Singles and inflation drive up entertainment market

How macroeconomics, family constellation and showbiz depend on each other

Rising ticket prices continue to outpace inflation. Despite this, Kazakhstanis choose to attend entertainment events even more frequently.

According to Freedom Ticketon, over the first six months of 2024, the average concert ticket price was around $59, which is 37% more than last year. Inflation has certainly played a role in this, as the cost of equipment and labor has risen. However, the ticket price surge was four times as high as inflation, which stood at 9.8%. How is this possible?

As far as we are concerned, changing and growing demand is the main driver for price increases.

The country’s economy is growing. According to the Bureau of National Statistics (BNS), per capita income reached approximately $2,400 in 2023, a 20.5% increase from 2022. Meanwhile, consumption amounted to approximately $2,200, reflecting a 15.2% growth. Kazakhstanis can currently spend more money on entertainment thanks to a rise in their incomes and more idle money available. We can see this reflected in the supply statistics. In 2023, Kazakhstani theaters held 16,500 events (a 7.4% increase compared to 2022), concert halls organized 6,400 events (an 8.8% increase) and theme parks hosted 7,100 events, reflecting a 5.1% increase. Last year, the number of mass cultural events was back to pre-pandemic levels for the first time since 2019.

Outstripping price growth suggests that the demand is still exceeding supply by far, even though the market is trying to meet consumer needs. For example, show organizers have diversified their events. New options to buy a ticket have appeared, like installment plans, unheard of just a few years ago. The scale of events has also grown, with more foreign artists performing in Kazakhstan over the past two years. In 2023, many world-class celebrities made their way to Kazakhstan, including the Black Eyed Peas, Akon, 50 Cent and Jason Derulo. We should not forget about sold-out concerts by Scorpions and EVE in 2024. The organizers of Dimash Qudaibergen’s concert dared to try something different; due to the excessive demand for tickets, the singer will perform at Astana Arena for two days in a row (Sep. 13-14). Tickets for the first day are nearly sold out, while tickets for the second day are selling like hot cakes.

Demographics also play a role in shaping the supply structure. For example, among people under the age of 25, a larger proportion of ticket buyers are male. However, women purchase nearly 65% of tickets in the 25 to 50 age group. We can link this to typical behavior patterns, one of which is the average marriage age, which is around 26 years in Kazakhstan. Before this point, young men generally take the lead in asking women out. However, after starting a family, women often take over planning leisure activities. Even when many of these purchases are made with the husband’s card, the actual decision-making still leans toward women in this age group.

The age of marriage is gradually increasing. Ten years ago, women typically married at age 24.4, while men married at age 26.9. Today, the average marriage age has risen to 25.2 years for women and 27.8 years for men. Meanwhile, the marriage rate is also decreasing. Even though the general population is growing, 5% to 8% of people opt not to marry each year, although the divorce rate is also declining.

As more people embrace singlehood, the age at which women begin to lead in purchasing tickets is likely to shift to a later point. We may expect events targeted at a mature, unmarried audience to overlap with family-oriented performances. Singles generally tend to be less restricted in their time and money spending plans, which fuels the demand growth. Thus, the market strikes back, offering completely different exclusive events such as outdoor concerts at vineyards or outdoor mass sporting tournaments. We can also see previously unpopular genres thriving in the market, like immersive theaters. If demand continues to grow, the entertainment market will expand further, and prices are likely to keep rising.