Why Beyonce's album changes everything
BEYONCE released her self-titled surprise album via iTunes less than a week ago, and the record-breaking results are pouring in.
According to Apple, Beyonce reached the top spot on the iTunes charts in 104 countries en route to selling 828,773 copies worldwide in its first three days - including 617,213 in the US. That's more than the combined opening week sales of Katy Perry's PRISM and Lady Gaga's ARTPOP, and the numbers make Beyonce's latest effort the fastest-selling album in iTunes history.
The world's leading advertising experts say Beyonce's album launch - with no hype or pre-warning - is a total game changer for the marketing industry.
"Marketing as we knew it is dead," Saatchi & Saatchi CEO Kevin Roberts said in an interview with Bloomberg.
Others are more conservative. An article on CNBC.com points out that few could pull off what Beyonce has done. She has been building up her brand and loyal fan base since her Destiny's Child days in the 1990s.
But the move does suggest that marketing is reverting back to a 1960s styles of "relationship marketing".
"Artists, authors, Fortune 500s, entrepreneurs, and everyone in-between is learning that social media and online marketing can only get you so far. Building great relationships with your customers (or fans) is the single greatest form of marketing you can do. Beyonce's new album isn't successful because she kept it a secret and dropped it out of thin air, it's successful because she has a huge fan base, has poured her life into her brand, and is an incredibly talented human being," CNBC.com reported.
One veteran entertainment lawyer who declined to be named told Forbes : "The fact that nearly 900,000 customers were willing to pay full price to buy this album is testament to the passionate dedication of Beyonce's legions of fans. Most artists have to pre-sell or hype albums by giving away singles on various websites, or streaming the album."
So how does the album impact Beyonce's bottom line? The aforementioned attorney believes the "Single Ladies" singer has already turned a profit on her latest launch, thanks in part to a deal with Sony's Columbia Records rumoured to be structured more like a joint venture than a simple superstar royalty rate of 20 per cent or thereabouts (a spokesman for Beyonce declined to comment for this story and a representative from Sony did not immediately respond to a request for comment).
A partnership-style setup would be particularly lucrative given Beyonce's iTunes launch. Apple typically takes a 30 per cent cut of sales, which would leave 70 per cent, or a little over $11 per $15.99 album sold, for Beyonce and her label. Take out the statutory 9.1 cents for publishing on each of the album's 14 tracks (Beyonce has songwriting credits on the album, but let's assume her co-writers take the lion's share) and you're left with about $10 per unit.
Mainstream pop albums' production budgets can easily soar into the millions, and Beyonce's includes videos for each track, which could push the total cost into the mid seven-figures. But even assuming that she co-financed a whopping $5 million budget, the album's opening weekend alone would have earned Beyonce and her label a multi-million-dollar profit to split.
Of course, those details may be moot. According to a different attorney, Lori Landew of Fox Rothschild, the deal was probably a moneymaker for Beyonce before the album even went on sale, even if her agreement was structured as some sort of joint venture.
"Presumably, Beyonce's deal entitled her to a nice advance payment on sales before a single unit (digital or physical) was sold," she says. "However you slice it, it seems safe to say that her label will work hard to make and keep her happy so that they can enjoy a mutually rewarding relationship now and into the future."
Under this likely scenario, Beyonce won't see another dollar from the album until she earns back her advance, plus any share of production costs added to it. But if big upfront payments run in the family, she's already in good shape - her husband Jay Z's Live Nation deal called for advances of $10 million per album.
As profitable as Beyonce may end up being in its own right, its most valuable contribution to its namesake's bottom line may be more difficult to quantify. The buzz created by the launch should help boost sales for her Mrs. Carter World Tour, for which she is signed up for 26 more dates through the end of March.
She's currently grossing over $2 million per city, and if her album helps sustain the addition of more shows and sell more tickets for her existing winter gigs, the financial impact could be far greater than that of Beyonce's record-setting iTunes sales.
