Apr 19, 2024, 2:17 AM PDT
Taylor Swift’s latest album, “The Tortured Poets Department,” dropped at midnight and, unsurprisingly, caused quite a stir. Expected to amass millions of streams within moments of its release, accompanied by a flurry of social media reactions, there’s little doubt it will claim the top spot on the Billboard chart, continuing Swift’s streak of chart-topping albums.
However, despite the album’s anticipated success in terms of certifications and streaming numbers, it is unlikely to be Swift’s most lucrative venture this year. Instead, the remainder of her Eras Tour, commencing in Paris next month and running through December, is poised to be the primary contributor to her wealth, estimated at $1.1 billion by Bloomberg last year.
“Live music is the engine of the global music business,” stated Clayton Durant, founder of CAD Management and adjunct professor at NYU Steinhardt’s Music Business Program. “Her tour is probably going to earn 10 to 15 times more than her streaming.”
Last year alone, Swift’s Eras Tour generated over $1 billion in ticket sales across 66 dates. With an additional 86 shows scheduled for this year, Swift stands to earn a considerable sum from ticket sales alone, likely totaling nine figures based on industry standards.
Concerts also yield revenue from merchandise sales, with Swifties spending an average of $40 each on merchandise at her shows. In 2023, this translated to approximately $175 million in gross merch sales, the majority of which goes to Swift’s camp.
According to estimates by Bloomberg, Swift pocketed around $225 million from box office and merchandise sales from the initial 57 dates of her Eras Tour. Career earnings from ticket sales and merchandise account for 34% of her total net worth, compared to 18% from music streaming and sales.
Swift’s success in live music highlights a broader trend in the industry, with many top earners deriving the majority of their income from touring. Streaming has transformed the music business, shifting the revenue model from physical sales to live performances.
While Swift continues to generate substantial income from streaming and record sales, her ability to command a significant share of streaming revenue depends on the size of her audience. Last year, she was the most streamed artist on platforms like Apple and Spotify, with her music accounting for a significant portion of total streams.
In addition to streaming, Swift also enjoys considerable success in physical music sales, particularly in vinyl records, where she accounted for a significant share of sales last year. For Swift’s devoted fanbase, physical records serve as both a symbol of fandom and a means of supporting their favorite artist.