Rolling Stones to sign with LiveNation?

The rockers are believed to have left EMI for good

Jun 15, 2008

The Rolling Stones are believed to be leaving record label EMI and signing with concert promotion giants LiveNation.

The band, whose contract with the troubled record label expired in February this year, have already released their live 'Shine A Light' album through a one-record deal with Universal.

The Observer report that the group are on the verge of signing the deal with LiveNation, allowing them to take over the marketing of the group's back catalogue, worth over £3m a year.

The group will likely also take over control of touring and merchandising rights.

EMI has seen stalwarts, including Radiohead and Paul McCartney, leave recently, while Madonna, Jay-Z and U2 have all signed deals with LiveNation.

http://www.nme.com/news/the-rolling-stones/37385

dudes are bold...

I can see them signing a deal but it no doubt will be based on what if anything they actually deliver besides the post Klein catalog.As much publicity and spin for Live Nation as it is about generating tons of new revenue I d think.Then again if there were no thoughts whatsoever about touring thne why bother going through the process I suppose?

maybe some unreleased songs and concert dvd's?

from The Observer

The Rolling Stones are on the verge of ending their 31-year (* ) relationship with EMI, dealing a blow to private equity owner Terra Firma, led by Guy Hands, which acquired the label in a £3.2bn deal last summer.

Sources say the group is close to clinching a deal with Live Nation, the world's largest concert promotion firm, which would market its back catalogue, depriving EMI of around £3m a year. Live Nation, which last year poached Madonna from Warner, would also take highly profitable merchandising and touring rights for future Stones shows, some of which have grossed as much as £750m.

Details of the new deal could be announced in the next fortnight. It is understood that Universal will have a role, with Live Nation licensing new versions of the catalogue to the American label, which would sell them online and as CDs.

-Richard Wachman





(*) - 31 years? Eh?

Rolling Stones deny reports of plans to quit label

Monday, 16 Jun 2008 15:17
Rolling Stones dismiss media reports that they plan to leave EMI

The Rolling Stones have dismissed media reports that they plan to end their business relationship with EMI.

The Observer newspaper had claimed at the weekend that the veteran rockers are close to leaving EMI for concert promoters Live Nation, who recently signed deals with Madonna and Jay-Z.

However, the band's spokesman Bernard Doherty has denied plans to sever ties with EMI after 31 years.

"We are not in talks with Live Nation in connection with any record deal," he said in a statement to the Reuters news agency.

The Observer had said on Sunday that the Stones were "close to clinching a deal with Live Nation" which would see the promotion firm taking control of the band's back catalogue, worth some £3 million annually to EMI.

The report also added that Live Nation would be given control of the band's merchandising and touring rights, which could be worth around £750 million.

Having lost Radiohead and Sir Paul McCartney in 2007, losing the Rolling Stones would see EMI's fortunes turning further for the worse, a path which has seemed difficult to avoid since the label was taken over by private equity firm Terra Firma.

Some 2,000 EMI employees lost their jobs in January and only the sterling performance of Coldplay's new album Viva La Vida or Death And All His Friends - which topped the charts on Sunday after only three days on release, having sold more than 300,000 copies - has steered the label in the right direction.

With U2, Madonna and Jay-Z having all signed deals with Live Nation in the past 12 months, the acquisition of the Stones would not be surprising, given the nature of the promoter's agreement with Madonna, for example.

The deal signed in October is the first to encompass all facets of the star's career, with Live Nation holding the rights to her albums, tours, merchandise, website, DVDs, sponsorship, TV shows and films.

http://www.inthenews.co.uk/entertainment/music/rolling-stones-deny-reports-plans-quit-label-$1227549.htm

Stones deny label move from EMI

LONDON (Reuters) - The Rolling Stones have played down a weekend report that the band planned to ditch long-term record company EMI to join concert promoter Live Nation.

But industry experts still believe the British group could soon part ways with the label, which was taken private in 2007 and has struggled to keep some of its biggest artists.

"We are not in talks with Live Nation in connection with any record deal," London-based Rolling Stones spokesman Bernard Doherty said on Monday, reading from a brief statement.

EMI was not immediately available for comment.

