Gaga Case Study Essay

1882 Words Aug 28th, 2013 8 Pages
Lady Gaga Case

1) As Troy Carter the option I would pursue for Lady Gaga is the first one which is of continuing with the arena tour. It does not make any financial sense to cancel the show completely given the fact that they have already incurred sunk cost of $4 million in developing the Fame Kills Tour with Kanye West and this amount cannot be recovered. So the third option is out of the picture. In any business, those who take risks can reap great rewards than those who are afraid to do so. Therefore it’s better to build upon the already laid foundation and proceed with the tours than cancelling because of fear of incurring more loses.
The other option is to go for a smaller theater tour. Usually in the music industry upcoming
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This deal enables them to have a share of all the artist revenue streams including concert ticket sales, music sales, merchandising and endorsements among others. More so Agents whose main job is of booking concerts, commercials and tour sponsorships get at least 10% commission deducted from Gaga’s gross profits. So since the small venue tour is not profitable Live Nation, WME, and Hew record label Interscope are likely to go for the arena tour because it has high ticket sales and large capacity and it means high profits if the percentage of ticket sold is 100%. More so to WME it means more money to them due to high gross profit gained by Gaga. The success of the tour results in Gaga’s increase of fame which can bring in more revenues from other avenues like merchandising, commercials or endorsements. So at the end of the day these three partners has a lot to gain hence the reason why they have the same preferences of going for the big arena tour in spite of the risk involved.

4) Gaga’s launch as an artist up to 2009 was a success. Her talent and unique personality opened doors for her. Since it was hard to get new artist music on radio, Gaga began touring in small venues so as to gain popularity. She gained a huge fan base as well through optimizing social media cites and Gaga’s team organized some interviews with about 50 popular music bloggers. As a result the interviews reached

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