Another mega-hit artist has jumped ship from a label deal. Jay-Z announced today that he has signed an all-encompassing deal with Live Nation. The concert promoter will now bankroll not just his recording and touring career, but all of his “entertainment endeavors,” including his yet-to-be-announced new label and Rocawear line of clothing. The price tag for the rapper/hustler/mogul/clothing designer? A cool $150 million.
Another mega-hit artist has jumped ship from a label deal. Jay-Z announced today that he has signed an all-encompassing deal with Live Nation. The concert promoter will now bankroll not just his recording and touring career, but all of his “entertainment endeavors,” including his yet-to-be-announced new label and Rocawear line of clothing. The price tag for the rapper/hustler/mogul/clothing designer? A cool $150 million.
Despite encompassing all aspects of his career, the partnership, according to Jay-Z, will nevertheless emphasize his touring over everything else. “In a way I want to operate like an indie band,” he said (not long after proclaiming that he had “turned into the Rolling Stones [indie darlings] of hip-hop”). “Play the music on tour instead of relying on radio. Hopefully we’ll get some hits out of there and radio will pick it up, but we won’t make it with that in mind.”
Jay-Z still has one album left on his deal Def Jam records—from which he stepped down as president last year. He is expected to put it out sometime this year, before launching into his relationship with Live Nation proper.
Live Nation reported a $12 million loss last year, and many analysts are finding it difficult to envision a scenario, under even the most generous circumstances, in which the company could recoup the $150 million it is shelling out for its newest asset. Its own higher-ups are confident, however, given the growing strength of the concert industry (revenues increased 8 percent last year to $3.9 billion) and their recent emergence into the ticketing industry, that the new partnership will pay dividends.
Jay-Z joins such worldwide sensations as Madonna and U2 in Live Nation’s ever-increasing stable of artists. Next in line to join this multi-platinum militia? Country-rockers, relative unknowns, and all-around badasses Zac Brown Band, according toThe New York Times. So will concert-goers soon have the opportunity to hear such hits as “Big Pimpin” and “Chicken Fried” on the same night? Only time will tell…