The Observer weekly newspaper reported on Sunday that the Stones were on the verge of ending their relationship of more than 30 years with EMI and were "close to clinching a deal with Live Nation". It quoted unspecified "sources".

The report also said the band, a hugely successful touring act estimated to have sold over 200 million albums worldwide, would allow Live Nation to market its back catalogue, depriving EMI of about three million pounds ($5.9 million) a year.

Live Nation Inc already has deals with Madonna and Jay-Z, reportedly worth $120 million and $150 million respectively, as artists look beyond traditional recording deals to tap into increasingly lucrative touring and merchandising revenues.

Profits from music sales have been badly dented by online piracy, and record companies are struggling to come up with answers to declining demand for physical CDs.

EMI lost two of its biggest acts in 2007 -- Paul McCartney and Radiohead. The former Beatle struck a deal with coffee retailer Starbucks while Radiohead offered their album "In Rainbows" online in a "pay-what-you-want" scheme.

http://uk.reuters.com/resources/r/?m=02&d=20080616&t=2&i=4779798&w=&r=2008-06-16T124144Z_01_L16107194_RTRUKOP_0_PICTURE0

EMI could lose the Rolling Stones too.

"It is probably safe to assume that the band will be walking away," said one source familiar with the situation who asked not to be named.

The fact that the Rolling Stones released the soundtrack to Martin Scorsese's documentary "Shine a Light" through rival label Universal this year in a one-album deal should have been "seen as a sign" that the end was nigh, the source added.

EMI was taken over last year by private equity firm Terra Firma, which has been unpopular with some of the acts signed to the label. It announced up to 2,000 job cuts in January.

It has not all been bad news for the label's new owners, however.

Coldplay's latest album "Viva La Vida or Death And All His Friends" sold 302,000 copies in Britain in the first three days, taking it to the top of British album chart on Sunday.

It is on track to beat the band's 2005 hit record "X&Y", which sold 465,000 copies in Britain in its first week. The new album goes on sale in the key U.S. market this week.

(Reporting by Mike Collett-White, editing by Paul Casciato)

- REUTERS

Sounds like old King Cohl is doing some shit-stirring.

God, Coldplay sold more records in three days than all the Stones releases since 1997 combined (except 40 Licks)

Soldatti wrote on Jun 16^th, 2008 at 6:51pm:

God, Coldplay sold more records in three days than all the Stones releases since 1997 combined (except 40 Licks)

thats only two albums which sold reasonably well (think ABB is at like 2/3m atm) and a couple compilations - so its nt that hard to believe

the band have now released a statement denying they've had any contact with Live Nation

The Rolling Stones 'not signing to Madonna and Jay-Z's label'

Band say they have had no contact with Live Nation

   
The Rolling Stones, whose contract with record label EMI expired in February this year, have denied that they are set to sign a multi-million pound record deal with concert promoter Live Nation.

Rumours that The Rolling Stones were set to sign with Live Nation – with whom the likes of Madonna and Jay-Z have lucrative contracts – were circulating on Sunday (June 15).

However, the band have since issued a statement denying they have had any contact with the company.

The statement read: "We are not in talks with Live Nation in connection with any record deal".

http://www.nme.com/news/the-rolling-stones/37427

" Sounds like old King Cohl is doing some shit-stirring "


TELL Me About it !!!!!!


*** ABRUPT END TO TRANSMISSION !!!!! ***

Negotiating ploy, on the face of it.

From the Wall Street Journal today edition :

http://online.wsj.com/article/SB121391049336289893.html?mod=hpp_us_whats_news

Live Nation Battle Is Likely to Result In Chairman's Exit
By ETHAN SMITH
June 20, 2008

An internal feud over strategy could soon be resolved at Live Nation Inc. The world's largest concert promoter is negotiating the exit of Chairman Michael Cohl, say people close to the situation.

Mr. Cohl and Chief Executive Michael Rapino have battled for weeks over novel contracts known as "360 deals," under which the company agrees to give superstar performers rich upfront payments in exchange for financial participation in virtually all their business, from recorded-music sales to image licensing. Live Nation has done such deals with artists like Madonna and Jay-Z, who have been promised $120 million and $150 million, respectively.

