The richest person in Chinese entertainment

Chapter 568 Concert Budget and Revenue
When Zhang Chen is fully immersed in preparing for something, time always flies by.

Preparations for the concert were progressing steadily and methodically according to his plan.

He's not the only one busy with this; many more people are busy with it.

Chenguang Group Logistics Department

"Does each concert need to provide at least 50 people with a week's worth of living supplies?!"

"Isn't this unnecessary? The expense is too high!"

"Based on a minimum standard of $10 per person per day, the cost of a single concert would be $500 million. But given the boss's status, it's impossible for him to only provide a standard of $10 per person per day, right?"

Xue Yining looked at the flustered logistics department and sighed helplessly.

She knew how outrageous the request was.

A typical concert at a single venue can last anywhere from one day to a week.

According to the boss's instructions, this is an extra week.

That is to say, a concert would require an additional $3500 million in budget.

But since it was the boss's request, she had no choice but to give the order.

Even if it can't be done, it has to be done.

Fortunately, the group has no shortage of money.

Even Xue Yining herself knew in her heart that this matter was somewhat counterproductive.

Looking at the budget sheet compiled by the handyman department in her hand, she began to weigh the gains and losses in her mind.

Based on the cost of concerts in the United States:
I. Site Rental and Infrastructure:

For example, venues such as the Los Angeles Memorial Coliseum and the New York Giants Arena.

1. Venue rental fee: US$80 - US$150.

2. Temporary facility construction: $40 - $70 (including material costs for portable toilets, fencing, etc.)
3. Power Supply: $30 - $50. (Power grid costs + backup generator set (smaller unit), primarily for modern special effects stage equipment.)
4. Traffic and Parking Management: US$15 - US$25 (shuttle buses, parking lots, etc.)
Total: $165 - $295.

Stage production and technical equipment:
1、主舞台+延伸台：120万美元——250万美元（例如U205年巡演单场舞台成本约150万美元。）
2. Lighting system: $60 - $100.

3. Audio system: $50 - $90 (Meyer Sound or JBL line array)
4、LED屏幕与特效：30万美元——80万美元（麦当娜06年巡演屏幕成本50万美元）
5. Technical team staff: $30 - $50 (for a team of 200 or more people)
Total: $290 - $570.

III. Costs of Artists and Teams:

1、艺人出场费：200万美元——500万美元（麦当娜06年出场费200万美元）
However, the standards differ in this area.

Because her boss, Zhang Chen, is currently the highest-paid celebrity in the world, bar none.

Michael Jackson, who is second in the rankings, has seen his appearance fee rise to $700 million per game in the last two years.

And everyone knows that their boss can earn at least $300 million a day without doing anything.

Therefore, the logistics department quoted a price of $1500 million when estimating the cost.

A price that won't cause the boss to lose money, nor will it cause costs to skyrocket.

Of course, this money was paid by the local organizers of the concert.

The local authorities were happy to pay for it.

Because they can earn that money back in other ways once it's spent.

The simplest example is the influx of people and increased consumption that a concert can bring.

They are optimistic about whether Zhang Chen can boost local consumption.

2、伴舞、乐队、和声：10万美元——40万美元（30人左右，日薪约500——800美元）

There's another surprise here, because the boss's band consists of Avril Lavigne, Yoona, and Sooyoung, plus Liu Yifei, who may or may not be there.

Of course, this was the earliest solution.

LYC members may be busy with their own concerts, even though these concerts are held right after their boss's, this possibility still needs to be considered.

If all four of them were to become members of the boss's band as originally planned, the cost would be enormous.

The appearance fees for the four players are now approximately:

Avril Lavigne: $140 million per game

Liu Yifei: $100 million per performance

Lim Yoon-a: $20 per event

Choi Soo-young: $20 per event

Total: $280 million.

However, this should be the price quoted for an event or concert attended by four people.

If the price were based on the band members' status, it would be reduced by about 30%, to $800,000.

The actual cost in this area is approximately $50 to $120 (with and without LYC).

