People’s head spun when Radiohead announced their little experiment in the tip jar release model, and although terms and details of a proper CD release remain to be seen, the past week’s been a parade of major label artists (sort of) following suit: Trent Reznor announced his long expected break with Interscope et al, Oasis and Jamiroquai are rumored to release their next efforts free and online, and today comes news of Madonna’s attempt to drive a nail in the record label’s coffers:
Via Wall Street Journal:
In the latest seismic shift to rock the music industry, pop superstar Madonna is close to leaving Warner Music Group Corp.’s Warner Bros. Records for a $120 million deal with concert-promotion giant Live Nation Inc., according to people familiar with the deal. Madonna still has another studio album left to deliver with Warner Music.The 10-year pact with Live Nation, of Beverly Hills, Calif., would give Madonna a rich mix of cash and stock in exchange for the rights to sell three studio albums, promote concert tours, sell merchandise and license her name.
The fact that a concert promoter like Live Nation is set to land the deal rather than a traditional record label like Warner Music is a sign of how quickly the landscape is shifting in the cratering music industry.
Traditionally, acts like Madonna would release their recordings through a major record label and then make separate deals for touring and merchandising with other companies. Now, however, a range of players in the music business — labels, concert promoters and even managers and ticketing companies — are eager to make broad deals that give them a larger piece of the pie by participating in revenue streams such as endorsement deals between artists and advertisers, as well as the sales of concert tickets and merchandise.
The Journal reports Madonna’s deal specifics: a $17.5M advance, advance payments on the new albums set at $50M and $60M. Also, Live Nation’s anteing up $50M for the right to promote her concert tours. Meanwhile, Madge has managed to retain the industry standard 90/10 split on the concert gate.
As far as marketable major label artists, Madonna’s up there. So you have Madonna on the big-fish side, Radiohead on the innovator side … is this the end of the labels scheme?
Put another way: If she isn’t the straw that’ll break the label’s back, which artist needs to come out and go the non-label route to call it a technical knockout?
One thing’s for sure: It isn’t a fun time to work for a major.
You Might Also Like
 The 10 Biggest Band Beefs Of 2011 |  Quakers – “Fitta Happier” Video (Feat. Guilty Simpson &… |  Hear OK Computer & Kid A 8-Bit Style |  Coachella 2012 Weekend 2 In Photos |
 |
 |
Jesus, has the world gone upside down ? Haven’t heard of an artist being signed to a venue/ticketing entity but hell, why not ?
Good for her for taking steps outside the usual mish-mash.
I was talking to someone about Radiohead’s recent move. I brought up the point that a lot were saying on how it wouldn’t work for smaller bands trying to make it. She stated however that if the standard were to be changed, more honest and truly worthwhile music would prevail, while the rest would decay away like a 10-Couric Turd. Let’s hope.
Chris, that would only be the case if you ignored the fact that people who make poor musical choices also have the capability of making poor monetary choices. I’ll make an assumption as well that most of the people who frequent boards such as these make less money than the typical Top 40 listener.
A couple years ago Korn and (I think) my Chemical Romance signed a deal with their record label that gave them a cut of the artists’ tour revenues. This deal seems to be no better or worse, though I may actually pity Live Nation for signing a deal with an artist who’s only strength is that she can overcharge tickets essentially to provide music for nostalgia’s sake.
id just like to say that harvey danger did this over a year ago and had alot more to lose. but you know, because its “radiohead” they get the notoriety, i get it.
I predict – and you can quote me on this, if anyone cares – that within five years, the RIAA will be on the brink of extinction, if not actually extinct. DRM has been crumbling, major artists are abandoning them… it’s only a matter of time. Let’s make sure we do our part, though.
U2 is probably the mainstream/pop-rock version, so to speak, of Radiohead. If they jump ship, then the coffin will be officially sealed.
“If she isn’t the straw that’ll break the label’s back, which artist needs to come out and go the non-label route to call it a technical knockout?”
My answer would be: some super tiny band you’ve never heard of. You can say Clap Your Hands Say Yeah did that, but does a Pitchfork Best New Music do that for unsigned bands now? Not as much, because the novelty has worn off. Pitchfork obviously isn’t the only game in town, and I’m sure there will be other one-off success stories, but on the whole new bands will still need help from people with experience and connections. And they’ll need a whole team of them as their careers grow and there’s more day-to-day stuff to manage. Good record labels can perform those functions and more for a band. So can management groups and really big concert promoters, but the more they take on the more it becomes a game of semantics to NOT call them record labels. Live Nation being a good example. I guess what I’m trying to say is: label-likes entities will continue to be useful for bands going forward.
Doesn’t Madonna part own Maverick Records? Some message to send. “I won’t sign with a major, but hey Indie band, why don’t you sign with Maverick.”
She is and always has been a whore for the public eye. If we stopped ignoring her she may go away.
Making a “statement” against major label, while owning one is like the owner of a Tobbacco company telling us smoking is bad.
Please go away.
she sold her share to warner bros in august of this year
Regardless of that she has always done whatever it takes to be in the public eye and I really don’t think she has a thought in her head that isn’t drawn out to further her carrer. I have never really beleived any of her “convictions.”
And what’s with this crap about Radiohead not being mainstream??? A band that can sellout any arena in seconds, I would generally say is in the public and would have to be considered “mainstream”
U2 would be a huge blow to major labels, but don’t think that Radiohead didn’t make nearly as big as of impression.
The whole issue with what sells, what doesn’t and what is viable art worth money is beset by the fact that Nickelback’s “All The Right Reasons” is set to be the biggest selling album of the year.
DwD
Leighann, you’re not the first to complain about Radiohead earning all this street cred for making such an “innovative” move when bands have been doing this for years.
The Brian Jonestown Massacre has been releasing every album for free on their website for years. Their entire discography is available there, along with bootlegs, videos, etc.
They’re a fantastic band, but I agree that they don’t deserve the “innovators” tag. What makes this great is that they’re one of the first MAJOR label artists to do so. People are hoping this will cause a shift in the industry, more than they’re worshipping Radiohead for putting out a free album.
I’m just glad this all has people thinking and talking, pretty exciting times!
“If she isn’t the straw that’ll break the label’s back, which artist needs to come out and go the non-label route to call it a technical knockout?”
Maybe Kanye West, or if Michael Jackson ditched Sony, or if Jay-Z… wait, nevermind, think he still owns Def Jam. Or that one other band from Dublin whose frontman is the former record for biggest piece of shit (about 80-Courics). I think they were already mentioned.
Wow, Live Nation, representing all that is virtuous and right in the music industry, what an improvement. Sticking it the the establishment all right.
Kyle, your reading comprehension could use a good bit of work.
DO NOT BE FOOLED!!!
This is a brazen attempt by Live Nation to follow in the footsteps of their evil stepmother, Clear Channel. I left House of Blues Concerts when Live Nation bought us out because I knew EXACTLY what this corporate monolith was going to do. And away they go.
Control ticketing, control the venues, control the artists, and, now, control EVERY ASPECT OF THE MUSIC BUSINESS!
Monopoly, my friends. That’s what Live Nation wants.