Apple Music’s $50M Annual Sponsorship Deal for Super Bowl Halftime Show with NFL.
Apple Music annually allocates $50 million to sponsor the Super Bowl halftime show, yet Usher won’t benefit from that sum. Instead, he’ll perform without payment, utilizing the platform to expand his fan base, boost ticket sales, and enhance streaming figures.
Here’s the breakdown:
The Super Bowl has featured performances by some of the globe’s biggest stars:
• Prince
• Michael Jackson
• Bruce Springsteen
• Beyonce
• Justin Timberlake
• The Rolling Stones
• Rihanna
However, NONE of these artists received payment for their appearances.
Here’s the financial breakdown:
• The NFL secures a $50 million sponsorship agreement.
• Artists receive approximately a $15 million production budget.
This budget encompasses payment for 2,000 to 3,000 part-time staff, covering various roles such as set design, security, dancers, and marketing.
However, none of this money goes directly to the artists themselves.
Indeed, certain artists find themselves investing millions of dollars from their own pockets into their performances. For instance, The Weeknd allocated $7 million of his personal funds for his Super Bowl 55 show, while Dr. Dre reportedly did the same in 2022.
So, what motivates them to make such significant investments?
EXPOSURE:
With a viewership of 115 million people, the Super Bowl presents a massive opportunity for visibility.
While brands shell out $7 million for a mere 30-second commercial slot during this year’s game, Usher will enjoy an uninterrupted 13-minute promotional spot at no cost.
This exposure proves to be more valuable than any performance fee, supported by data analysis.
• Following Super Bowl 52, Justin Timberlake witnessed a remarkable 534% surge in music sales.
• Travis Scott’s performance fee skyrocketed from $500,000 to $1 million after Super Bowl 53.
• Jennifer Lopez and Shakira collectively amassed 3 million new Instagram followers post-Super Bowl 54.
Rihanna’s impact was equally astounding:
• Securing the top spot as the most-streamed artist worldwide
• Placing 17 songs in Spotify’s Top 40
• Garnering an additional 3 million followers on Instagram
• Experiencing an 833% increase in searches for Fenty Beauty.
Even more astonishing, Rihanna’s performance drew in more viewers (118 million) than the game itself (115 million) on average.
With this in mind, it’s no wonder Usher is strategizing carefully.
Usher is set to launch his new album “Coming Home” just two days before the Super Bowl, aiming to propel it to the top of the charts with his performance.
In addition to this, he has secured multiple endorsement deals and will even feature in a commercial.
However, Usher’s major move is to promote his upcoming tour.
StubHub reports that artists typically experience a 50% surge in concert ticket searches after performing at the Super Bowl, and The Weeknd sold 1 million tickets post-performance.
This strategy sets up a win-win scenario.
The NFL gains the participation of one of the world’s premier artists for its flagship event at no cost, while the musician secures a 13-minute advertisement in front of 115 million people for a fraction of the price that brands pay.
This is why artists readily agree to perform for free.