3. Costumes and props: $15 - $40.

4. Private jet and accommodation: $8 - $15.

Total: $1583 - $1685

Upon seeing the quote, Xue Yining looked pleased and murmured to herself, "I hope the local officials can afford it."

In fact, for a typical singer's concert, this is the only money that the artist's team and the artist themselves can earn.

As for other income, such as ticket sales, which is the bulk of the revenue, it has nothing to do with the celebrity himself.

However, as a multinational corporation, Chenguang Group has branches in several key cities, so the most profitable concerts are held in cooperation with local partners.

The potential profits are too great, and Chenguang Group is not a local power; only cooperation and mutual benefit are the optimal solutions.

IV. Operation and Security Assurance:

1. Security team: $20 - $100 (minimum 300 people)
2. Insurance cost: US$10 - US$200 (US$10 billion liability insurance)

This mainly depends on whether the boss needs additional insurance.

If you include the insurance costs for the boss, Zhang Chen, then this cost will increase significantly.

After all, given Zhang Chen's status and position, necessary safeguards are still required when he holds a concert in a densely populated area.

It's less about seeking compensation after the incident.

It's more accurate to say that Chenguang Group spent money to make the most powerful people in the area take Zhang Chen's safety to heart.

The higher the insurance amount, the more worried the people who received the premiums were about something happening to Zhang Chen.

In various regions, insurance companies that can afford to operate, or those that dare to take on Zhang Chen's insurance policy, all have certain backgrounds in the local area.

This is essentially a disguised form of "toll money".

As for whether the money will be paid by the local host city or by Chenguang Group, that remains to be debated.

But regardless, the costs are still there.

3、票务与客服：15万美元——30万美元（线上票务为主，平台分成比例约10%——12%）

This business was mainly taken over by "Taopiaopiao".

Although it is a wholly-owned subsidiary of Chenguang Group, expenses and income need to be calculated separately during accounting.

In the concert project, this is considered an expense.

4. Emergency medical care: $10 - $20.

Total: $55 - $350.

V. Marketing and Promotion:
1. Advertising budget: $50 - $120 (e.g., a Times Square billboard costs $5 per week).
2. Public relations activities: $10 - $20.

3、周边产品制作：15万美元——30万美元（T恤、海报，按照10%观众购买率，单价15美元计算。）
Total: $75 - $170.

VI. Other Miscellaneous Items:
1、城市许可与环保押金：5万美元——15万美元    2、法律与行政：3万美元——8万美元（合同审查、版权管理等。）
3. Unforeseen expenses: US$20 - US$50 (contingency fund)
Total: $28 - $73

Total of the six items: US$2476 million - US$3145 million.

Overall, if Zhang Chen held a concert in the United States, with a capacity of 10 people per show, the cost per show would be approximately $3000 million.

Xue Yining looked at the cost accounting sheet and was somewhat astonished: "If only the boss could hold a concert in one venue for a whole week!"

Most other singers would do the same.

This can save a lot of costs.

Especially regarding the cost of setting up the venue, you only need to consider the setup cost on the first day and the dismantling cost on the last day; for the rest of the time, you only need to cover the basic maintenance costs.

If other costs are also factored in, the cost can be reduced to at least 70% or less.

“That’s unrealistic.” Xue Yining thought of her boss’s lazy nature and immediately rejected the idea. “Let’s look at the profit margin instead.”

Based on Michael Jackson's standards, a regular ticket for a single concert would cost between $75 and $350.

VIP packages are priced at approximately $1200 to $2500.

Second-hand market premium: $800 - $5000.

After the official tickets sold out, scalper prices skyrocketed, with front-row tickets even being resold for as much as $5.

Tickets for concerts by artists such as U2 and Madonna range from $100 to $500.

Zhang Chen is currently one of the world's hottest superstars, yet he holds the fewest concerts among all singers.

The whole world has been waiting for this moment for far too long.

Scarcity drives up value, and this applies to houses all over the world.

Therefore, concert pricing in the United States has now reached a general range:

Regular tickets: $300 - $2000.

VIP package: $5000 - $12000

This ticket price was determined by numerous professionals and market research.

In this respect alone, Zhang Chen has already achieved something unique in the world.

