{"id":5765,"date":"2023-05-08T11:50:16","date_gmt":"2023-05-08T15:50:16","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/beyonce-renaissance-tour-could-outearn-taylor-swift-eras-by-600-million\/"},"modified":"2023-05-08T11:50:17","modified_gmt":"2023-05-08T15:50:17","slug":"beyonce-renaissance-tour-could-outearn-taylor-swift-eras-by-600-million","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=5765","title":{"rendered":"Beyonc\u00e9 \u2018Renaissance\u2019 Tour Could Outearn Taylor Swift \u2018Eras\u2019 By $600 Million"},"content":{"rendered":"<div>\n<p>It\u2019s good to be queen.<\/p>\n<p>Beyonc\u00e9 Giselle Knowles-Carter \u2014 also known as Queen Bey \u2014 could clear nearly $2.2 billion from her \u201cRenaissance\u201d World Tour \u2014 some $600 million more than the $1.6 billion Taylor Swift could earn from \u201cEras.\u201d<\/p>\n<p>Those eyepopping estimates are based on the most optimistic assumptions of the number of fans buying tickets at their concerts and high average ticket prices of about $700.<\/p>\n<p>They also assume the artists take home a considerable share of merchandise proceeds and pay tour expenses of 20% of revenues \u2014 leaving them with the other 80%.<\/p>\n<p>\u201cRenaissance\u201d could gross between $275 million and $2.57 billion from tickets alone by the time it ends in September. Beyonc\u00e9\u2019s most optimistic ticket revenue estimate \u2014 $2.57 billion \u2014 is well above Era\u2019s $1.9 billion most optimistic box office.<\/p>\n<p>Due to fans\u2019 pent-up desire to attend in-person concerts at the end of a more than three year pandemic, using optimistic assumptions makes sense to me.<\/p>\n<p>Born in Houston, Texas, Beyonc\u00e9 entered the music industry in the 1990s with <em>Destiny\u2019s Child<\/em>; achieved solo success with number-one albums (like <em>Dangerously in Love<\/em> and <em>B\u2019Day<\/em>\ud83d\ude09 headlined the NFL Super Bowl 50 and so much more.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>Odds are good \u201cRenaissance\u201d could be Beyonc\u00e9\u2019s most lucrative concert tour \u2014 possibly exceeding the revenue she has earned from all her previous concerts combined.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">How Beyonc\u00e9\u2019s Business Strategy Differs From Swift\u2019s<\/h2>\n<p>In addition to being exceptionally talented artists, Beyonc\u00e9 and Swift are excellent business executives.<\/p>\n<p>A key part of the executive job is choosing a business strategy \u2014 making decisions about which products to sell, where to sell them, and how much to charge customers \u2014 and executing it flawlessly.<\/p>\n<p>Both artists pursue a differentiation strategy \u2014 meaning that they charge premium prices for a higher quality product that may cost more to produce. (Another common business strategy, cost leadership \u2014 selling a good product at the lowest price with lower costs \u2014 is probably rare among performers).<\/p>\n<p>The experts I interviewed \u2014 who have not reviewed their contracts \u2014 highlight some business strategy differences and similarities between them:<\/p>\n<ul>\n<li>Swift may retain a larger share of ticket sales than does Beyonc\u00e9.<\/li>\n<li>Swift has a more extensive merchandising strategy than Beyonc\u00e9.<\/li>\n<li>Beyonc\u00e9 and Swift have high tour expenses and their average ticket prices for their 2023 tours are around $700.<\/li>\n<\/ul>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">Swift and Beyonc\u00e9 share of ticket sales<\/h3>\n<p>Swift probably receives between 100% and 110% of ticketing revenues. As David Herlihy, a Northeastern University Teaching Professor and Music Industry Program Coordinator, told me, \u201cHer promoter should be happy to pay her more because he does not have to assume any risk that her concerts will not sell out.\u201d<\/p>\n<p>Beyonc\u00e9 may receive close to that amount. \u201cBeyonc\u00e9 could have an escalating rate (based on number of tickets sold) or a flat percentage per ticket. Considering her prior success, she\u2019d certainly command in the upper 90th percentile or more.\u201d according to my May 6 email from Armen Shaomian, University of South Carolina Associate Professor, Entertainment Management.<\/p>\n<p>Sponsors and other partnerships can help top artists guarantee high concert proceeds. \u201cBeyonc\u00e9\u2019s case sponsors include several major corporations, such as CITI, Verizon, and Tiffany. Her entire Renaissance tour production is handled by her production company, Parkwood Entertainment, and promoted by Live Nation, which drives a greater percentage of the revenue directly to Beyonc\u00e9,\u201d Shaomian explained.<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">Swift and Beyonc\u00e9 merchandising strategies<\/h3>\n<p>Swift and Beyonc\u00e9 have different brands and varying merchandising strategies.<\/p>\n<p>Swift has an extensive merchandising strategy. As Herlihy explained, \u201cAt each venue she would be likely to sell out 30,000 pieces of merchandise at an average price of $80 per item. Thirty percent of that would go to the venue and the remainder would go to Swift and the promoter.