Mr. Cohl wants to accelerate the pace of the deal-making, while Mr. Rapino wants to slow it down.

After watching the feud escalate last week, the company's board directed Mr. Cohl and the company's management to work out their differences quickly. That resolution appears likely to include an agreement as soon as next week on Mr. Cohl's departure, these people said.

Crucial terms have yet to be resolved, such as the size any financial settlement, or whether Live Nation would invoke a clause in Mr. Cohl's contract banning him for several years from competing with the company.

Neither Mr. Cohl nor Mr. Rapino could be reached for comment.

As founder, in 1973, of Toronto-based Concert Productions International Inc., Mr. Cohl has helped shape the financial landscape of the modern concert business, enlisting corporate sponsors to underwrite production costs and helping usher in the era of the $500 concert ticket.

Mr. Cohl joined Live Nation last year, becoming its chairman and largest individual shareholder, after Live Nation bought his company for $123 million in stock and $10 million cash.

When tensions with Mr. Rapino first surfaced, say people familiar with the matter, Mr. Cohl initially tried to buy his company back from Live Nation. But the parties couldn't agree on a price.

In November, Mr. Cohl defended the rich valuations of the 360 deals to investors by saying $17.5 million per album for Madonna might sound excessive, but he said it wasn't when factoring in the payout from touring or merchandise sales.

He said Live Nation expected to gross $1 billion from Madonna-related business during the 10-year contract. However, since the deal was unveiled in October, Live Nation's stock has fallen 44%.

Jeep wrote on Jun 20^th, 2008 at 9:28am:

From the Wall Street Journal today edition : http://online.wsj.com/article/SB121391049336289893.html?mod=hpp_us_whats_news Live Nation Battle Is Likely to Result In Chairman's Exit By ETHAN SMITH June 20, 2008 An internal feud over strategy could soon be resolved at Live Nation Inc. The world's largest concert promoter is negotiating the exit of Chairman Michael Cohl, say people close to the situation.

the ins and outs of all this is over my head, but any business deal that sees Cohl being ousted cant really be that bad or fan-unfriendly!

Maybe he will attempt to start a new company with the Stones as the flagship band, using other people's money of course. I am with Rapino here, the concert industry is in serious decline and the bottom may be about to drop out. No use spending upwards of a billion dollars securing these contracts without seeing how profitible they will ultimately be.

With the price of gas going sky-high this summer, I can't see a tour in the works for any major talent like the Stones.  Rumblings are McCcartney will tour later in the year, but fuel for the tour trucks will run through a great deal of money.

Steel Wheels wrote on Jun 20^th, 2008 at 2:22pm:

With the price of gas going sky-high this summer, I can't see a tour in the works for any major talent like the Stones.  Rumblings are McCcartney will tour later in the year, but fuel for the tour trucks will run through a great deal of money.

http://www.oregonlive.com/music/index.ssf/2008/06/bands_on_the_run_from_high_gas.html

Whither Jake?

I've said it before about fuel costs, and no one declared me a God! Make no mistake, we are all heading into uncharted territory vis a vis the music industry. Cd sales are crashing. Legal downloads are helping, but not picking up the slack. Ring tone sales are fine for new acts, but mean jack shit to dinosaurs like the Stones. And fuel is going to kill the viability of large tours.

And amid all this talk is not one word of perhaps, maybe, if, please, Allah bless us, "sources say" or fingers crossed that the Stones are even remotely close to enter the studio to spend muco peso's on a new album that will sell diddly squat!

Another odd thing is the 200 mill album sales of the band. It's only a guess-timate. What? No one knows?

And 3 million pounds a year of back catalogue is dreadful! Thats a pitiful figure. Wonder what the Beatles back catalogue is? Or Floyd? Or Ac/dc? Abba? Or even one off's like Bat out of Hell?

The only real money is touring. And they are old. And they wont change the set lists. And the most profitable tour market is down and out. Floods, fire, famine, sub-prime, unemployment, pestilence - It's all happening in the U.S. of A. Who can afford $666 tickets? Yes, i said $666!

And the fuel! Wont some one think of the fuel! Even China is going to massively increase it's fuel charges from July 1. So much so, some fear it could spark a mini-recession there.