No singer has ever set such outrageous prices before, and it's unlikely that any singer's concert tickets will reach this price in the future.

Based on the scale of the concert, which is estimated to have 5 to 10 attendees.

Regular tickets account for approximately 50%–90%.
VIP tickets: 10% - 50%
The smaller the venue, the higher the proportion of VIP tickets.

Overall, based on a 90% occupancy rate:

If it's a concert with 5 attendees, the ticket revenue would be approximately $7000 million.

A concert with 10 attendees would generate approximately $1.5 million in ticket revenue.

After deducting the cost of $3000 million per game, the gross profit is approximately $4000 million to $1.2 million.

This is the truth behind the popularity of Zhang Chen's concerts.

Of course, this is a rough estimate of the revenue and expenditure of concerts in the United States or Europe.

If this were in some less developed regions, the ticket price certainly wouldn't be set so high.

However, considering that many people travel abroad to attend concerts, the price will not actually be calculated based on local prices.

However, correspondingly, the costs of personnel, materials, and other aspects will be reduced when holding concerts in these locations.

But the only thing that remains unchanged is Zhang Chen's appearance fee of $1500 million.

In general, the cost of a global concert is between $1800 million and $3000 million.

Ticket revenue is estimated to be between $3000 million and $1.5 million.

Gross profit is approximately between $1.2 million and $1200 million.

"So, have you come up with a solution?"

After keeping track of the concert's expenses and revenue, Xue Yining looked at the logistics staff who were still arguing.

There is another issue that cannot be ignored – the cost of guaranteeing the safety and security of all personnel involved in the concert for one week.

"Assistant Xue, I have a suggestion." A young man raised his hand under the watchful eyes of his colleagues.

"Tell me," Xue Yining nodded, gesturing for him to speak.

Xiao Nian coughed lightly and said cautiously, "What if we turned the area around each concert into a food street?"

"Food Street"

Xue Yining's eyes lit up: "Great idea!"

If the Morning Light Group were to fund the food and other expenses for everyone, the cost would be $500 million per day.

But if it's a food street
This could be an extra source of income!
Even if this extra income goes into the pockets of the merchants, Chenguang Group can still generate revenue through "concert food street merchant membership fees".

If we calculate based on a scale of 10 visits, we would need approximately 100 merchants.

Based on the US's cost of living, the average cost per person is approximately $30.

Based on this calculation, 10 visits would generate an extra $300 million per day in revenue.

If a business charges an average of $100 for a room, that would generate $1 million in revenue.

Of course, the specific circumstances need to be considered separately.

The area around the venue cannot host a food street that can accommodate 10 people.

If people only buy food during the concert, it would be good if about 5% of them bought popcorn and drinks.

However, the boss requires that each person have about a week's worth of food supplies.

If you calculate it this way, the amount of food wasted is absolutely enormous.

Moreover, Xue Yining remembered another request from her boss.

Protection measures for any unforeseen circumstances.

if
"Does a tornado count?" Xue Yining stroked her chin, somewhat uncertain.

"what?"

"Hmm?" Xue Yining saw the people around her looking at her curiously, and quickly waved her hand, "It's nothing, you guys keep thinking."

She wasn't sure if her thought just now aligned with her boss's definition of "any unexpected situation".

However, the frequent tornadoes in the United States are an unexpected situation that cannot be ignored.

Of course, this can still be avoided by checking the weather forecast.

But what if it's something that technological means like weather forecasting can't detect?
E.g
earthquake?

Xue Yining's thoughts immediately began to wander.

On July 17, 2006, Indonesia experienced a magnitude 7.7 earthquake.

On November 15, 2006, the Kuril Islands experienced a magnitude 8.3 earthquake.

February 2, 2007, Solomon Islands, magnitude 8.1.

On August 15, 2007, Peru experienced an 8.0 magnitude earthquake.

There are so many of them, just those at level 7 and above.

If it's level 6 or above, there are countless examples.

If this is how the boss defines "any unexpected situation," then we really have to consider it.

but.
"Is it really necessary?" Xue Yining was skeptical about the necessity of preventing such unpredictable and extremely low-probability events.

(End of this chapter)