Brands Unveil Live Events as Consumers Spend More on Experiences
As consumers splurge on experiences while being more conservative in their retail spending, brands are finding that if they want to capture the public’s enthusiasm — and by doing so, their spending power — they may want to get into the live event space.
Netflix, for instance, announced Tuesday (June 18) that Netflix House, “an experiential entertainment venue,” will open its first locations in 2025, with one in Pennsylvania’s King of Prussia and the other in Texas’ Galleria Dallas. These include experiential offerings, such as the opportunity to dance on a replica of the “Bridgerton” set, as well as restaurants with food inspired by the streaming service’s content and shops with themed merchandise.
Plus, Rolling Stone announced Monday (June 17) a partnership with Sonesta International Hotels to host events, dubbed “Musicians on Musicians,” in Chicago and Miami at Sonesta properties, bringing in “local legends” for the live event series.
Retailers such as Nordstrom, Dick’s Sporting Goods and Buybuy Baby, among others, are seeing that live in-store events prove key to getting consumers in the door.
These initiatives come as consumers shift their spending away from hard products toward making meaningful memories. Companies ranging from Target to Groupon to Mattel have recently noted a shift in spending away from retail products and toward experiences. Malls are leasing more to experiential vendors.
“Consumers are remixing their spending back into services and entertainment outside of their homes after curtailing those activities during the pandemic,” Target CEO Brian Cornell told analysts on a call May, noting that this trend contributed to “continued soft trends in discretionary [retail] categories.”
Consumers, especially younger generations, are placing a higher value on experiences that bring them joy and connection over accumulating material possessions. Research on subjective well-being has become more mainstream, with widespread media coverage on the science of happiness and with podcasts further delving into the subject matter.
As such, younger consumers may be becoming more aware of the consistently reaffirmed scientific findings that spending on experiences contributes more to their happiness than buying objects.
Plus, PYMNTS Intelligence research found that consumers with the most cash to burn are the likeliest to splurge on experiences. Individuals making more than $200,000 a year spend 9.3% of their incomes, on average, on recreation, leisure and entertainment — a greater share than any other income bracket.
And It’s Not Just in Person
Consumers are also exhibiting a stronger demand for live events digitally. More streaming platforms have been adding sports, noting strong, even record-breaking, results from broadcasting much-anticipated games.
NBCUniversal president of client partnerships Karen Kovacs described the appeal of these virtual events for Brand Innovators in a piece Friday (June 14), accompanying the media company’s recently announced The Power of Live initiative alongside this year’s Cannes Lions International Festival of Creativity.
“At the heart of this effectiveness are elements of immediacy and authenticity. Live broadcasts offer a real-time connection with viewers, creating an unparalleled sense of urgency and engagement,” Kovacs said.
“The authenticity of live programming adds credibility to the experience. While consumers are faced with highly produced commercials and sponsored content, these fresh, live broadcasts stand out as genuine and trustworthy,” Kovacs added. “Viewers perceive brands featured within live content as more reliable, which enhances the appeal and persuasiveness.”
The post Brands Unveil Live Events as Consumers Spend More on Experiences appeared first on PYMNTS.com.