Jay-Z & The ‘Nation’ Doin’ the Damn Thing

Are you ready for the music industry revolution? Jay-Z and LiveNation are ready to bring it to you with the announcement of what is being billed as the largest music contract ever awarded at $150 Million. But that is only half the story. The other half is that they are formulating a new distribution and business model that includes getting a share of his live performances as well.

The announcement does not go into details about any of the new distribution models but does infer that it positions Jay-Z and LiveNation to be in a strong position to take advantage of the current and emerging ways consumers will access and consume music.

There are several reports which indicate Jay-Z will get a $25 Million dollar advance, but still owes Def Jam one more album. HOVA is getting P.A.I.D. Madonna, and U2 also recently struck deals with LiveNation, but none as comprehensive as this one. Did Jay give up too much? Besides the comprehensive nature of the deal structure will there in fact be new digital distribution models that will emerge? Many have been tried and tested but I am betting on this one to set it off.

Live Nation’s principal business has revolved around staging tours and performances for major rock and country tours, but not will dip it’s big foot into the Hip-Hop/Rap genre.

Source:
NY Times