Madonna Case Analysis

Madonna on Pay-Per-View

Madonna on Pay-Per-View

Madonna is one of the most successful and controversial performers in history. She currently holds numerous world records including “Best-selling female recording artist”, with more than 300 million albums sold ("Best-selling female recording artist | Guinness World Records," n.d.), seven Grammy awards ("Madonna | GRAMMY.com," n.d.) and numerous other major awards, She seems to have an excellent grasp on marketing and business platforms. In later years, her ever-changing business strategy, spanning three decades, has shifted her focus from CDs and music videos to a schedule of year round live performances. Utilizing Per-Per-View programming, Madonna could capitalize on extensive profit building opportunities, while only performing in major cities.

Synopsis of the Case

In 2012-2013, Madonna’s “MDNA” tour consisted of 88 sold-out shows grossing $305 million (Lawrence, 2015) and moving 2.2 million tickets. For her current “Rebel Heart “tour there are 64 planned shows (Stickler, 2015) with the first show set for 9 September already sold out. That said, there is speculation that “Rebel Heart” U.S. ticket sales may mirror its poor album sales in which equaled about half of the “MDNA” album sales (McIntyre, 2015).

While Pay-Per-View is often associated with sporting events, particularly boxing and UFC, this platform has proven very effective for other music entertainers in producing revenue. Acts such as N’Sync and The Rolling Stones have used Pay-Per-View to supplement live ticket sales (Umstead, 2012). The Grateful Dead’s Farewell Tour became the biggest pay-per-view musical event of all time with over 400,000 viewers paying upwards of $80 dollars for the event.

Relevant Factual Information about the Problem or Decision the Organization Faced

Overall tickets sales for Madonna’s “Rebel Heart” tour are predicted to be lower than previous tours. While she still has a very strong fan base, ticket prices for the...