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Jamie Anderson, Jörg Reckhenrich and Martin Kupp: Lady Gaga Business Model

18th December 2012

Jamie Anderson, Jörg Reckhenrich and Martin Kupp have written a case study for Antwerp Management School on the Lady Gaga business model.

With the music industry struggling in the age of techno-capitalism and with the casual lawlessness of illegal music downloads, one musician is still standing strong. Debut album sales between 2003 and 2010 fell by 77%, yet by the end of 2010, the estimated sale of Lady Gaga’s recordings was fifteen million albums and fifty-one million singles. It is exactly this phenomena that Jamie Anderson, Jörg Reckhenrich and Martin Kupp base their case study on: Gaganomics.

According to these management academics, Gaga’s understanding of social media and digital media platforms has led to her lasting significance. Her protection of copyright, meaning that her videos are free to view and download on her website, have created a good relationship with her fans and they buy her material. As one industry insider stated: ‘Maybe Gaga points a way to the future – to make your fans your trusted friends. After all, who steals from friends?’

The academics also detail how Gaga has rejected being a product ambassador in favour of creating new products for the brands that want her on board. She is a creative director at Polaroid, has her own lipstick range for Estée Lauder’s MAC and has added a new perfume, Fame, to her own brand. Her self-promotion and marketing abilities are second to none.

The study ends with the question of what will come next for Lady Gaga, claiming that: ‘Within just a few years her total income is expected to exceed the total lifetime earnings of rock veterans such as U2.’

Jamie and Jorg have developed exciting keynote presentations on the study.

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