I think they should pack it in and live life well in their dotage.

P.S. This Coldplay thing has me stumped. They are sooooooooooooooooooooooooo lame!

So Cohl "who helped usher in the $500 concert ticket" is being forced out. Best of all this prick lost $54million on his stock dropping 44%.Looks good on him.I've been paying through the nose since his early Toronto days with CPI and have no use for him.He now has sold U2 to Live Nation and that leaves him with only one card left in the deck of course being The Stones.I hope he does have a non compete clause which will ensure he isnt "ushering in the era of $1000 Stones tickets" (fuck who am I kidding we're already there)

I've paid a thou twice: HRC in Vegas (it was my birthday!) & Radio City, which went to charity.

AEG Report Slow Sales For George Michael, Sheryl Crow, STP
6/13/08

SAN DIEGO -- George Michael recently announced that his touring days are coming to an end and a recent article in the San Diego Weekly Reader may shine some light on why. According to the Reader, tickets for Michael's upcoming June 17 gig at the Sports Arena are not moving as well as might be expected, leading some observers to speculate that it may be a lean summer for promoters.
The Reader is reporting that out of 15,000 tix for the event, only about 4,000 have sold so far, just over 25%.

"AEG is hurting with George Michael," an apparently well-informed insider told the Reader "Michael is kicking off his first U.S. tour in 18 years at the Sports Arena, and they have only sold 4000 tickets.

And its not just Michael, Sheryl Crow and the Stone Temple Pilots are also selling below the hoped-for numbers. Local promoters told the paper that sales appear to be off overall by as much as 20%.

"You always hear about the high cost of tickets with extra Ticketmaster charges and everything and that eventually the promoters will respond and bring tickets back down to earth. I think the promoters will get burned so badly this year that this will finally be the year they wake up and start bringing prices down for next year." the unnamed promoter told The Reader.

Not everyone is quite as sure. Some suspect that people are waiting until the last minute to buy tickets.

"I would say that advance ticket sales are down 30 percent, but day-of-show sales are actually up. By waiting to buy tickets on the day of show, people are avoiding Ticketmaster altogether." another local promoter told the paper.

ijwthstd wrote on Jun 21^st, 2008 at 4:13pm:

AEG Report Slow Sales For George Michael, Sheryl Crow, STP 6/13/08 SAN DIEGO -- George Michael recently announced that his touring days are coming to an end and a recent article in the San Diego Weekly Reader may shine some light on why. According to the Reader, tickets for Michael's upcoming June 17 gig at the Sports Arena are not moving as well as might be expected, leading some observers to speculate that it may be a lean summer for promoters. The Reader is reporting that out of 15,000 tix for the event, only about 4,000 have sold so far, just over 25%. "AEG is hurting with George Michael," an apparently well-informed insider told the Reader "Michael is kicking off his first U.S. tour in 18 years at the Sports Arena, and they have only sold 4000 tickets. And its not just Michael, Sheryl Crow and the Stone Temple Pilots are also selling below the hoped-for numbers. Local promoters told the paper that sales appear to be off overall by as much as 20%. "You always hear about the high cost of tickets with extra Ticketmaster charges and everything and that eventually the promoters will respond and bring tickets back down to earth. I think the promoters will get burned so badly this year that this will finally be the year they wake up and start bringing prices down for next year." the unnamed promoter told The Reader. Not everyone is quite as sure. Some suspect that people are waiting until the last minute to buy tickets. "I would say that advance ticket sales are down 30 percent, but day-of-show sales are actually up. By waiting to buy tickets on the day of show, people are avoiding Ticketmaster altogether." another local promoter told the paper.

Well George Michael just played in san Jose to a sold out crowd of 18,000. So their are still some fans left.

a change might do them good and hopefully they'll come out with something a tad better than their last effort.  i am still digging on bigger bang but, usually i like to hear more than 4 good songs from a 15-17 [whatever it was] cd.

Are you ok?  There's not a bad song on ABB

Steel Wheels wrote on Jun 20^th, 2008 at 2:22pm:

With the price of gas going sky-high this summer, I can't see a tour in the works for any major talent like the Stones.  Rumblings are McCcartney will tour later in the year, but fuel for the tour trucks will run through a great deal of money.

