at 21:19 on October 10, 2007, EST.
By THE ASSOCIATED PRESS

LOS ANGELES - Madonna intends to sign a $120 million recording and touring deal with live entertainment promoter Live Nation Inc., according to a person familiar with contract negotiations between the pop superstar and her longtime record company, Warner Music Group Corp.

The person, who spoke on condition of anonymity because of the confidential nature of the matter, said Wednesday that Madonna's management told Warner last week that she would accept Live Nation's offer after the record company refused to match the deal.

Madonna's last contract with the New York-based company calls for her to deliver one studio album and a greatest hits record.

Warner Music and Live Nation declined to comment. A call to Madonna's publicist was not immediately returned.


©The Canadian Press, 2007

I also read that Warner still retains the rights to her catalog with them.

luv4u said:

this would give her a 4th hits collection with warner bros.

immaculate collection
something to remember
ghv2
*new*

5 if you want to include you can dance as a collection

anyway...i don't care too much who she signs with from a fan's perspective. as long as the music keeps coming. though i feel WB have shot themselves in the foot with this one. i'm sure Madonna and her lawyers inked some kind of agreement about the masters regarding use and royalties.

live nation is cleaning house in the music business.

CHIC0 said:

i wonder how this will affect Madonna's airplay because of LiveNation at one time being part of Clear Channel, and still being kinda connected to them.

ehuffnsd said:

good question. i'm not sure. i think they will make her a major priority at the label though. i think airplay, though still a factor in chart positions, has taken a back seat to downloads and other internet venues. i think promotion on a larger scale (i.e. displays, appearances,concerts, commercials,etc..) is what will drive sales. i've not really sat and listened to radio that much in the last several years, but one station in particular is ALWAYS playing Madonna. more than once i've gotten into my truck in the morning on the way to work and Madonna is on...then when i get in to drive home, she's playing again. so needless to say i can't put in a cd until the song's over.


not sure if you know or have heard anything about this...but.
i was told and then read about Madonna not getting airplay (in the U.S. anyway) because of her anti-Bush stance and that there was some affiliation between clear channel and the republican parties. LOL i thought WTF???

Well, overall (regardless of who owns the masters), this is exciting news. The fact that such a major recording artist is leaving her label speaks volumes about the state of the music business right now.

side note:

Gwen Stefani's tour is sponsored by LiveNation as well.

speaking of Madonna.....

http://i154.photobucket.c...rahgif.gif
[Edited 10/10/07 21:47pm]

Seems 2 be a bad investment.

Graycap23 said:

for who?

Madonna is currently the hottest touring property on the market.

how many other artist sell out tours with an averege ticket price of $200?

ehuffnsd said:

She has it like that? U learn something new everyday. If she came 2 my backyard, I'd leave the house.

Graycap23 said:

Just curious: You like Janet Jackson. Why not Madonna?

Rodya24 said:

Madonna has made about 4 or 5 songs that I like.

Graycap23 said:

REPORTED!!

Rodya24 said:

I love how someone is going to say that she's a bad investment for a company that promotes tours when the only act in the same league as her are the Stones.

The Spice Girls haven't been on tour in 10 years and their most expensive ticket is $120, and Madonna can sell out entire tours for $200 a pop and make 200million in one summer.

ehuffnsd said:

More power 2 her and the company that shelled out the bucks. I'm sure they know what they are doing.

ehuffnsd said:

Exactly.Madonna's tours are always hugely successful.In this decade alone,she's done three tours that have made alot of money:

Drowned World Tour (2001) grossed $75 million.

Re-Invention Tour (2004) grossed $125 million.

Confessions Tour (2006) grossed an astonishing $193 million,making it the most successful tour EVER by a female artist.

As I've said a million times,Madonna is no joke.She knows what she's doing.LiveNation is wise to go into business with her.

LOS ANGELES (Reuters)-Pop star Madonna is close to leaving her long-time Warner Bros. Records label for a wide-ranging $120 million (58.8 million pounds) deal with concert promotion firm Live Nation Inc.,the Wall Street Journal reported on its website Wednesday.

The pact would give Madonna a mix of cash and stock in exchange for the rights to sell 3 studio albums,promote concert tours,sell merchandise and license her name,the paper said.

Madonna,49,has recorded for Warner Music Group her entire career,stretching back to her 1983 self-titled debut album.

A Live Nation spokesman declined comment.Publicists for both Warner Music and Madonna did not immediately reply to requests for comment.

Source: Reuters

ehuffnsd said:

that's an interesting thought.

In the end,though,it seems that this contract is mostly about Madonna's concerts.She knows that's where the real money is.Hardly anyone buys CD anymore.It might be a wise move to align herself with a powerful touring company.Still,I wanna see how well they do with her albums.Can they effectively promote and market her music?

from CNN:

Under terms of the proposed deal,Madonna,49,would receive a signing bonus of about $18 million and a roughly $17 million advance for each of three albums.A portion of the compensation would involve stock.

LiveNation would also have to pay $50 million in cash and stock to promote Madonna's tours.


