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Promotions
Apr
4
Jay Z: Def Jam Out, Live Nation is in for $150 Million
April 4, 2008 | News
Jay Z is ready to leave Def Jam and start his new venture with Live Nation, a major concert promoter. The deal, totaling $150 million, is the most lucrative seen to date, including financing Jay Z’s new label called Roc Nation. Jay’s deal eclipses Madonna’s. Last year, Live Nation struck a $120 million dollar deal with the material girl. Similar to Madonna’s situation, the rapper will share revenue on merchandise, concerts, music, and other components of the entrepreneur’s career.
Jay Z has one more album left with Def Jam. His last album, “American Gangster,” sold 1 million units. This isn’t shabby. However, for a mega-star, this isn’t the pinnacle of music sales either. Live Nation, on the other hand, is banking on making this deal based on a variety Jay’s activity. They know he sold Rocawear last year for $200 million. They are investing based on his brand value, not just his albums. Live Nation is making it known that it’s not all about the sale of the record, but of the whole artist. Is this this is another step in the unveiling of the new music industry? Maybe, or maybe not. It’s really about a giant star cashing a major check-which has been going on for a while- it’s just happens to be a check from a concert promoter and not a record label. In many ways, this is a venture capital type deal. The deep pocketed company finances another entity’s endeavors, and in turn gets a chunk of the revenues. Something that’s been going on for a while.
(photo credit- Tony Samuel)
Comments
1 Comment so far
Jigga is getting paid either way. Def Jam lost out!