Pop culture can affect the stock market too
This year, three female characters are among the biggest financial highlights: Beyonce, Taylor Swift and Barbie, Pop culture invaded merchants’ trading terminals. In addition, music and cinema exerted their influence on the real economy. As? We show you below:
1. Beyoncé increased inflation
Beyonce has limitless powers. After choosing Sweden to perform her first solo tour in seven years, Beyoncé has been blamed for increasing inflation in the country, which is considered one of the most developed in the world.
The large influx of tourists increased the demand for hotels and restaurants, and the “Renaissance” tour kept prices high. The debut took place in May with two concerts, which were attended by about 45 thousand people each. The issue is that many fans had to live far from the capital Stockholm, where the concerts took place, and this demand pushed up prices in the country.
But, of course, it’s not just Bey’s fault: the Swedish economy has been experiencing inflation for several months. The peak came in December 2022, when it reached 12.3%. The cumulative value growth rate between May last year to 2023 was 9.7%, while the index stood at 10.5% in April. The markets were predicting a recession, the rate of which was around 9.4%.
According to the Financial Times, tickets were cheaper in Stockholm, leading to an influx of tourists. In the Swedish capital, prices ranged from US$60 to 140 (R$290 to R$670), while tickets for the same show in Las Vegas in the United States ranged from US$91 to 689 (R$440). up to BRL 3,300).
2. Taylor Swift boosted the economy
Less unanimous than Beyoncé, Taylor Swift was also responsible for a significant economic phenomenon in pop culture. According to the US central bank, the Federal Reserve, the singer was responsible for boosting the country’s economy with her tour “The Eras Tour”.
According to the Fed’s Beige Book, the singer promoted tourism improvements in Philadelphia, where her concerts were held in May. The result was strong demand for housing and a marked improvement in hotel revenue in the city since the start of the pandemic.
American credit consultancy CreditSites also reported that hotels in the United States reported significant improvements in financial results when Taylor Swift performances took place in their cities. Additionally, Chicago’s official tourism organization cited Taylor Swift’s concert as one of the reasons for the high demand, reporting that the first weekend of June broke the city’s hotel occupancy record.
The splashy marketing for the Barbie feature film debut did not disappoint, and the film has already grossed over US$700 million (R$3.3 billion) at the worldwide box office. It’s no wonder that shares of Mattel, which owns the copyright to the doll, have already gained 19.54% this year.
The brand strategy aims to strengthen Mattel’s core operating arm, which had declined during the COVID-19 pandemic, hit by inflation and higher interest rates. The Barbie film is expected to increase sales of the dolls, which account for more than 20% of the company’s revenue and total approximately $1.5 billion.
Revenue diversification is viewed favorably by the market, especially with the creation of Mattel Films. However, entry into the audiovisual sector is not yet the company’s main focus, in addition to copyright sales partnerships for brands such as Gap, Zara and Airbnb based on the film.