As far as wardrobe malfunctions go, Jennifer Lopez could probably count this one as her worst ever. The 42-year-old singer managed to fully expose her ample ... Full story
- English teacher, 34, arrested for having sex with 17-year-old student seven times
- Loving Family: Man 'had sex with his sister-in-law so that she could get pregnant rather than getting IVF treatments'
- Dougherty Gang sibling Lee Grace posed naked in XXX photo
- Louisa Ball: Real-life Sleeping Beauty who sleeps for two weeks at a time
- High school teacher Carly McKinney, 23, 'tweeted nude photos of herself, called her students JAIL BAIT and talked about getting high'
- How NOT to dive off a diving board
- Is Hamas using human shields in Gaza? UN finds TWO stashes of rockets hidden in empty school next to makeshift housing for 3,000 displaced Palestinians
- Decapitated head of Brazilian footballer Joao Rodrigo Silva Santos found dumped on Rio doorstep
- Not-so-model citizen: Maxim 'Hometown Hottie' finalist arrested in heroin bust
- American Ebola victim is terrified, say his colleagues as they tell how he dedicated his life to Africa and refused to flee with his young family when virus began to spread
- Flight MH17's first pictures of passengers emerge
- Shocking image of toddler sipping a Bud Light at Cleveland Browns tailgate goes viral
- The victims of Flight MH17: First pictures of passengers who perished as Putin blames Ukraine for death of 298 innocent souls - but DOESN'T deny Russian separatists shot it down with missile
- Miley Cyrus tweets x-rated Halloween pics
- Shooting spree in small Texas town of Terrell leaves five dead, Charles Brownlow in custody
- Dontrell Darling: Fla. boy, 9, shot in face in drive-by while sleeping in his home
- 10 ways to improve your body
- Mom, 4 young kids killed in NYC stabbing rampage
- Catholic girls' school teacher admits lesbian affair with student, 17, after plying her with alcohol
- Verizon boosts FiOS uploads to match downloads
- Black hot dogs are being sold in Japan, as seen in viral video
- Antonio Brown accused of dangling child from overpass while drunk and dressed as a clown
- Texas doctor who moved to Africa to help ebola patients has contracted the disease which has now spread to Nigeria after an infected businessman boarded a plane
- Kerry Washington Pregnant, Expecting First Child With Husband Nnamdi Asomugha!
- Little Rascals star Blake McIver now a buff go-go dancer
- Waitress receives rude note - internet response is epic
- Beyonce recreates iconic Rosie the Riveter feminist poster in new photo shoot
- Twitter discloses diversity numbers — most workers are white or Asian
- Police pull four bracelets, four necklaces, 11 rings and bag of weed from man’s rectum
- School football coach slapped with bullying complaint after team's 91-0 win
- White Republican Dave Wilson wins election in inner city Houston after PRETENDING to be African-American in campaign flyers
- Footage of woman with airport alligator shows they took train to Chicago's O'Hare airport
- Shocking new accounts of the carnage at the MH17 crash site have emerged today
- Kangaroo kicks up a fuss in West Texas town, but is it a k-rime?
- From mangled to medical rock star: Shotgun victim who underwent most ambitious face transplant ever performed covers GQ and says he is 'honored to be an experiment'
- Math teacher Ashley Anderson, 24, 'who sent students nude pics of herself' admits to having sex with them
- How not to react in a debate: TV discussion about Gaza and Syria turns violent
- No zoo for you, kid. The US government shutdown hates children
- 'Miracle' baby delivered from dead mother's womb after she is killed in Israeli airstrike
- Microsoft’s parody of ‘Sexy and I Know It’ is most embarrassing thing ever
- Tax-free weekend coming up for Alabama, Georgia
- New York teen arrested after 'killing brother, 15, and brutally beating respected doctor mother into a coma'
- Jennifer Huston's husband begs missing wife to come home
- MN woman Pamela Fahy, NAKED from the waist down busted fleeing bedroom of her 13-year-old's lover by boy's dad
- Mayim Bialik, Husband Michael Stone Finalize Divorce
- Hamas leader's house hit TWICE in Israeli missile strike and global TV station also targeted after day of fighting that saw 10 people killed on Gaza playground attack
