With income entirely linked to her music, Taylor Swift, whose concert film is currently a hit in theaters and whose album “1989” is being released in a new version, has developed a unique economic strategy in this industry.
Music undoubtedly nourishes her man, at least his woman. While American singer Taylor Swift releases a new version of 1989 (year of her birth), the album that propelled her to the rank of pop star, Bloomberg News reveals that the artist now weighs 1.1 billion dollars (1.04 billion euros), a rare performance given the fact that its income is exclusively generated by music. This is not the case for other big names in music who owe their fortune to investments in other sectors. “Income from his tours, music sales and streaming, as well as real estate and his catalog of songs make up the bulk of his fortune”reports Bloomberg News, the agency of the Bloomberg media group specializing in economics and finance.
Jackpot with the Eras tour
At the origin of the new billionaire status of the 33-year-old performer, the success of the Eras tour. The Eras Tour could exceed $1 billion in revenue for the first time in history when it ends at the end of 2024, according to American estimates. As for the concert film Taylor Swift – The Eras Tour, released on October 13, it still topped the box office in North American theaters (United States and Canada) during its second weekend of operation in the United States and Canada. Ticket pre-sales had totaled more than $100 million.
“His prolific songwriting, streaming negotiations, and shrewd decision to re-record his first six albums allowed him to achieve massive financial success at a time when musicians were losing influence in the industry”, explains Bloomberg News. Taylor Swift has made herself the owner of her musical heritage, by re-recording her first opuses since 2019, which allows her to benefit directly from it while the music industry rather gives pride of place to record companies, which often own the masters.
A real entrepreneurial strategy
According to the agency’s calculations, its releases since 2019 have generated 400 million euros. Likewise, sales of its concert tickets and derivative products brought in 370 million and those of streaming 123 million. Her real estate assets are estimated at 110 million and she receives royalties of 80 million dollars. The artist and entrepreneur can count on a captive market, her fan base who call themselves the “Swifties”. “The close relationship she has cultivated with her millions of fans has given rise to a demographic more united than any political party,” notes Bloomberg News.
At the beginning of September, the president of the New York Fed, John Williams, estimated that the“Taylor Swift effect” had stimulated the American economy in recent months. The Fed’s Beige Book already mentioned, at the beginning of July, hotel revenues in Philadelphia (Pennsylvania) boosted in May by the singer’s fans. According to economist Maria Psyllou of Britain’s University of Birmingham, the six concerts in Los Angeles in August led to a $320 million increase in GDP.