U2 on Tour - Investment appraisal and capacity utilisation rolled into one!
Thursday, July 02, 2009
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A fantastic example of investment appraisal and capacity utilisation in this article in the Guardian, which describes the risks and returns of the new U2 tour.
Here is the link to the Guardian article.
There is much rich business studies to be drawn from the material, including:
- The investment ($100m) compared with the likely returns (ticket sales already of $300m)
- How a change in the stage design (a 360degree stage) allows the tour to increase the capacity of each venue
- Lower than average ticket prices encourage bigger audiences (94% full) - with the potential for more add-on sales (tour merchandise)
- How the market for music sales is moving away from recorded to live
Great stuff…
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