- Moammar Gaddafi's daughter-in-law in racy photo
- Wrong-way drunk driver dies in crash that killed two women
- Facebook revenue soars, defies Wall St expectations
- lagos nigeria 23401 ( Nigerian Dating Scam ) 380
- Pastor Samuel Chapman jailed on child sex charges 79
- Asst. Principal’s Son Chandler Brookins Accused Of Rape In School Bathroom 70
- McDonald's Manager Tiffany Allen Accused Of Punching Customer 68
- Mother Of 5 Wazineh Suleiman Missing After Going To Rent Movie 31
- Teacher Ashley Payne fired for posting picture of herself holding beer on Facebook 29
- 15-Year-Old Held In Girlfriend Angel Freeman's Killing; Gun Found In Creek 26
- New Mexico pastor Gregory Griego, woman, two girls and a boy shot dead during Saturday night shooting spree 25
- 'Wrap your legs around my head': Married Fox weatherman Geoff Fox fired after 'inappropriate' sexting chats with female photographer 22
- Teen Alex Dahm charged with drug possession 21
- Marietta Teen James Glover to be Tried as Adult in beating of a 94-year-old man 20
- Syfy's new show 'Defiance' sucks 20
- Dekalb County Teen Marquis Overstreet Found Shot, Killed, Stabbed 30 Times 19
- Joyriding teens Dustin Surrett, Tessa Upton nabbed in stolen Jaguar 19
- 17-year-old Quavante Combs drowns in Lake Lanier 18
- Husband James Felio Killed By Police After Fight With Wife 17
- James Taylor Named By Colleagues As Pilot From Cockpit Rant 17
- Babysitter Loni Bouchard 'had sex with boy, 14, she was hired to look after' 16
- Suspect In Double Homicide Michael Ntiamoah Is Federal Officer 15
- Police: Woman talking on cell caused crash killing 2 15
- Teacher Shannon Schmieder Sentenced to 40 Years for Affair with 14 Year Old 15
- Police: Ex-Substitute Rene Frank Pregnant With Student’s Twins 14
- Colin Kaepernick: Biological mother Heidi Russo wants relationship with quarterback son she gave up 14
- Teens Sarah Riffe, Michael Perry killed by Jeep in east Georgia town 13
- Gwinnett, Forsyth teens Brandon Hodges, Christian Walker, killed in wreck 13
- Tennessee woman Neena Costanza charged in death of her baby girl by her boyfriend 13
- Teen Demarquis Elkins Arrested in Georgia Baby Shooting Death 13
- Emma Watson suffers wardrobe malfunction night out 12
- Fleeing Driver Adam Sides Hits Officer Head-On During Chase 12
- Smyrna Police Officer Curtis Clyde Cook Fired After Drug Bust 12
- 16-Year-Old Son Charged In Crash That Killed His Mother 12
- 3 Pedestrians Hit, 2 Dead near Interstate 675 in Stockbridge 12
- Atlanta Woman Lashawna Threatt Dies after Fall from W Hotel Room 11
- Florida Man Steven Cozzie Held In Slaying of Georgia Teen Courtney Wilkes in Florida 11
- PICTURED: The assistant Melissa Nelson fired by dentist because she was 'irresistably attractive' and 'threat to his marriage' 11
- Teens Jekari Strozier, Antonio Pass, Johnathan Anthony, Kemonta Bonds charged in death of Mableton man 11
- Teen Cheyenne Sauls Killed In Crash; 17-Year-Old Driver Charged With DUI 10
- Daytona Woman Katie Burson Dies After House Party Shooting 10
- Florida woman Danisa Landaeta arrested for drawing picture of bomb on friend's bag at Miami International Airport 10
- Cops: Mableton Woman Chakaya Folborg stabs sister to death with steak knife 9
- Atlanta Woman Crystal Cross Alleges Beating From Ga. State Patrol 9
- UPDATE: Teen Terry Johnson, Charged In Murder of Shakira Hudson 8
- LA Fitness Manager Juhahn Belcher 's Death Ruled Suspicious 8
- Newnan officer Josh Keller shoots girlfriend in abdomen 8
- Off-Duty Officer Shoots Teen In Nightclub Parking Lot 8
- Dunkin' Donuts employee Melissa Redmond busted for prostitution; sold sex out of restaurant 8
- Teenage Boy Cody Riddle Drowns In Boone Lake 8
- Female Driver Priscilla Johnson Charged After Hitting 3 Teens with Car 8
- Pedestrian Latara Worthy run over, killed in Union City 8
- Revealed: Dramatic pictures of Trayvon's lifeless body as new evidence shows Zimmerman bleeding with 'broken nose' 8
Entertainment NewsGet the latest entertainment news from Georgia Newsday!. Find breaking entertainment news, including music, movies, trailers, celebrity gossip, reality tv shows and more.
Rate this article
|PHOTOS: Plastic Surgery Celebrity||Awkward family photos|
|UPDATED: Faces of Meth||PHOTOS: Celebrities all a-Twitter|