Despite a sharp rise in concert ticket prices recently, Generation Z (those born from the late 1990s to early 2010s) views these as "precious experiences" and continues to spend boldly. Their consumption patterns, which prioritize unique experiences beyond just the performance, are bringing a new wave to the cultural industry as a whole.
Crickett Cho, a 25-year-old office worker residing in Georgia, USA, spent a total of $8,400 (approximately ₩11.6 million) attending seven concerts in 2023. Notably, she spent over $4,000 (approximately ₩5.47 million) on Taylor Swift's concert in Toronto, Canada, which included tickets, airfare, accommodation, and merchandise. She emphasized the "live experience" that live music offers, asserting it's a value irreplaceable by streaming services. However, due to soaring ticket prices, she indicated an willingness to selectively attend only the concerts of artists she truly loves in the future.
According to the Korea Performing Arts Box Office Information System, the average ticket price for domestic popular music concerts rose by approximately 44.1% from ₩82,770 in 2020 to ₩119,250 in 2023. This year, tickets around ₩200,000 have become common, with Blackpink concert tickets selling for up to ₩275,000 and G-Dragon concert's highest-priced tickets for ₩220,000. The situation abroad is similar; the average ticket price for the top 100 tours in the U.S., which was $25.81 (approximately ₩35,000) in 1996, surged to $135.92 (approximately ₩185,000) last year.
Despite these price increases, the demand for popular artist concerts remains fervent. According to Billboard, Beyoncé's 'Cowboy Carter' tour, which started at a minimum of $150 (approximately ₩200,000), sold over 94% of its tickets. Resale tickets for Taylor Swift's 'Eras Tour' were traded at an average of $1,088 (approximately ₩1.5 million) in 2023. SEVENTEEN also recorded sold-out shows for their world tour from October last year to March this year, generating over ₩167 billion in revenue.
This consumption trend among Gen Z is largely attributed to FOMO (Fear Of Missing Out). A survey by the U.S. marketing firm Mergify found that 86% of Gen Z respondents had overspent on concert attendance, as concerts are perceived as an "unmissable experience." Concert organizers like Live Nation analyze that fans value the irreplaceable memories live music provides and predict an even faster increase in ticket sales this year.
Several factors contribute to the rise in ticket prices. Besides the surge in concert demand after the COVID-19 pandemic, the overall increase in production costs, including advertising, labor, and equipment, are cited as major reasons. Particularly for large-scale concerts, enormous costs are incurred for stage production and operation, significantly impacting ticket pricing. Furthermore, the adoption of a 'Dynamic Pricing System,' where ticket prices rise in real-time with increased demand, further fuels price hikes.
Concert organizer Ed Traversa mentioned the continuous increase in concert planning costs, implying that rising ticket prices are a natural phenomenon. Moreover, the actual cost for fans to attend a concert far exceeds just the ticket price, as it includes ancillary expenses like parking fees, airfare, accommodation, and food. This reality has contributed to the perception among middle-aged and older generations that "concert attendance is a luxury." Nevertheless, Gen Z prioritizes the value of experience, setting new standards for cultural consumption.
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