When Billy Joel returned to live performance in 2013, he decided he’d rather stay close to home. Thus, a monthly residency at Madison Square Garden in New York was born.
His first show under this arrangement was on Jan. 27, 2014, with the proviso being that he’d continue the residency until demand for tickets softened. Few people thought he’d keep playing the Garden for over 10 years. It finally ended on July 25, 2024, after 150 shows, most total sellouts. Only the pandemic prevented that number from being higher.
The amount of money made from these shows is staggering with grosses reaching well north of US$220 million. Each show brought in around US$4 million, not including merch sales. The promoter and venue loved the concept. And the positive economic impact on NYC was profound.
It would be reasonable to assume that James Dolan, the CEO of MSG, conceived of The Sphere in Las Vegas once he saw how well Joel was doing in New York. There were many skeptics as the project was announced in February 2018, just after the fourth anniversary of Joel’s residency. He must have also watched the growing number of artists accepting lucrative residency gigs at various places around Vegas (Britney Spears, Celine Dion, Lady Gaga, David Lee Roth, Mötley Crüe, Aerosmith, and, of course, the king of them all, Elvis.)
After construction costs of about US$2.3 billion, the ultra state-of-the-art facility opened on Sept. 29, 2023, with a stretch of 40 weekend shows by U2.
What was initially seen as a risky and insanely expensive proof of concept has proven to be insanely successful. Over 663,000 people attended those gigs for a box office gross of US$244.5 million. To put that in perspective, U2 grossed in 40 nights 33 per cent of the amount they made on their record-breaking (and hideously expensive) 360 Tour, which required 111 shows over seven legs on five continents and lasted 25 months. With their Las Vegas residency, U2 had five days between shows, which allowed everyone to go home if they chose. Or they could stay in Vegas and relax.
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Many acts dropped in to check out the facility. When I was there on Dec. 1, 2023, Depeche Mode and their people were in the crowd checking things out. Metallica came for a peek a week later.
Phish was sold immediately, playing four shows in April, followed by a run of 30 Dead & Company gigs. Next up: The Eagles with a planned 20 shows (so far) beginning in September and extending into 2025. You can imagine who might be in discussion with The Sphere. The Rolling Stones? Absolutely. Coldplay? That would be an excellent fit. And if I’m Taylor Swift, I’m thinking, “Why am I flying all over the planet for months at a time with a hugely expensive production?”
The latest mega-residency is happening now in Munich. Live Nation and the City built a temporary 80,000-capacity stadium for just 10 shows by Adele over 30 days. If you thought her Vegas residency was wild, the Munich shows will go down in history as one of the biggest concert events in history. Not only does it have a 721 x 90 foot video wall (longer than two football fields), the venue features the largest LED screens ever built.
It’s also part of a larger “Adele World,” an outdoor theme park with a Ferris wheel, a farmer’s market, a big Bavarian beer garden, a pretty nice English pub, several wine bars, and a second stage of additional entertainment. And, of course, lots and lots of merch stalls. While it took U2 40 shows to gross US$244.5 million, it’s projected that Adele’s gigs will bring in US$228 million. For 10 shows. And when it’s all over, everything will be dismantled and the site returned to its original state.
Meanwhile, ABBA Voyage continues in London after debuting on May 27, 2022. People fly in from all over the world to see a virtual residency in the form of performing holograms of Agnetha, Björn, Benny, and Anni-Frid. The time the production is scheduled to wrap up on May 11, 2025, — but don’t count on it, it’s bringing in about US$2 million a week. London loves it, too, estimating that ABBA Voyage is worth about £322.6 million (C$562 million) per year to the city’s economy. ABBA doesn’t even have to get out of bed.
No wonder artists and concert promoters are seriously thinking about adopting the residency model. The act doesn’t have to travel, resulting in huge savings and insane margins. Older acts find residencies easier on their bodies. If the venue is outfitted properly, the audience is offered a higher-quality experience (I can tell you that The Sphere experience is unparalleled). And the local economy wins.
A lovely idea. Can’t you see other world capitals getting in on the action? (London refused MSG permission to build a Sphere there; I wonder if they’re reconsidering?)
The financial losers in all this are, of course, will be the fans. If mega-residency concept continues to build, going to see a superstar act won’t just involve tickets, a babysitter, and parking. We’ll have to factor in flights, hotels, and, in the case of Canadians, a punishing exchange rate with the Canadian dollar for everything else.
This doesn’t mean the end of the traditional tour because not every artist is suited for a mega-residency. But don’t be surprised if you find yourself calling your travel agent a little more often when it comes to concerts.
© 2024 Global News, a division of Corus Entertainment Inc.
