Jay-Z, the highly successful rapper and entrepreneur is embarking on a landmark music business deal with Live Nation for $150 million dollars. Live Nation is a music concert promoter that has recently signed deals with major music stars Madonna and U2 for a share of concert revenues, digital music sales, and publishing. Jay-Z will receive an advance of $25 million for his own imprint and $10 million dollar advance for each album, which will total three albums under the deal and $25 million for concert performances. In addition, Jay-Z will receive around $20 million for music publishing and licensing rights according to the New York Times. One of the most ground breaking part of this deal is that Jay-Z will receive $25 million earmarked for clothing ventures. It is unclear whether Jay-Z will have ownership of the master recordings as he does for his former music recordings with Def Jam Records. Before Jay-Z can record music for Live Nation, he must complete one more studio album for Def Jam.
This lucrative deal will certainly impact the landscape of the music business as other artists will be carefully studying the blueprint of this deal. One potential marquee name is 50 Cent, who may be looking to secure a mega deal for his G-Unit brand after completing one more studio album for Interscope Records. Certainly, Live Nation, a spin off Clear Channel Communications is seeking to become a major player in the future business model for the music industry and this Jay-Z deal is one step forward to achieving that goal.
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