Elvis Presley Enterprises Inc. (EPE): Internationalization of a ‘cult icon'
Even more than 25 years after his death Elvis Presley has one of the most lucrative entertainment franchises in the world. Despite the sorry state of his affairs in 1977 the empire of Elvis has thrived due in large part to the efforts of the people who handled his estate after his grandmother died in 1980, including his ex-wife Priscilla Beaulieu Presley, his daughter Lisa Marie and Jack Soden, the CEO of Elvis Presley Enterprises Inc. (www.elvis.com), the company that handles all the official Elvis properties.
Priscilla Presley was involved in the master-stroke decision to open Elvis's mansion, Graceland, to the public in 1982. Graceland gets more than 600,000 visitors per year, according to EPE's website. Over half of Graceland's visitors are under the age of 35. While visitors come from all parts of the world the majority still come from different parts of the United States. The Graceland tour costs US$25, which means that EPE makes US$15 million on those tickets alone, plus what it receives from photographs, hotel guests, meals and souvenirs.
EPE's other revenue streams include a theme restaurant called Elvis Presley's Memphis; a hotel, down at the end of Lonely Street, called Heartbreak Hotel; licensing of Elvis-related products, the development of Elvis-related music, film, video, TV and stage productions; and more. Ironically, EPE gets very little money from Elvis's actual songs, thanks to a deal Elvis's infamous former manager, Colonel Tom Parker, made with RCA in 1973, whereby Elvis traded the rights for all future royalties from the songs he had recorded up to that point for a measly $5.4 million - half of which he had to give to Parker. In 2000, the 25th anniversary was an international spectacle. A remix of the 1968 Elvis song ‘A little less conversation' became a global hit single. Furthermore the CD ‘Elvis: 30 #1 Hits' went triple platinum.
In mid-2004, to commemorate the 50th anniversary of Presley's first professional recording, ‘That's All Right' was re-released, and made the charts around the world, including the top three in the United Kingdom and top 40 in Australia. In mid-October 2005, Variety named the top 100 entertainment icons of the twentieth century, with Presley landing in the top ten, along with the Beatles, Marilyn Monroe, Lucille Ball, Marlon Brando, Humphrey Bogart, Louis Armstrong, Charlie Chaplin, James Dean and Mickey Mouse. By the end of October 2005, Forbes magazine named Elvis Presley, for the fifth straight year, the top-earning dead celebrity, grossing US$45 million for the Elvis Presley Estate during the period from October 2004 to October 2005.
Questions
1. What are the main motives for the internationalization of EPE?
2. What can EPE do to maintain a steady income stream from abroad?
3. What are the most obvious assets for further internationalization of EPE?