Jay-Z to sign $150m deal
2008-04-04 13:13
Los Angeles - Hip-hop mogul Jay-Z is poised to sign a $150m deal with concert promoters Live Nation, mirroring a similar ground-breaking contract signed by Madonna, it was reported on Thursday.
The New York Times said in a report that Jay-Z would part company with long-time backers Def Jam after agreeing a multi-pronged 10-year contract with Live Nation covering future recordings and tours.
The decision of yet another A-list star to eschew a deal with a traditional record label in exchange for an all-encompassing commercial contract reflected the "anarchy" sweeping the music industry, the Times report said.
Analysts say the trend is a consequence of falling CD sales which has left music industry players seeking to secure wide-ranging deals that allow them to tap into multiple revenue streams, such as concert ticketing and merchandising.
The Times report said the Jay-Z deal would be finalised later this week.
If confirmed, it will represent another coup for Beverly Hill-based Live Nation, which signed Madonna to a $120m 10-year agreement last year and this week announced a 12-year deal with Irish supergroup U2 that will cover the band's merchandising, touring and website.
Live Nation was not immediately available to comment on the Times report.