Madonna is the latest artist to quit a major label.
Following Radiohead's move to digital independence, Madonna is reported to be quitting Warner Music to sign a ten year agreement with Live Nation.The Wall Street Journal reported today that Madonna is on the verge of leaving her long-time label for a $120 million, three record and touring deal with Live Nation.
The deal would commence as soon as she delivers her next album to Warner. It is the last album she owes the label under her current contract.
Under the Live Nation deal, Madonna will be given stock in the company in return for the company controlling her tours, merchandise and recorded music.
A shift of this caliber first presented itself when Robbie Williams became the first artist to sign over his merchandise and ticket sales to his record label EMI in exchange for a wad of cash.
The Madonna deal tips the Williams/EMI deal on its ear, with that deal paving the way for artists to withdraw from a major record label completely, as the case with the Live Nation deal. By making the live performance the central revenue stream, the recorded music can be used for promotional purposes to promote the gig.
The model is being adopted at a rapid rate. This week Radiohead released their new album 'In Rainbows' independently via digital download. Oasis have also indicated that their next album will be delivered to fans the same way. The Eagles also control the distribution of their next album.
In the UJ, Prince gave away over 3 million copies of his last album to promote his tour. Snow Patrol have included the CD as part of their ticket sales.
