Printed in Canada under ISSN: 1920-4299
All copyrights reserved
The Top-Earning Musicians Of 2010
by David Randall
What does it take to become one of the highest-paid musicians of the 2010s? A career that peaked in the '80s. Nearly half of the artists that make up this year's list of the top-earning music acts have been around long enough that they could have appeared on the soundtrack to Back To The Future.
In Pictures: The World’s Top-Earning Musicians
That U2, AC/DC, Bruce Springsteen and Madonna could collectively make an estimated $372 million between June 2009 and June 2010--a little more than half of the $700 million that the top 10 acts in music brought in--highlights the way that the music business has changed over the last decade. Apple's iTunes aside, few young consumers have shown that they are willing to pay for music that they can easily get for free. Album sales have plummeted by more than half since 2000, taking away a lucrative earnings stream for musicians and one of the ways that artists have traditionally broken through into the mainstream.
All of which makes the success of Lady Gaga all the more unexpected. The 24-year-old New York City native went from playing gigs on the Lower East Side to selling out Madison Square Garden within 30 months, thanks to an album that sounded like the best of early Madonna and videos that seemed to come from another dimension where wearing sunglasses made out of burning cigarettes makes perfect sense. With a worldwide tour and million-dollar endorsements with Polaroid, Virgin Mobile and Monster Cable, Lady Gaga netted an estimated $62 million over the last year, the seventh highest on the list. Madonna, meanwhile, came in below her, at No. 8 with $58 million.
Eighties super group U2 made more money than anyone else in music last year, netting an estimated $130 million on the strength of a worldwide tour that sold 1.3 million tickets at an average price of $94 a seat in North America alone. The band, which recently postponed some dates on the tour until 2011, will likely end up in one of the top spots on next year's list as well. Fellow classic rock staple AC/DC followed U2 with $114 million after finishing up a tour that grossed $2.3 million a night.
Acts that began their careers in the '90s--back in the days when it was still relatively easy to make money from recorded music--round out the rest of the top 10. With a net of $87 million, Beyonce once again proved to be the highest-paid female musician and No. 3 overall, though more than half of her total earnings came from endorsements with companies ranging from Nintendo to L'Oreal and from her growing fashion line. Kenny Chesney, whose $50 million in earnings landed him at No. 9, was the highest-paid act in country music last year.
Musicians may be less likely to break the $100 million mark in annual earnings next year, however. The concert business, which has long stood out as the lone bright spot in the industry, is wilting. Live Nation, which recently merged with Ticketmaster to become the most dominant force in the live music business, now serves as an industry bellwether. It recently announced that ticket sales for its top 100 acts dropped 9% for the year, amid a 17% drop in the concert business at large, and it expects sales to fall further.
The real drop in music industry earnings may be yet to come. "Everybody was surprised by how well the business held up last year, despite the economy crashing around us," says Gary Bongiovanni, the editor of Pollstar, a concert trade publication. The biggest fear of some promoters is oversaturation of the market, as the same acts tour year after year without a new album to support. That may soon lead to a decline in both ticket sales and ticket prices. "In today's world artists have to tour to make money because they can't just sit at home and collect their royalties and expect to make their mortgage payments," Bongiovanni says.