Live Nation eyes Shakira deal
2008-07-02 07:24
New York - Latin music pop star
Shakira is in talks with concert promoter Live Nation Inc for a
contract that will include touring, merchandising and
recording, according to people familiar with the talks.
The Colombian-born songstress, whose 2006 hit Hips Don't
Lie was No 1 in the United States, is expected to complete a
multimillion-dollar deal with Live Nation before the end of the
year, after months of talks.
The New York Post reported on Tuesday that the so-called
360-degree deal could be worth up to $70m, though one
person close to the artist said she should be worth more based
on her recent touring success.
Live Nation's strategy is to expand its business beyond
handling artists' touring to also offer recording,
merchandising, ticket sales and other services that have
traditionally been handled by disparate companies.
Recording rights
Live Nation already has a touring relationship with
Shakira, having handled the US leg of her "Oral Fixation"
tour last year.
People familiar with the global tour said it
had grossed over $100m.
Shakira's recording rights currently belong with Sony BMG
Music Entertainment's Epic Label.
The 31-year-old, who has sold
more than 50 million albums around the world, still has two
more studio albums to deliver - one in English and the other
in Spanish - under the Epic contract, as well as a greatest
hits album.
Sony BMG is a venture between Sony Corp and Bertelsmann.
Shakira grossed more than $100m in live show ticket
sales between 1999 and May 30, 2007, according to Pollstar
figures.
Though she has had several global hits and sold out
shows all over the world, she is particularly strong in the
Latin American/Spanish language market.
Madonna
Last year, Live Nation signed Madonna to a similar
360-degree deal for $120m over 10 years.
It has also
signed deals with rapper Jay-Z and Irish band U2.
The company believes it can improve its profit margins and
leverage the artist relationships with other business partners
through such comprehensive contracts with big-name artists.
The evolution of the business model has not been without
some difficulties.
Last month Live Nation chairperson Michael Cohl
stepped down in a disagreement with Chief Executive Michael
Rapino over the pace at which the company should sign up
artists to 360-degree deals.
Cohl, who is now a consultant to Live Nation, had wanted
the company to sign up artists at a more rapid pace.
- Reuters