social media driving increased global fan awareness
- The “disruption-proof” nature of live events, with virtual events and livestreams failing to deliver a comparable experience
- Growth in sponsorships and experiential marketing
“Live entertainment is currently the brightest star in the broader media and entertainment universe,” wrote Ehrlich.
The study also breaks down the live entertainment value change and names key players.
Read the full Bank Of America “Funflation in full force” report here.