___________________________________________


The cost of gas for the tour trucks themselves will not financially affect any major tour at all. It is just a super small drop in the bucket for a tour with loads and loads of expenses from a major act such as The Stones or Mcartney.

The over-all economy and price of everything eles, including gas to the concert goer is what would hurt those tours because times are tough and less and less people will be willing to spend on the all-mighty concert ticket. Folks are more budgeted now and will go and do things like going to the movies, or renting movies and ordering pizza, versus paying $100.00-$200.00 per seat for a concert...

That is why the tours could suffer. Folks will be less likely to spend on tickets.


Ian

My disposable income has been disposed.......

I just want to see my Band one more time.
I can't say goodbye yet.

I can't.

Whatever it takes, I will get to a show.

LJ.

I'd like to see three shows for sure as it'll take me up to a half century of Stones gigs.

I saw 13 on each of the last two tours.  Those days are over, unfortunately.

"   Rumblings are McCcartney will tour later in the year, but fuel for the tour trucks will run through a great deal of money.  "


You Bet Your Sweet Bippy !!!!!



www.MACCAREPORT.com



" Best MACCA Yet  , Ronnie ! "


Baby Joe ! ™

LadyJane wrote on Jun 22^nd, 2008 at 9:09am:

I just want to see my Band one more time. I can't say goodbye yet. I can't. Whatever it takes, I will get to a show. LJ.

If we do one of those big Chicago things & work doesn't interfere, I will be there. I wanna do LA & of course, anywhere in NY except Jints Stadium. And I think I'm scheduled to go to Europe with GTRM...

Gazza wrote on Jun 22^nd, 2008 at 5:50pm:

I'd like to see three shows for sure as it'll take me up to a half century of Stones gigs. I saw 13 on each of the last two tours.  Those days are over, unfortunately.

I saw 2 shows before 1997. Since then I've seen 36 or so. When I told someone that I'm going to London next month, they dourly asked me, "Oh, are the Stones on tour again?"

Exclusive: Cohl, Rapino Talk Live Nation Plans
June 23, 2008 , 12:15 PM ET

Ray Waddell, Nashville

It's official: Michael Cohl has resigned as chairman of the board of Live Nation, and also vacates his post as CEO of Live Nation Artists, effective immediately. Negotiations for Cohl's resignation were finalized Friday (June 20); he will serve as a consultant to the company.

News that Cohl's exit from Live Nation was imminent was first tipped on Billboard.biz last week, and has been the source of rampant speculation in the industry. In an exclusive conference call with Billboard, Cohl and Live Nation CEO Michael Rapino outlined Cohl's exit and downplayed media reports of rancor between the two.

"One of the strengths of Michael Cohl is he's a big thinker, strategic, great with relationships, artists and big deals," Rapino says. "That's what we want him to do, we don't actually want him to get caught up in the day-to-day of running of our division and all the bureaucracy around the operational part. We want him to go out and do what he does best for us and that's what we're back to doing."

Former Live Nation chairman of the board Randall Mays will eventually reassume that position; Live Nation chairman of global music/CEO of global touring Arthur Fogel will run LNA. Cohl's consultant deal runs through 2012, and he has a non-compete clause that runs through 2016.

Asked what precipitated the move, Cohl says, "Just the moon and the stars," admitting that perhaps he took on too many duties in the dual position of running LNA and chairing Live Nation. "I've been giving people grief and making things difficult, and it was really all about I wasn't doing what I'm really good at," he says. "From my perspective it's much more about that than any of this nitty-gritty detail that anybody wants to talk about that's not relevant."

As CEO of Live Nation Artists, Cohl headed the division of the company that orchestrated the much-publicized deals with such artists as Madonna, Jay-Z, and U2. These Madonna and Jay-Z deals alone have been valued at $120 million and $150 million, respectively. Speculation has been that how Live Nation will pursue these 360 deals going forward was the root of the tension in the Live Nation board room. As CEO of Live Nation Artists, Cohl reported to Rapino.

