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
About the Author Kevin McFall, is a media executive, with deep expertise and knowledge of digital product management and business development. Currently serving as President of Red Clay Digital, a consultancy providing guidance to company’s seeking to leverage online, mobile and other digital platforms for partnerships, customer acquisition and engagement. Prior to his current role, Kevin was co-founder and Vice President of Products & Content for RushmoreDrive.com a division of IAC. Prior to joining IAC, Kevin led digital product & affiliate programs for Zap2it.com TV & Movie guidance service (Tribune Company) as the Director of Products & Partnerships. His career has also positively impacted the American Bar Association, Sara Lee & Digital Equipment Corporations.
Kevin is the immediate past president of the University of Illinois at Urbana’s Black Alumni Network, and is a lifetime member of the Alumni Association. Kevin currently serves on the Urbana Campus Alumni Advisory Board & on the board of the Inner City Computer Stars (icstars.org) Foundation. Kevin is an active member of Kappa Alpha Psi Fraternity & several other national professional associations including the Minority Media Executives, Black MBAs, & NAMIC.
Kevin earned an MBA from the Sperling School of Business at the University of Phoenix, and a B.S. in Computer Science & Mathematics, from the University of Illinois at Champaign.
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