Old rockers never die – they just get rich. That’s the message BRW magazine’s annual list of Australia’s top 50 entertainers, which saw hard rockers AC/DC top the list with gross earnings of $105 million in the last 12 months.
The tremendous success of the group in the last 12 months is underlined by the fact they earned more than twice the amount of the second entertainer on the list, pop star Kylie Minogue, who raked in $47 million.
Third on the list were the perennially popular children’s group The Wiggles ($45 million) followed by actor Russell Crowe ($25 million) and Keith Urban ($20 million).
The explosion in AC/DC’s earnings in the last 12 months can be put down to the release of their first album in eight years, Black Ice. The band is also in the middle of an 18-month world tour that arrives in Australia in the first two months of next year.
According to US entertainment industry trade publication Pollstar, in the first six months of the year AC/DC’s worldwide tour took in $US150.6 million at the box office, with 61 shows in 57 cities.
Of course, it’s not just touring and album sales that have underpinned AC/DC’s extraordinary success. The band has carefully managed its reputation and product distribution throughout its career.
For example, AC/DC has never released a greatest hits album, a decision which forces fans to buy a number of their records to gather their favourite songs. AC/DC’s music is also not available on iTunes, where most other bands allow fans to download individual songs.
The band does not allow its music to be used in commercials, and while it has allowed songs to be used in films, those tracks are never allowed to appear on the film soundtrack albums.
The group also earns a healthy revenue stream through licensing – AC/DC products including everything from t-shirts and underwear to jewellery, glassware and video games.
Indeed, there could be a few lessons for all entrepreneurs in AC/DC’s success, particularly for those companies that sell a premium product – clever brand management, tight control of distribution and strong loyalty from customers are all key to success.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
