Madonna into the groove with ground-breaking record deal
Alex Veiga

LOS ANGELES—Pop diva Madonna announced a ground-breaking record deal worth a reported 120 million dollars over 10 years on Tuesday, that analysts say could revolutionize the music industry.
A statement released by Beverly Hill-based concert promoters Live Nation said Madonna would become the company’s founding star in its new Artist Nation division as part of the unprecedented agreement.
The deal is expected to see the 49-year-old pop culture icon cement her status as the world’s highest paid female singer, giving her a lucrative mix of cash and stock, reports have 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 unprecedented, all-encompassing nature of the agreement is the first of its kind involving a major artist, analysts say.
Traditional record labels are keen to sign stars on similar deals as the music industry adjusts to the new realities of the digital download revolution, which has led to plunging CD sales.
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.
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.”
Rapino described the deal as a “a defining moment in music history.”
“I am thrilled that Madonna, who is also now a shareholder in our company, has joined with us to create a new business model for our industry.”
The statement said the deal covered all of Madonna’s future music and music-related businesses, including the exploitation of the Madonna brand new albums, touring, merchandising, fan club/web site, DVDs, music-related television and film projects and sponsorship agreements.