Will Madonna leave Warner for a new £60 million recording deal?
QUEEN OF POP Madonna is reportedly all set to leave Warner Music for a £60 million deal with Live Nation, the concert promoter behind the Live 8 events.
The 10-year deal would see Live Nation not only selling her recordings and mounting her lucrative tours, but also handling her merchandising, corporate sponsorship deals and the licensing of her name and image.
The popstar’s management informed Warner she would be leaving because the label could not match the offer made by Live Nation, one source told the LA Times.
Under terms of the proposed deal, Madonna, 49, would receive a signing bonus of about £9 million and an estimated £8.5 million advance for each three albums, the source said.
Madonna has been with Warner since 1983, when the company handled her first UK number one hit, Into the Groove. The singer is contracted to deliver one more studio album and a greatest hits package to the label.
The agreement would be in line with similar deals other artists have struck with labels in recent years that give record companies a stake in their artists beyond the sale of recordings.
Madonna is named in the Guinness World Records as the most successful female artist of all time – her 2006 tour racked up ticket sales of $86 million in North America alone – but recent albums have not been as successful.
Live Nation, however, has been pushing to broaden its business reach, and with this sort of deal it could send a signal that it has a 21st century model for how the business of music could be handled after the advent of the digital revolution over the last decade.