Economics of ‘MAMA’ as bridgehead for Korean Wave

Mnet Asian Music Award (MAMA) ceremony held in the Asia World Expo Arena of Hong Kong last Friday was the single largest music event dedicated to K-pop (Korean pop music). This year’s MAMA drew much attention not just as a popular music event but also as an economic model to lead the Korean Wave.

Over 10,000 tickets for the ceremony were sold out in an hour after release. CJ E&M, the event host, estimated that MAMA’s economic effects this year, including ticket sales, advertising revenues as well as intangible brand values, would reach 30 million U.S. dollars. This music event in Hong Kong, to which over 1,000 Korean staff flied for its preparation, contributed to making progress in industries directly related to performance, such as stage setting, visual and lighting industries, and fostering other relevant industries, such as the tourism industry.

With MAMA`s improved status, companies actively use the event for corporate promotion. More than 40 large companies, including China UnionPay, China’s largest credit card company, and Nissan, Sony and Asahi of Japan, sponsored this year’s event. MAMA struggled to solicit sponsors in its first year of 2009, but this year, the number of its sponsors doubled from 2012 and some companies even competed with each other for the sponsorship.

The ceremony was broadcast live on TV or on the Internet in 93 countries around the world. Tudou, China’s largest video-sharing website, also broadcast the show in real time. An official from CJ E&M said, “The economic effects of MAMA this year will amount to 300 million dollars, including direct revenues such as ticket sales, companies’ advertising effects and its contribution to related industries.”