\u201d<\/p>\n<p>This initial estimate of her merchandising revenues was low. As he told me in April, \u201cI recently discovered the venues may charge less of a commission [20% rather than the 30%] I originally cited. Also, that commission is within Taylor&#8217;s purview to negotiate down.\u201d<\/p>\n<p>Swift\u2019s strategy is more extensive than Beyonc\u00e9\u2019s. \u201cSwift\u2019s aim is to build a lifestyle brand for a certain demographic. Looking at it from a fan angle, Swifties have access to a plethora of year-round options when it comes to fan merch,\u201d Shaomian noted.<\/p>\n<p>These include 10 \u201cEras\u201d albums she has been selling on her website since January along with \u201chundreds of merch items, ranging from vinyl albums to activity books and ornaments,\u201d he wrote.<\/p>\n<p>Beyonc\u00e9\u2019s website \u2014 which offers downloads of her singles and some of her vinyl records for purchase \u2014 features far less merchandise than Swift\u2019s does and will generate less profit than hers.<\/p>\n<p>However, Beyonc\u00e9\u2019s lack of online merchandising may result in high priced concert merch. \u201cThe lack of merch on Beyonc\u00e9\u2019s online shop could also be a part of her strategy, in that tour-specific merch will only be available for purchase during her concerts, most likely at a premium,\u201d Shaomian suggested.<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">Swift and Beyonc\u00e9 ticket prices and costs<\/h3>\n<p>One thing Swift and Beyonc\u00e9 share is high average ticket prices. Shaomian told me last month that Swift\u2019s average ticket price is likely $700 or more.<\/p>\n<p>Beyonc\u00e9\u2019s average ticket prices could be $685 or more.<\/p>\n<p>On May 6 he told me, \u201cTicket prices are only going up, and there are large sections of tickets on Beyonc\u00e9\u2019s tour dedicated as <em>B-Hive<\/em> and <em>Club Renaissance <\/em>close to the stage, along with some shows where the entire floor level is a standing room club setting (Stockholm for example).\u201d<\/p>\n<p>Such tickets are \u201call sold at a premium. Think of it as a flight having more first and business class seats that are sold at a premium, which pushes up the average fare,\u201d he concluded.<\/p>\n<p>Swift probably keeps 80% of her revenues. As Herlihy explained last year, \u201cShe has to pay taxes, her crew, venue rental, and tour expenses \u2014 possibly redundant trucks, crews, security, musical instruments, and so on. These expenses could range between 20% and 25% of her revenue.\u201d<\/p>\n<p>He thinks marketing expenses for \u201cEras\u201d were lower than normal. \u201cBecause the shows were an automatic sell out, the expenditure of huge promotion and marketing dollars to stimulate sales was somewhat unnecessary\u2014thus less of a deduction off the top,\u201d he says.<\/p>\n<p>Both artists have high tour expenses. \u201cI have seen quotes of 50 semis for \u2018Eras.\u2019 That is huge! I\u2019d anticipate Beyonc\u00e9 being close to that judging by her last \u2018On The Run Tour II.\u2019\u201d noted Shaomian.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Renaissance Ticket Sales Estimates<\/h2>\n<p>\u201cRenaissance\u201d ticket revenues could range from $275 million to $2.5 billion.<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">Conservative Renaissance revenue estimates range from $275 million to $428 million<\/h3>\n<p>In early February, <em data-ga-track=\"ExternalLink:https:\/\/www.billboard.com\/pro\/beyonce-renaissance-world-tour-how-much-money\/\">Billboard<\/em><em> <\/em>estimated Renaissance would generate between $275 million and $428 million in ticket revenue using the following assumptions to generate the $275 million estimate:<\/p>\n<ul>\n<li>Renaissance to host 41 shows<\/li>\n<li>Average ticket price: $200<\/li>\n<li>Share of ticket revenues: 100%<\/li>\n<li>Average revenue per show: $6.71 million<\/li>\n<\/ul>\n<p>With four more shows, Renaissance could generate $300 million in revenue. <em>Billboard<\/em> estimated in February.<\/p>\n<p>By May 7, the number of Renaissance shows had expanded from 41 to 57, according to <em>Ticketmaster. <\/em><\/p>\n<p>Should Beyonc\u00e9 perform at 57 concerts, using <em>Billboard\u2019s<\/em> $6.71 million in revenue per show, Renaissance would generate $382 million in revenue.<\/p>\n<p>Using the high end estimate of <em>Billboard<\/em>\u2019s per show revenue of $7.5 million, Renaissance could generate ticket sales of about $428 million.<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">Optimistic estimate ranges from $751 million to $2.57 billion<\/h3>\n<p>Using more optimistic assumptions about the number of tickets sold at each concert and a higher average price per ticket, I estimate that Renaissance tour revenue could range from $751 million to $2.57 billion. Here are the most significant assumptions I used:<\/p>\n<ul>\n<li>All 57 concerts are completely sold out.