Rapino stops short of saying there were any philosophical differences between he and Cohl regarding LNA. "We believe being in long-term, deeper relationships with artists is a great strategy, we will be 100% pursuing it," Rapino says. "There has never been a debate with Michael Cohl as to whether we should be in the Madonna business or be in long-term relationships, or be in more rights with artists."

That said, it does seem clear that Rapino and LNA will not be overly aggressive in nailing down new 360 deals. Rapino says the plan was always to sign four artists the first year. "We are close to the signing of another superstar, we're in discussions with a couple of others," he says. "Maybe we get to four in 2008 as was the plan, or maybe we get to five or six. We're happy to be in the business and we will continue to be in the 360 business."

The mood on the call was jovial, contradicting reports that the two were at major odds. "We didn't comment for a reason," on that talk, Rapino says. "We come from Canada, we always talk about how we might have some fights in the dressing room but when we go out on the ice, we're united. Michael and I have had fights since the day I met him ... and he's always challenged me to make bigger and better decisions. We don't always agree, but that was never relevant to whether we would be having dinner together for the rest of our lives and having great respect and working together."

Cohl served as chairman of the company since February, and prior to that was vice chairman since 2006. He remains one of the company's largest shareholders, though not the largest. "I've got a big whack of stock, let's put it that way," Cohl says. "I think the stock has incredible upside. I'm not selling my stock."

Cohl, known for pioneering a global touring model that taps into numerous revenue streams, has promoted every Rolling Stones tour since 1989, including A Bigger Bang in 2005-2007, the top grossing tour of all time at $558 million. Both Cohl and Rapino indicate that Cohl will produce more tours with Live Nation, possibly one next year.

In terms of this summer's touring business, Rapino says, "The world is assuming my business is going to have a tough summer because of gas prices, etc., and I can say to you we have one of the strongest summer lineups we've had in a longtime. We have most of our shows on sale and some already executed, we have not experienced one ounce of soft sales or on-site ancillary sales effecting our business. We're very optimistic that we're still completely on plan and will have a very good summer."

Find this article at:
http://www.billboard.com/bbcom/news/article_display.jsp?vnu_content_id=1003819679

Joey wrote on Jun 23^rd, 2008 at 9:29am:

"   Rumblings are McCcartney will tour later in the year, but fuel for the tour trucks will run through a great deal of money.  " You Bet Your Sweet Bippy !!!!! www.MACCAREPORT.com " Best MACCA Yet  , Ronnie ! " Baby Joe ! ™

Macca can run his tour trucks off his own hot air.If its a major tour he can bring  Phil Collins along for extra hot air.

He'll just sell some more x-pensive tickets to the rich folks

"Will the people in the cheaper seats clap your hands? And the rest of you, if you'll just rattle your jewelry. "

June 30, 2008

Live Nation to stick with star strategy and exclusive tour deals

Adam Sherwin, Media Correspondent

A split at the top of Live Nation, the leader in global concert tours, will not affect the company's strategy of offering exclusive deals worth up to $150 million (£75.2 million) to star names, a leading executive in the company said.

Michael Cohl, Live Nation chairman, resigned this month after a disagreement over the music giant's strategy of luring artists including Madonna, U2 and Jay-Z with so-called 360 deals that encompass recording, touring and merchandising.

Live Nation shares have declined 19 per cent this year amid concerns that the company, which has made a loss for three years, is handing too much cash upfront to a group of wealthy and ageing artists. Mr Cohl, who turned the Rolling Stones into a $1billion touring business, wanted to snap up more top-level stars, such as Shakira, but Michael Rapino, Live Nation chief executive, favoured a more conservative approach. Arthur Fogel, head of global touring, who has taken over Live Nation Artists from Mr Cohl, told The Times: “Michael [Cohl] remains as a consultant and major shareholder. We absolutely remain committed to our strategy.”

Mr Fogel brokered the ten-year, $120 million Madonna deal, which ended the star's association with Warner Music. He produced her three most recent world tours, which grossed almost $400 million. Ticket sales for her 42-date Sticky & Sweet tour, the first under the new deal, which begins in Cardiff in August, stand at 90 per cent, with one million sold.


