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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

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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.