How much more could Beyonce’s 'Renaissance World Tour' make than Taylor Swift's 'Eras'?
In addition to being exceptionally talented artists, Beyoncé and Swift are excellent business executives.
The experts I interviewed — who have not reviewed their contracts — highlight some business strategy differences and similarities between them:Swift has a more extensive merchandising strategy than Beyoncé. Sponsors and other partnerships can help top artists guarantee high concert proceeds. “Beyoncé’s 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 Beyoncé,” Shaomian explained.Swift and Beyoncé have different brands and varying merchandising strategies.
Swift’s strategy is more extensive than Beyoncé’s. “Swift’s 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,” Shaomian noted. However, Beyoncé’s lack of online merchandising may result in high priced concert merch. “The lack of merch on Beyoncé’s 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,” Shaomian suggested.One thing Swift and Beyoncé share is high average ticket prices. Shaomian told me last month that Swift’s average ticket price is likely $700 or more.
He thinks marketing expenses for “Eras” were lower than normal. “Because the shows were an automatic sell out, the expenditure of huge promotion and marketing dollars to stimulate sales was somewhat unnecessary—thus less of a deduction off the top,” he says.
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