Three Ways to Improve Taylor Swift’s ARPPU: A Game Economist Attends the Eras Tour
At the Eras Tour in Stockholm, my thoughts naturally turned to Ms. Swift’s untapped monetization potential. Despite her billionaire status, she’s barely scratched the surface. By embracing “Taylor’s Version” labeling, Era-specific merch, and friendship bracelet culture, Swift could double her “extras” ARPPU from $50 to $100.
When the Eras Tour comes to town, media outlets scramble for clickbait headlines, and businesses concoct Swift-themed promotions faster than you can say “Shake It Off.” Brands quickly turn the occasion into a LiveOps event and co-opt the festivities. Along these lines, a local cookie shop created branded heart-shaped, glitter-coated “Taylor” cookies, but Swift received no revenue. “Free promotion” is a skeptical defense of using someone’s likeness for profit. Taylor has always maintained good-natured relationships with her fans, and pursuing legal action leaves a sour taste in everyone’s mouth. There’s a sensible solution hiding in plain sight: Taylor’s Version.
Post-Scooter Braun kerfuffle, *Taylor’s Version* became a rallying cry. Why not extend it beyond albums? Let businesses license the label, ensuring fans know Taylor gets her cut. Ka-ching: tens of millions in annual revenue.
The most striking part of the concert (beyond the concert) was the massive cosplay display. Each Era has a corresponding dress: cheerleading, orange riding hood, snakes. None of this was reflected in merchandise, which opted for the “Eras” brand itself, which has a distinct identity, rather than the coagulation of other Eras. It’s a monetization layup to let fans lean more into a specific Era and sell the merchandise. Fans want to explore more of the distinct Era identities.
The silly tip jars at cafes sometimes offer customers the chance to tip into a “Bulbasaur,” “Charmander,” or “Squirtle” cup, giving customers a sense of agency and identity while subtly encouraging them to catch ’em all – or in this case, tip ’em all. Where’s the Swift equivalent? It’s baffling that Swift’s team couldn’t come up with something more fun and engaging than the usual slew of t-shirts and tote bags. At a bare minimum, selling more Era-specific merch in a more fun way could increase conversion from 20% to 30%.
The friendship bracelet phenomenon (yes, I partook) begs for official Swift bling. Web3 taught us people love unique, tradeable items. Swift-branded beads and charms could net $20 per spender at 20-25% attach rate.
Lana Del Rey says, “Swift wants it more than anyone else.” Time to apply that hunger to brand expansion. Ditch the Wegman’s kids’ books; embrace Taylor’s Version of merchandising.
Economist Tyler Cowen notes, “Swift’s ability to capture consumer surplus is nothing short of remarkable.” It’s time for Taylor to shake off hesitation and fully embrace her economic potential.