<\/li>\n<li>The average concert capacity per venue totals 65,860 fans, based on my analysis of data from each venue.<\/li>\n<li>The low and high average ticket price ranges from $200 (per <em>Billboard<\/em>) to $678, according to <em data-ga-track=\"ExternalLink:https:\/\/www.ticketsmarter.com\/p\/beyonce-tickets\">TicketSmarter<\/em>.<\/li>\n<\/ul>\n<p>The assumptions about selling out these full venues may be overly optimistic, however, the high ticket prices are consistent with Shaomian\u2019s perspective.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Beyonc\u00e9\u2019s Previous Concert Tours<\/h2>\n<p>Beyonc\u00e9 is likely to surpass $1 billion in lifetime gross ticket sales by the time she collects her Renaissance proceeds. As <em>Billboard<\/em> reported, she \u201chas grossed $767.3 million and sold 8.9 million tickets across 375 shows, including those with Jay-Z and the Verizon Ladies First Tour, a co-headline run with Missy Elliott and Alicia Keys in 2004.\u201d<\/p>\n<p>Here are the proceeds of some of her most recent tours:<\/p>\n<ul>\n<li><em>On the Run<\/em> (2014) with her husband Jay-Z grossed $95 million, according to <em>Billboard.<\/em><\/li>\n<li><em>Formation<\/em> World Tour (2016): $256 million, <u data-ga-track=\"ExternalLink:https:\/\/www.complex.com\/music\/2016\/10\/beyonce-formation-tour-earned-over-250-million-dollars\">per <\/u><em data-ga-track=\"ExternalLink:https:\/\/www.complex.com\/music\/2016\/10\/beyonce-formation-tour-earned-over-250-million-dollars\"><u data-ga-track=\"ExternalLink:https:\/\/www.complex.com\/music\/2016\/10\/beyonce-formation-tour-earned-over-250-million-dollars\">Complex<\/u><\/em>.<\/li>\n<li><em>On the Run II (2018):<\/em> $254 million in gross revenue, <em>Forbes<\/em> reported.<\/li>\n<\/ul>\n<p>If Beyonc\u00e9 reaches the high end of my most optimistic estimate, \u201cRenaissance\u201d will far surpass the gross revenues of all her previous concerts.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">How Much Beyonc\u00e9 And Swift Will Take Home<\/h2>\n<p>Beyonc\u00e9 could earn higher proceeds from \u201cRenaissance\u201d than will Swift from \u201cEras.\u201d<\/p>\n<p>More specifically, \u201cRenaissance\u201d proceeds for Beyonc\u00e9 could range between $710 million and nearly $2.2 billion \u2014 using $200-per-ticket at the low end and $648, respectively. That surpasses the profit range of $553 million and $1.62 billion for \u201cEras.\u201d<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">\u201cRenaissance\u201d profit<\/h3>\n<p>Queen Bey\u2019s profits from \u201cRenaissance\u201d derive from the following assumptions:<\/p>\n<ul>\n<li>Gross ticket sales ranging from $751 million and $2.57 billion based on the low and high average prices for all 52 concerts.<\/li>\n<li>Merchandise revenue of about $171 million based on the assumption that she will sell 30,000 items at an average price of $100 (assuming that her prices will be higher than Swift\u2019s since they are only available at the concerts).<\/li>\n<li>Beyonc\u00e9 would keep 80% of the merchandise revenue (per Herlihy)<\/li>\n<li>She would subtract off 20% of her ticketing and merchandise revenue share, per Herlihy, to pay for tour expenses \u2014 keeping the other 80% as Herlihy suggested.<\/li>\n<\/ul>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">\u201cEras\u201d profit<\/h3>\n<p>Taylor Swift \u2014 who is about eight years younger than Beyonc\u00e9 \u2014 potentially has many years to surpass what is likely to be a boffo \u201cEras\u201d box office this year.<\/p>\n<p>Swift could gross between $620 million and $1.9 billion from \u201cEras\u201d \u2014 depending on whether the average ticket price is $215 or $700.<\/p>\n<p>Using similar assumptions regarding her take of merchandise sales at the concerts and tour expenses, Swift would net $553 million \u2014 assuming an average ticket price of $215 \u2014 and as much as $1.6 billion if her average \u201cEras\u201d ticket price is $700.<\/p>\n<p>After a three year pandemic, two great artists \u2014 and business executives \u2014 are charging premium prices to full houses as they cash in on their talent<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/petercohan\/2023\/05\/08\/beyonc-renaissance-tour-could-outearn-taylor-swift-eras-by-600-million\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s good to be queen. Beyonc\u00e9 Giselle Knowles-Carter \u2014 also known as Queen Bey \u2014 could clear nearly $2.2 billion from her \u201cRenaissance\u201d World Tour \u2014 some $600 million more than the $1.6 billion Taylor Swift could earn from \u201cEras.\u201d Those eyepopping estimates are based on the most optimistic assumptions of the number of fans [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-5765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Beyonc\u00e9 \u2018Renaissance\u2019 Tour Could Outearn Taylor Swift \u2018Eras\u2019 By $600 Million | iFintechWorld<\/title>\n<meta name=\"description\" content=\"It\u2019s good to be queen. 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