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Madonna, has left her decades long relationship with Warner Music Group and signed a $120 million deal with concert promoter giant Live Nation, Inc.
This is the first deal of it's kind to hit the music industry; a major act signing with a concert promotion like Live Nation. Now instead of using different companies to release her records, merchandising and concert planning and promotion, Live Nation will do it all.
Per the Wall Street Journal the terms of the deal are, "The package includes a general advance of $17.5 million advance payments for three albums of $50 million to $60 million, according to people briefed on the deal. Live Nation also is expected to pay $50 million in cash and stock for the right to promote her concert tours. If and when she does tour, though, the promoter will only get 10% of the gross, with 90% going to the artist; that is the standard split for music superstars in the concert industry these days. Income from licensing ventures such as the use of Madonna's name on fragrances or other products would be divided evenly with Live Nation."
Madonna, at 49 years old, has reinvented herself several times and has always been a savvy business woman who knows what the public wants and what will push their buttons. This move of hers reminds me of David Bowie's fight to regain control of his song in the 1980's and his release of "Bowie Bonds" in 1997. By forging ahead, again, in the music industry, Madonna is reshaping the way artists, record labels and other music industry machines for other artists in the future. Her very pioneering experiment will also show another level of how the industry works, or doesn't.
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