Last month, Singapore hosted Taylor Swift, highlighting Southeast Asia’s growing prominence in the global events industry. The Eras Tour stop was forecast to lead to a 2.9% GDP expansion, yet it also represents a missed opportunity for neighboring ASEAN countries like Malaysia, Indonesia, and the Philippines.

Given such a staggering figure, one cannot help but to wonder how on earth Swift has attained such economic prowess while some of the most iconic artists in the world have fallen short.

Consider Michael Jackson, for example. Swift has sold over 75 million copies of her albums to date, with her 2014 release “1989” alone selling more than 14 million copies. A commendable feat, but it pales in comparison to Jackson, who has sold over a billion albums, and won over 1,000 awards.

However, Jackson died in destitution, while Swift’s net worth soared to an estimated US$1.1 billion, primarily through music-related ventures. What sets them apart?

Their contrasting business strategies.

Utilizing Feedback to Drive Business Strategy

The King of Pop acquired ATV Music - which owned the copyright to songs written by John Lennon and Paul McCartney - in 1985 for US$47.5 million.

This catalog provided a steady income and financial stability, but his other business ventures and failed tours, including Dangerous and HIStory, did not deliver the expected returns.

The absence of a feedback loop is perceived as one of the reasons for Jackson’s financial downfall. Despite participating in the groundbreaking “Simulchat” to answer questions on his music, art, personal life and relationship with the media, the online platform failed to furnish Jackson with crucial data on fan preferences.

Together with his lavish lifestyle, legal battles, large borrowings, and the high costs of maintaining Neverland ranch, it comes as no surprise that Jackson faced bankruptcy in 2009 and was in debt amounting between US$400 million to US$500 million at the time of his death.

On the contrary, Swift’s global appeal can be attributed to her active engagement with her fans. Leveraging data-driven insights, Swift has been able to cultivate a strong digital presence, creating music, videos, and social media content that resonate with diverse audiences.

Employing secrecy as an art form, Swift integrates hidden messages in her lyrics, music videos, and album art for fans to decode. This approach extends beyond music to social media, where she occasionally teases upcoming projects to keep fans on their toes.

Additionally, her decision in 2019 to re-record her six studio albums has proven to be a masterstroke, maximizing value from her music catalog, estimated to be worth US$400 million.

Strategic concert ticket pricing has also been instrumental to her success. The Eras Tour has become the highest-grossing music tour of all time and, according to the Washington Post, set to rake in as much as US$4.1 billion.

The Underappreciated Power of Web3 in Artists’ Success

While Taylor Swift has not embraced Web3 to sell tickets or gain more clout, her career’s trajectory mirrors the ethos of the technology – disruption, empowerment and ownership of the fan relationship.

Web3’s emergence as a game-changer in the entertainment industry aligns with its ability to facilitate dialogue and genuine connections between artists and their fans.

Traditional tactics to boost fan participation can be elevated by fractional ownership of live event intellectual property, while digital tokens can be used to purchase tickets, preventing fans from being victimized by scalpers and scams.

The technology also enhances fan participation through gamification and by allowing them to vote for or co-create content with their favorite artists, making the music experience more immersive and interactive.

An example of this ecosystem is All Access Anonymous. It grants fans tokenized access to real-world experiences that showcase support for their favorite artists and live events while unlocking exclusive perks and rewards.

The prospect of Taylor Swift and Michael Jackson leveraging Web3's capabilities is daunting, but also offers a glimmer of hope for emerging and established artists alike. Acknowledging that the technology opens up new avenues to reach and monetize their work, it is high time artists realize that the future is already here, and that they must embrace it before it is too late.