Can Concert Promoters Become The New Record Labels?

from the time-to-find-out dept

A little over a year ago, the recording industry was surprised to learn that Madonna wasn't signing a new record label contract, but instead was signing a deal with Live Nation, a big concert promoter, to handle pretty much everything having to do with her business, including releasing new CDs. The WSJ Magazine is running a long feature story about Live Nation, its founder and its ongoing strategy, wondering if it's the new business model for the recording industry. Basically, the guy behind Live Nation knows that there's good money in concert promoting, but that the margins are low. So, he's betting on a few of these "360 deals" where he gets a much larger margin on all other aspects of the business.

It's an interesting strategy that appears to be a step in the right direction, but it's unclear if it really is the future of the industry. Live Nation's strategy seems pretty risky. It involves huge upfront payments for a small number of star performers (whose older, more well-known, music is still under the copyright of earlier labels). It also doesn't seem to do much to embrace new technologies and distribution methods. Instead, it's just this guy making a grab for some big names, and trying to consolidate all their sources of revenue, taking a cut of each one. There's something to be said for that, but it would probably work better in combination with newer technologies and music distribution means -- and without those huge upfront costs that may sink the whole operation.
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: 360 deals, business models, concert promotions, concerts, madonna
Companies: live nation

Reader Comments

Subscribe: RSS

View by: Thread

  1. identicon
    Felicia McCaskill, 23 Feb 2009 @ 2:21pm

    Re: my music

    Hello Tasha

    I saw your posting on and I wanted to respond to your comment about becoming an Artist in the future. I'm not sure what type of music you are interested in singing, whether it be Gospel, R&B, Country etc... but I just wanted to encourage you to keep your dream alive and don't give up because anything is possible when you start with a strong foundation. I am the Vice President of Oasis Music, Inc. located in Columbus, OH. We are a christian independent record label and we would love to hear some of music. So with your parents approval you can send us some material to listen to. Our email addess is Be Blessed.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here

Subscribe to the Techdirt Daily newsletter

Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat

Warning: include(/home/beta6/deploy/itasca_20201215-3691-c395/includes/right_column/ failed to open stream: No such file or directory in /home/beta6/deploy/itasca_20201215-3691-c395/includes/right_column/ on line 8

Warning: include(): Failed opening '/home/beta6/deploy/itasca_20201215-3691-c395/includes/right_column/' for inclusion (include_path='.:/usr/share/pear:/home/beta6/deploy/itasca_20201215-3691-c395:/home/beta6/deploy/itasca_20201215-3691-c395/..') in /home/beta6/deploy/itasca_20201215-3691-c395/includes/right_column/ on line 8
Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it

Email This

This feature is only available to registered users. Register or sign in to use it.