Taylor Swift's Exceptional Year Breaks Records as a Business Leader
Taylor Swift's immense economic power this year was not reliant on running a major company or leading a central bank Her commercially successful Eras tour and exceptional business acumen set her apart as a business leader
In 2023, Taylor Swift demonstrated her immense economic power not only as a musical artist but also as a savvy businessperson. Her "Eras" tour sold out stadiums worldwide, with fans splurging on merchandise and the tour film breaking box office records. Swift's success led to her becoming a billionaire.
Swift's extraordinary accomplishments rival those of even the most successful Fortune 500 company leaders. She not only led a devoted fan base who eagerly spent on her projects, but also managed to thrive in an economy heavily reliant on consumer spending. These successes set her apart as a premier business leader, regardless of her official title as "chief executive officer." (As recognized by CNN Business in their selection of CEO of the year.) "She's an undeniable force in the business world," remarked Armen Shaomian, an associate professor of sport and entertainment management at the University of South Carolina, in an interview with CNN.
In recent history, no other company leader has garnered as much customer goodwill, international enthusiasm, and business savvy as Swift. This is why Swift has been named CNN's Businessperson of the Year, adding to the iconic singer's significant impact on the world's wealthiest capitalist society.
The commercially successful âErasâ tour
The Eras tour has been the highlight of Swift's incredible year, and it is scheduled to continue until the end of 2024. According to StubHub, Swift's tour has become the biggest in the ticket company's twenty-year history, surpassing other popular acts in terms of ticket sales.
According to the company's year-end report, Taylor Swift didn't just perform, she revamped the game plan and left a trail of sparkle, economic growth, and friendship bracelets wherever she went. While official sales figures from Swift herself have not been released, some estimates suggest that the tour has already generated over $1 billion. Pollstar estimated that the first 60 shows of the tour grossed more than $1 billion earlier this month.
Earlier this year, an analysis exclusively shared with CNN projected that Swift's shows in North America alone could generate over $2 billion in revenue, making it the most profitable tour ever. The strong demand for tickets led to a significant increase in resale prices, with the average price of a "Eras" ticket reaching $1,607, reflecting a 741% increase from her "Reputation" tour in 2018, when the average resale price was $191, according to SeatGeek.
During the summer, the generous boss shared $100,000 bonuses with Eras Tour truck drivers. The tour itself was a bustling hub of economic activity, moving through major American cities with fans eager to spend their money.
Swifts business acumen
Hotel accommodations in the cities hosting Eras shows were quickly booked, with retailers reporting increased sales as concertgoers sought out clothing to match the tour's theme. Additionally, a Federal Reserve report specifically mentioned the tour's positive impact on hotel revenue in Philadelphia, as noted by a business in the survey.
Swift's business acumen truly shines through in her ability to harness her fans' fervent enthusiasm to boost sales. Devoted supporters eagerly purchased a variety of merchandise, including shirts, sweaters, hats, posters, and other items featuring the singer at the height of her artistry. This serves as a superb example of meeting customer demand and catering to their desires.
"The tour's merchandising was crucial as it enabled fans to take a piece of the experience home with them, capturing the essence of the memories," explained Shaomian of the University of South Carolina.
"People were lining up for hours before the arena opened just to get the first look and chance to purchase merchandise from the separate area. Even if only a quarter of those fans made a purchase, it still amounted to at least a million dollars in sales each night," he added.
In addition to the merchandise available online, Swift offered her devoted fans even more reasons to spend money, from guitar picks to nail gems, and they eagerly took advantage of the opportunity.
Expanding her business strategy beyond the concert stage, Swift also took advantage of the intense excitement surrounding her and her signature tour by venturing into the big screen.
The film "Taylor Swift: The Eras Tour" was released in mid-October, showcasing the singer-songwriter's live performances from the year. In its debut weekend in the United States and Canada, the film brought in an impressive $96 million, making it the highest grossing concert film for an opening weekend in those territories. AMC reported that the film shattered their previous record for highest ticket-sales revenue in a single day, achieving this feat in less than 24 hours.
Which business leader doesn't benefit from some good publicity? In addition to numerous other news stories, Swift was honored as Time magazine's Person of the Year, a prestigious recognition typically reserved for influential figures like Barack Obama, Angela Merkel, and Pope Francis.
"It feels like the breakthrough moment of my career, happening at 33," Swift told Time. "And for the first time in my life, I was mentally tough enough to take what comes with that."
