Introduction
On Monday, Mexico City’s President Claudia Sheinbaum surprised many when she revealed that she had sent a letter to the Prime Minister of South Korea, requesting the popular K-Pop band BTS to perform more concerts in Mexico. The reason behind her diplomatic effort lies in the significant economic impact of music concerts and the high demand for BTS performances.
The Demand and the Limitation
Sheinbaum explained that over 1 million Mexican youngsters desire to see BTS live, but only 150,000 tickets are available. She had previously spoken with Alejandro Soberón from Ocesa to inquire about the possibility of scheduling more concerts. The response was that only three dates were possible, with no room for additional shows.
Diplomacy and Economics: A Balancing Act
Many have questioned whether it is appropriate for the head of Mexico’s executive to engage in diplomatic efforts concerning entertainment business, specifically music. However, if economic reasons drive Sheinbaum’s decision, she might not be far from the mark.
Concerts as Economic Phenomena
Today, music concerts worldwide hold significant economic relevance. These events have become increasingly sophisticated experiences that impact local and global economies.
For instance, Taylor Swift’s tours have reportedly generated $9 billion in global economic growth (according to Newsweek). The Federal Reserve of the United States has acknowledged Swift’s and her tours’ economic effects multiple times.
Sheinbaum’s Opportunity Amidst Fan Dissatisfaction
The president likely learned about the issue due to the massive number of disappointed fans who were unable to secure tickets through virtual queues, sparking widespread social unrest on social media platforms.
Sheinbaum might have recognized the disparity between ticket supply and demand for BTS concerts, seeing fan discontent as an opportunity to address the growing importance of live music events for young people.
From Enthusiasm to Disappointment: The Ticket Frenzy
Ticket sales for BTS concerts on May 7, 9, and 10 at the GNP Stadium began with a Citibanamex pre-sale on May 23, followed by a general sale on May 24. This led to a collective frenzy, with tickets selling out rapidly at prices exceeding 17,000 pesos for VIP packages.
The Profeco (Federal Consumer Prosecutor’s Office) announced sanctions of up to 4 million pesos against Ticketmaster for lack of transparent information for users. Ticketmaster reported that 2.1 million users attempted to purchase tickets, contrasting with the mere 136,400 available.
Ticketmaster denied any involvement in illegal ticket resale and asserted that they do not use dynamic pricing or algorithms; instead, artists set the ticket prices.
Mexico: A Music-Loving Nation
According to Statista and reports on music tourism, Mexico is a crucial global market for live music consumption. It ranks second worldwide in spending on concerts.
Collinson International’s report indicates that Mexican fans spend an average of 850 USD per trip to attend concerts and festivals, with 28% of attendees exceeding 1,000 USD. Young adults aged 18-34, particularly Millennials and Gen Z, are the primary drivers of this spending.
BTS is no ordinary band; it’s a global phenomenon that significantly impacts the economies of countries where they perform.
Sheinbaum’s Economic Motives
Perhaps economic factors prompted Sheinbaum’s diplomatic move. If she receives a positive response, Mexico could benefit economically while satisfying fans. The outcome remains to be seen.
Additional Notes
The SAT (Tax Administration Service) has repeatedly emphasized its commitment to auditing irregularities and those involved in false invoice schemes, assuring that their efforts target non-compliant parties.
