Thursday, April 3, 2008
As this blog has previously reported, the music industry is being forced to move away from its reliance on a revenue stream coming from the sale of
records LPs CDs well, let's just say the music industry is moving away from reliance on a revenue stream coming from the sale of music. What then will the future of the industry look like? (Look to the left for a sneak peek.)
Today's New York Times reports that Rapper "Jay-Z plans to depart his longtime record label, Def Jam, for a roughly $150 million package with the concert giant Live Nation that includes financing for his own entertainment venture, in addition to recordings and tours for the next decade."
The Times provides the following details of the arrangement:
The overall package for Jay-Z also includes an upfront payment of $25 million, a general advance of $25 million that includes fees for his current tour, and advance payment of $10 million an album for a minimum of three albums during the deal’s 10-year term, these people said. A series of other payments adding up to about $20 million is included in exchange for certain publishing, licensing and other rights.
Given his earlier forays into clothing and nighclubs, Jay-Z is just the man to move the music industry beyond music. But Live Nation also includes in its stable other pioneers of the music industry, such as Madonna and U-2, who recognized long ago that a multi-faceted resume is what separates them from, say, the Bay City Rollers.