Taylor Swift effect: 4 ways pop star gives economy a boost

Fri, Oct 27, 2023, 3:00 AM

In This Article:

Swifties all over the world can now stream Taylor Swift’s latest re-record 1989 (Taylor’s Version). Swift dropped the album at midnight on Friday. Its release will be another example of how the superstar impacts the economy.

Ahead of her album and 'Eras Tour' movie release, Yahoo Finance spoke to experts across the industry as part of its special coverage, "Taylor-Made Economy." Here are four ways that Taylor Swift has given the U.S. economy a boost.

Financial news

Yahoo Finance’s Josh Schafer broke down the "Swift effect" as it relates to financial coverage. Schafer said, "She's been in financial news really throughout the summer."

Box office

Taylor Swift's Eras Tour film hit theaters on October 12. The film has already sold out 350 IMAX (IMAX) showings across 45 global markets. IMAX CEO Richard Gelfond said, "It's definitely a milestone in the history of cinema."

NFL

Yahoo Sports Senior NFL Reporter Jori Epstein broke down Swift's impact on the NFL and how the two are benefitting from each other. Epstein explained, "This is a growth opportunity for them and the audience in a way that men maybe 18-34 are not."

TickPick VP of Growth Matt Ferrel elaborated on Swift's impact on the NFL and the resale ticket market. Ferrel said, "(The New York Jets game) was one of our top selling games of the year once the announcement was made that Taylor was going to be there."

Ticket sales

Alice Enders, an analyst with Enders Analysis Music Industry, believes that Swift's close relationship with her fans has a direct impact on ticket sales. Enders explained, "With 150 (or so) shows across the world, we're just starting to see the real impact."

Marcus Collins, University of Michigan Ross School of Business Marketing Professor, broke down the marketing power of Swift, which is fueled by her loyal fans. Collins explained, "Her personhood becomes a way by which they represent their identity. And that's super powerful."

Video highlights:

00:00:04 - Yahoo Finance's Alexandra Canal

00:00:13 - Yahoo Finance’s Josh Schafer

00:00:42 - IMAX CEO Richard Gelfond

00:00:56 - Yahoo Sports Senior NFL Reporter Jori Epstein

00:01:15 - TickPick VP of Growth Matt Ferrel

00:01:29 - Enders Analysis Music Industry Analyst Alice Enders

00:01:51 - University of Michigan Ross School of Business Marketing Professor Marcus Collins

Click here to watch this full episode of Yahoo Finance's "Taylor-Made Economy."

Video Transcript

[MUSIC PLAYING]

ALEXANDRA CANAL: The touch points that she has is just remarkable, and it seems like you can't really replicate it. This is the pop star of our generation.

JOSH SCHAFER: She's been in our news. She's been in financial news really throughout the summer, so if we take a look at a timeline of when we've started seeing Taylor Swift, we know that Eras Tour really started in the spring, so that it trickles into economic data into the summer.

She was mentioning the Fed Beige Book, Moody's called out Taylor Swift, there was a question to Fed chair, Jerome Powell, about the Taylor Swift impact, and then Morgan Stanley highlighting at the end of the summer that the end of the Eras Tour is going to mean slower consumption.

RICHARD GELFOND: I don't think there's ever been a concert film like this ever before. It's definitely a milestone kind of in the history of cinema in terms of excitement around a concert movie.

JORI EPSTEIN: These are two of America's biggest entertainment brands with an opportunity to cross over. Why not? Why not lean into it? Why not have fun with video image and photos of Taylor and Travis Kelce's mom? Sweet, I mean, that's great, so they definitely realized this is a growth opportunity for them and the audience in a way that maybe men, 18-34 are not.

MATT FERREL: We did see a fairly substantial rise for the Jets game, and it was one of our top selling games of the year once the announcement was made that Taylor was going to be there. She brings a fan base of her own outside of the NFL audience.

ALICE ENDERS: One of the most important things about Taylor is that she cultivates an incredibly strong relationship, direct relationship, with her fans. There are so many reasons for her fans to get really excited about seeing her and with 150 some shows across the world, you know it's-- we're just starting to see the real impact.

MARCUS COLLINS: She's cultivated a community, not just fans who like the music, but a group of people who self-identify by their membership in the community, i.e. The Swifties, and her person-hood becomes a way by which they represent their identity. That's super powerful.

[MUSIC PLAYING]

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