Mr Fogel said: “We are pretty good at doing deals which work for the artists and ourselves. This time Madonna is getting to a lot of countries and cities she hasn't visited for 15 years and people are going to see a ground-breaking production.”

Madonna will receive about $120 million in cash and stock over ten years from the company. Live Nation expects to recoup about $50 million from ticket sales, merchandising and sponsorship over a cycle of three tours, plus a possible $20 million from a stake in Madonna's fashion businesses. However, expectations that the company could earn $80 million from new albums may be far too high, given the declining recorded-music market. And the deal assumes that the star will maintain the same intensive level of touring until she is 60 years old.

Mr Fogel said that it made financial sense to lock Madonna into a long-term deal because of her “unique position and stature as an artist. She is the ‘chairman of the board' but always at the cutting edge. Her audience demographic are also likely to spend more on merchandise at shows.”

Wall Street was less impressed with the $150 million deal handed to Jay-Z. Live Nation will finance the hip-hop mogul's next business investments and recording costs, but his long-term attraction as a live artist is unclear.

Mr Fogel said: “Jay-Z is an exceptional businessman and an artist with great instincts. He will also help bring us younger artists to develop. We need to create the next generation of Madonnas and U2s.” An $80 million, 12-year deal with U2, which excludes recorded music, met with approval because of the veteran band's consistent renewal of its live show and audience.

Live Nation, worth $900 million, will develop its own ticketing infrastructure when a long-term deal with Ticketmaster, now seen as a competitor, expires at the end of this year. Selling tickets, music and merchandise directly to fans through artist websites is part of the company plan. It is also expected to invest in venues.

Live music will survive the economic downturn, he predicted. Mr Fogel said: “The biggest names were underpriced for years and people will still pay to see them. But festivals and some mid-to-lower ranking acts, who are over-priced, will suffer.”

http://business.timesonline.co.uk/tol/business/industry_sectors/media/article4237420.ece

UPDATE 1-Live Nation ramps up ticketing plans with CEO
NEW YORK, June 30 (Reuters) - Concert promoter Live Nation Inc (LYV.N: Quote, Profile, Research, Stock Buzz) said on Monday it appointed the first chief executive of its new ticketing unit in the latest move to fulfill its ambitions to be a full-service music business company.

Live Nation said it promoted Nathan Hubbard to the position of CEO, charged with creating a new concert ticketing company which will also oversee LiveNation.com, the website through which it sells many of its tickets.

Hubbard was previously CEO of Musictoday, a ticketing company which Live Nation bought in 2006 and developed the system through which the company now sells more than 2 million tickets a year.

Live Nation has made headlines in the last year with its high profile moves beyond concert promotion to sign established artists like Madonna, U2 and Jay-Z to recording contracts and merchandising deals.

But one of the Los Angeles company's more pressing challenges is a move to establish its own ticketing business once its long-term contract with market leader Ticketmaster runs out at the end of the year. Ticketmaster is being spun off from its parent IAC/InterActiveCorp (IACI.O: Quote, Profile, Research, Stock Buzz) later this summer.

Live Nation said Hubbard had built a platform that will enable the company to handle an expected 20 million tickets worldwide when it takes over all of its own operations.

Once established, the new ticketing unit is also expected to eventually be a competitor to Ticketmaster for third party contracts at venues and festivals not owned by Live Nation.

The strategy to evolve into a 360-degree music company has ruffled some feathers in the music industry as it pits Live Nation against many long-term business partners such as record labels, merchandisers and ticketing companies.

The business evolution has even caused conflict within Live Nation's own management. This month former chairman Michael Cohl stepped down from the board over a disagreement with Live Nation CEO Michael Rapino because he wanted Live Nation to increase the pace at which it signs up big name artists. Cohl is now a consultant with the company. (Reporting by Yinka Adegoke, editing by Dave Zimmerman)



- reuters

No wonder the public is trashing their stock.They pay Madonna 120 mil up front and 'hope" to recoup 70 mil over three tours? Hell even if she makes 3 top selling albums over that span say at 3 mil sales each Live would need to make almost 6 bucks an album to break even on the 120.I'm surprised Mick didnt jump on this as it looks like easy money for the artist.