Could it be a new business model for the music industry?
Madonna and Live Nation Inc officially announced a deal today (October 16) that will give the concert promoter a stake in her albums, tours, merchandising, films and other projects.
The financial terms of the 10-year deal were not disclosed, but it is rumoured to be worth approximately $120 million over 10 years.
In a joint statement issued today by Madonna and Live Nation, the singer said: “The paradigm in the music business has shifted and as an artist and a business woman, I have to move with that shift.
“For the first time in my career, the way that my music can reach my fans is unlimited. I’ve never wanted to think in a limited way and, with this new partnership, the possibilities are endless,” she added.
Live Nation‘s President and Chief Executive Officer Michael Rapino said: “Our partnership is a defining moment in music history. I am thrilled that Madonna, who is also now a shareholder in our company, has joined with us to create a new business model for our industry.”
An industry insider told the Associated Press that, under the terms of the proposed deal, the 49-year-old pop star would receive a signing bonus of about $18 million and a roughly $17 million advance for each of the three albums stipulated.
A portion of the compensation would involve stock, and the deal will reportedly give Live Nation exclusive rights to promote Madonna‘s tours.
Madonna was formerly contracted with Warner Brothers Group Corp, and her contract still calls for her to deliver one more studio album, expected next year, and a greatest hits record.
–By our Los Angeles staff.