lady gaga case study - ms-digital innovation in marketing...lady gaga case study author: brian...
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GA
L A D Y G A G A C A S E S T U D Y A N A L Y S I S
GA
B r i a n Ra v enna D i g i t a l B r and Managemen t
GAGA
W H I C H O P T I O N
S H O U L D T R O Y
C H O O S E ?
Option 1 - Continue with the arena tour - but go it alone
Option 2 - Develop a smaller, theatre tour - adjusting the economics
Option 3 - Cancel any tour plans
GAGA
O P T I O N 1
W H Y ?Live music revenues are on the rise
Gaga herself is on the rise
January 2009 - Billboard No. 1 spot
One of the most recognizable names in pop
music by late 2009
Growing fan based thanks to Social Media
Huge performance at the VMAs - Tied Beyonce'
for the greatest numbers of nominations (9),
including video of the year and best new artist
Go Big or Go Home!
GAGA
S O H O W M U C H
M O N E Y I S A T
S T A K E ?Option 1
Profits: $40 - $75 million estimated (25 concerts, 16,000-20,000 seats @
$100-$150/ticket)
Costs: $30.75 million ($12 million in production costs + $750K/concert)
Option 2
Profits: $9 - $20 million estimated (25 concerts, 6,000-8,000 seats @
$60-$100/ticket)
Costs: $16 million ($6 million in production costs + $400K/concert)
Option 3
Profits: $0
Costs: $4 million
GAGA
P A R T N E R
D E C I S I O N S ?
It always comes down to money in the end!
Is the risk worth the reward?
Record Labels are just like any other business - they need to be
financially responsible
The Partners will not choose option 1
GAGA
W H E R E T O
F O C U S
A H E A D . . .
Recorded music sales are
historically declining
Concerts are where the money is!
GAGA
C I T A T I O N S
Elberse, Anita and Christensen, Michael. Lady Gaga (A).
Case Study. Boston. Harvard Business School Publishing.
2011. Web 15 February 2018.