With new arenas and sports teams coming to Las Vegas, there is more corporate money being invested in the city and its entertainment.
Some of these entertainment companies’ plans are bigger than Vegas with focuses on international expansion, especially in Asia – Japan will open “integrated resorts” for the first time in five yeas as their government is granting casino licenses for the first time.
The companies investing heavily into Las Vegas and other properties across the country (or globe) have significant value to offer blockbuster talent. Residencies, once limited to DJ’s, are open to any star who can draw a crowd and create headlines.
As the representatives for these acts consider residency deals of all types, there is a lot to think about…
For example, if you are one of the biggest artists in the world, is it better to go to a nightclub where you can get $500,000 a show 12 times a year or to go with a company who will pay $350,000 for 18 shows a year?
Well, which company will sell your alcohol (assuming the artist has their own) across their entire property, showcase it in the club, and give you your own permanent clothing pop-up in the hotel?
Maximizing reach alongside a residency or Vegas venue may not always be the desired outcome. Overexposure or the amount of times the act may want to play in a city like Vegas will be considered.
However, the point is when thinking about building the maximum value add of a residency across business entities, it can span beyond how much the act is paid per show.
Britney being the first youngest superstar to have a residency has been replicated by others, but the results from being the first were surely paramount to continuing to cement her legacy and her future touring success.
Similarly, Calvin Harris and Tiesto benefited significantly from having their faces on the side of the MGM for so many years.
Residences should be thought of as a tentacle of a 360 degree business for an artists. When done correctly, they fuel all other aspects of the artists business, including their music, further creating a circular motion of momentum and success back to the residency itself.