Leveraging entertainment economy trends in 2024

According to the Vietnam Open Innovation Ecosystem Report 2023, the scale of the entertainment industry market reached $97.47 billion by the end of 2022. The entertainment industry opens up many opportunities and challenges for Vietnamese businesses to explore their potential. To navigate successfully in the entertainment industry, Vietnamese enterprises need to pay attention to which aspects?

"Swiftonomics" - The Economic Growth Catalyst

The phenomenon known as "Swiftonomics" (Taylor Swift's economy) was first coined in July last year by economists at the Federal Reserve of the United States, describing economic growth related to Taylor Swift's concert tours.

Singapore has maximized this unique economic effect to its fullest potential. Recently, Singapore became the exclusive host of Taylor Swift's "The Eras Tour" in Southeast Asia.

Organizers estimate that Taylor Swift's tour generated $500 million in tourism revenue for Singapore during 6 nights of performances. Apart from concert ticket sales, the spending spree related to tourism, including airfares, accommodation, dining, and shopping, has significantly contributed to Singapore's budget.

Bloomberg reported that Singapore's GDP could increase by 2.9% in three months, up to March 31, the fastest pace in six quarters. Economists are predicting that annual economic growth in the Lion City will be 2.5%, higher than the previous forecast of 2.3%. This exceeds the government's projection of 1% to 3% for 2024.

Inspired by the success of its neighboring country, Indonesia has expressed a desire to harness the potential of "Swiftonomics" to boost its tourism sector. Indonesian Minister of Tourism, Sandiaga Salahuddin Uno, emphasized this viewpoint, stating, "We need Swiftonomics to develop tourism in Indonesia." Considering the opportunities that "Swiftonomics" brings, the archipelago government has established a tourism fund worth 1,000 billion rupiahs (64 million USD) to help organizers bid for events similar to Taylor Swift's concerts.

Prime Minister Srettha Thavisin announced that the Thai government will implement a series of new measures to attract prominent figures and celebrities worldwide. Thavisin declared, "We can bring world-class A-list artists to Thailand," emphasizing the government's commitment to enhancing the country's position on the global cultural and entertainment map. One notable measure under consideration by the Thai government is waiving visas and adjusting regulations on the use of alcoholic beverages at concerts and entertainment events.

The New Hub of Concert Tourism

Recently, a host of international stars have chosen Vietnam as their new stopover. Maroon 5, Westlife, Charlie Puth's inclusion of Vietnam in their tours has demonstrated the country's allure to top artists.

The warm and enthusiastic reception from Vietnamese audiences is a crucial factor that has led international artists to seriously consider Vietnam as a potential market. Additionally, Vietnam's improving infrastructure system makes organizing large-scale events easier and more professional.

Not just music festivals, the trend of concert tourism pouring into Vietnam leaves behind valuable figures. The Born Pink World Tour Hanoi 2023 has increased the total number of tourists to the capital by over 170,000, including many international visitors from China, Canada, Australia, Japan, etc. According to estimates by Touring Data (a platform specializing in global tour revenue statistics), these 2 concerts have generated over 333 billion VND.

The Rise of Digital Music

The music market in Vietnam is on the rise, especially digital music. According to Statista, the digital music market in Vietnam is expected to reach a value of up to 10 billion USD by 2026. Amanotes, a game development company specializing in music apps, is actively seizing this opportunity.

Although not widely known in Vietnam, Amanotes ranks at the top of global charts in the mobile music game industry. Established in 2014 by Mr. Vo Tuan Binh and Mr. Nguyen Tuan Cuong, Amanotes competes with renowned names like Cheetah Mobile, RobTop Games, and OrcaMobi.

By 2023, Amanotes' games had attracted over 2.9 billion downloads worldwide, with Magic Tiles 3 and Tiles Hop being the most outstanding products. Remarkably, the United States stands as the largest and highest-revenue market for Amanotes. Furthermore, Amanotes has also expanded significantly in markets such as the UK, Germany, France, Canada, India, Russia, and China.

Leveraging Entertainment Economics for Vietnam

In this context, the performing arts industry, in particular, and Vietnam's tourism industry, in general, need a lever to make breakthroughs. To achieve this, the performing arts industry cannot develop in isolation but must form strong partnerships with other services to attract audiences, especially foreign ones.

Taking a cue from Singapore's story, domestic businesses have the opportunity to lead the entertainment economy by offering unique tourism experiences. By focusing not only on music events but also on exploring local culture and cuisine, businesses can stimulate tourism effectively. For example, events like "Soul of the Forest" or "Mây Lang Thang" generate revenue from food, and accommodation, creating a ripple effect throughout the tourism supply chain.

In the era of shifting music from live to online, business opportunities for startups are also removing many barriers. The case of Amanotes has proven that combining the entertainment economy with technology can bring staggering success. To thrive in the entertainment economy in the long run, startups that grasp this key point will create differentiation and advantages in a competitive business environment.

The government also plays a crucial role in building the entertainment economy, shaping policies, and regulations related to the performing arts industry. Drawing lessons from Singapore's experience, creating conditions for budget support is also a lever to develop the country's entertainment economy.

In conclusion, close cooperation between management agencies and businesses is essential for Vietnam's performing arts industry to make significant breakthroughs for the national economy, development, and competition on the international stage.

For more information on the entertainment economy and emerging economic models, read the Vietnam Open Innovation Ecosystem Report 2023. The report provides strategic databases for businesses in Vietnam, synthesising potentials and challenges for enterprises and corporations through detailed analysis of global trends in innovation and technology, as well as specific situations in Vietnam. Additionally, the report proposes methods and guidelines to support businesses in promoting the innovation process.