I predict many other artists will now seek a deal like this.Michael Jackson is probably already on the phone with his managers and lawyers,lol.

This is being reported from the business page in the NY post

The Rich price is also a big risk for Live Nation, Which will have to sell at least 15 million copies of each of the three new Madonna albums in order to recoup investment on that piece of the deal...

Deal sounds good for Madonna ... Bad for Live Nation

From Bob Lefsetz:

This has got more to do with AEG than it does Warner Music. Rapino had to make sure he had the star under his belt, to prevent his rival from scooping her up, because there are very few arena acts left.

That’s the story. Who’s going to fill these buildings in the future?

Major labels aren’t breaking career acts. And radio and MTV could give a fuck. As for the niches, how does one grow them, in a cacophonous world where Radiohead’s music isn’t even going to get played on the radio, and will be forgotten by everybody but fans momentarily.

Not that there isn’t a Warner story here. How the major labels have been so busy protecting their rights that they’ve made music free. They don’t know how to market in this new world, and their economics are positively twentieth century. How many albums can this old broad sell ANYWAY?

Madonna blinked. She went back to the dance floor. The first time ever that she did not move the ball forward, did not give us something we didn’t expect. When the Material Girl starts worrying about her base, her impact on popular culture, you know the times are truly changing.

But people want to see Madonna live. The same way they still want to see "Mouse Trap" on the West End. But she’s better than a fixed play, she’s going to provide an EXTRAVAGANZA! She’ll make you laugh, she’ll shock you, you’ll get your money’s worth in water cooler stories. You’ll be able to relive your youth, and your children will get insight into what the Big 80s were truly about.

But an impact on popular culture? Come on. Unless it’s got to do with adoption or world peace or something. Madonna’s got no cultural impact musically anymore. But her expertise was never music, but BUSINESS! And she’s pulled off a good one here. Getting guranteed income. As for new music…

If Madonna CHOOSES to make new music, she can afford to give it away with concert tickets. And that’s a better plan than selling it via Starbucks. Whoo-hoo, you get a lot of publicity, but no one hears the tunes. Paul McCartney hasn’t even gone platinum. So he made a few bucks… Believe me, future Starbucks deals won’t be so rich in the future. They overpaid Paul to make an impact. And Joni’s record ain’t burning up the chart.

Bottom line, the majors have lost their clout. Their monopoly was always distribution, and they used this to get talent to sign. Eventually they owned EXHIBITION also. So, if you wanted to play, you had to sign with them. The fact that they weren’t hip enough to know this wasn’t going to last forever is astounding, especially since trends come and go so quickly in the music business.

Not that quickly in the past though. Bands used to have first class runs in the neighborhood of a decade. And although their new music may or may not be relevant, this catalog of hits drives people to the gig.

And Madonna had plenty of hits. Hell, if you don’t own "The Immaculate Collection", you’re not a music fan. You want to see her live.

But, young ‘uns who are going to follow her into the buildings? That’s Live Nation’s challenge, to create new hit acts, not skim the cream of the old world. So far, they’ve shown no evidence of breakthroughs in this area. AEG doesn’t even want to play in this area. Who is going to build acts in the future? Not the promoter, not the major label…


http://www.lefsetz.com/wordpress/

I'll be honest, as a madonna fan, im hesitant about this. The numbers are extreme. I understand the logic behind it, but it relies on her keeping up the same work rate until she's 60. Im not saying she's not capable, but as a fan id like to see her slow down abit, and improve the quality of her output rather than the quantity.

More than that i think that Livenation will exploit her name for all they can get. If they're given licence over her image, name, merchandise etc. I cant help but feel it will be a major step down when they start flogging exclusive madonna ring tones etc.

I wouldn't blame madge for signing up, she'll enjoy the challenge of a new label, and the money is ludicrous for the music industry today, however i for one hope she stays with Warners. The fact that this is so highly publicised makes me think she secretly wants to stay with warners, and is hyping this deal so they'll offer her something better.

soemtimes,though...starting over at a new label can breathe new life into a career.It'll be a refreshing new start for Madonna.After being with the same company since 1983,Madonna is finally starting over at a new home.That's gotta feel good,kinda scary too,but exciting.

The devil does his work very well. He will be very pleased with this triumph.

CrozzaUK said:

Why would she want to do that? Madonna figured out years ago that her fans are an undiscriminating bunch musically. They will buy any shit she puts out as long as it is cynically targeted at their soft spots and well marketed. It's the packaging and the overall spectacle that matters with Madonna, not the quality of the music. Have you heard "Hung Up"?

midnightmover said:

U ain't never lied.....co-sign times 10.
[Edited 10/11/07 8:01am]

Her fans said she would never reschedule the album because Kylie, Mariah etc. were not valid competition, and now it "makes sense" the album is being pushed back "because the fall release schedule is too crowded"?

The album is being pushed back because it's not finished yet. And most of what they cut already is probably crap, judging by the leaked tracks.

live nation just emailed me a poll about u2. i'm wondering if they're considering a deal of the same nature.