Madonna Abandons Warner Music
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LOS ANGELES — Madonna’s landmark deal with concert promoter Live Nation Inc. marks the latest move by the music industry to find new ways to profit from artists as CD sales slip and the Internet changes the way music is delivered. The deal officially announced yesterday in a joint statement by Live Nation and the Material Girl gives the company an all-encompassing stake in her music.
Financial terms were not disclosed. But the 10-year deal is worth about $120 million, a person who spoke on condition of anonymity because of the confidential nature of the matter previously told the Associated Press.
For Live Nation, the signing of Madonna was part of a push to forge similar deals with a range of artists, from superstars to emerging talent, under its new Artist Nation division.
“Madonna is the first step to making Live Nation into the next-generation music company,” Live Nation’s CEO, Michael Rapino, said during an investor conference call. “We believe it should help attract additional artists.”
The strategy has been adopted by other recording companies. Britain’s EMI Group PLC signed a similar all-encompassing rights deal with Robbie Williams in 2002.
