Mello's Economic Boom

It costs money to put on a six week tour all around Sweden, of course, but the money spent doesn't compare to the money made on the contest. According to one newspaper, broadcaster SVT made about 20 million dollars (120 million kronor) off Melodifestivalen this year. The total includes money from event arrangers who want to sell tickets in their arenas, city officials who want tourists in their town, and advertisers who want their products in the hands of consumers among others.

The contest is serious fun and serious business, which may explain its expansion from one night to six weeks. It's just too lucrative a show for a single evening. Expand the contest and you've effectively expanded your income six-fold. It's good for the broadcaster and good for other companies involved, too.

The promotional powerhouse that is Melodifestivalen creates jobs, sells products, engages songwriters, promotes artists, sells records, requires camera crews, techies, dancers, choreographers, and background singers. It helps city councils by boosting tourism. Hotels and hostels sell out rooms. Airlines, taxis, and bus companies profit. Souvenir seekers buy merchandise and goodies like pink hats and feather boas. And the list continues.

There are no official numbers on the overall economic benefit of the contest. If a study were done, I would suspect the results would show an enormous benefit to the host city, the broadcaster, the ad sponsors, and the arena hosts. The audience is the key to the entire structure. Without viewers, any economic benefits would be negligible. Who knew buying a ticket, a cowboy hat, and a feather boa helps Sweden's economy prosper?

Economic opportunities abound during the contest:

Buy CDs, singles, or pre-order the artist's new albums at this booth. 

Shopping malls get into the act. Artists make appearances and attract the mall's target audience. Sales go through the roof as a result - or so the shopping mall hopes.

"Get ready for the music party of the year!" The more chocolate you buy, the more money you save.

Taxis waiting outside of Friends Arena. This is a small sampling of the dozens waiting to take the festival audience home for the evening. 

Limited edition chips made just for the occasion. These samples were handed out free both before and after the live event.

This scene repeated itself during every stop on the tour. The merchandise booths and company booths were always swamped. The booth on the left-hand side is giving away coffee, hence its overwhelming popularity.

A bus stop ad in Malmö. "Long live Melodifestival freedom". The company wants you to know the shops around Malmö arena will be open late, so you can shop after the concert is over.

A bakery gets into the act. "Malmö sings". This simple ad worked for me.