Madonna confirms ground-breaking record deal

-File photo

Pop diva Madonna announced a ground-breaking record deal with concert promoters Live Nation on Tuesday, reported to be worth 120 million dollars over 10 years.
In what analysts have described as a landmark commercial agreement that could be the shape of things to come for the music industry, Madonna will become Live Nation’s founding star in its Artist Nation division.
Reports have said the deal will see Madonna cement her status as the world’s highest paid female singer, giving her a lucrative mix of cash and stock, the report said.
In return, Live Nation will be granted the rights to three studio albums as well as the right to promote concert tours, sell merchandise and license Madonna’s name, the Wall Street Journal reported last week.
The financial terms and duration of the deal were not released in a statement issued by Live Nation chief executive Michael Rapino on Tuesday.
“The paradigm in the music business has shifted and as an artist and a business woman, I have to move with that shift,” Madonna said in the statement.
“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. “Who knows how my albums will be distributed in the future? That’s what’s exciting about this deal — everything is possible.”
Analysts say traditional record labels are keen to sign artists on similar deals as the music world adjusts to the new realities of the digital download revolution, which has led to plunging CD sales.
It said that in the past, headline acts like Madonna would release new work through a major label before brokering separate deals for touring and merchandising with specialist companies.
Increasingly however, music industry players are seeking to secure wide-ranging deals that allow them to tap into multiple revenue streams, such as endorsements, concert ticketing and merchandising.

Copyright AFP (Agence France-Presse), 2007