Madonna is reportedly pondering hanging up on Warner Music Group in favor of life without a traditional record contract.
Last Thrusday, a follow up of a previous report by Digital Music News about a possible mega-deal involving the Queen of Pop and Live Nation – the promoter of her recent world tours – mentioned a possible broad arrangement that would place Madonna outside of a major label relationship.
The rumour quicly moved from the specialist press to the New York Post’s business news, that today reportes that – with Madonna’s existing pact with Warner Music Group winding down – her camp is considering an all-encompassing music deal with the touring giant that could be worth more than $100 million.
“An agreement, if struck, would create an entity that would manage all Madonna-related businesses, including albums, touring, merchandise and sponsorships over a multi-year period” – the New York Post writes. “Live Nation would acquire an equity stake in the pop diva’s overall business.
The joint venture company would then look to enter into an agreement with a label to handle distribution and marketing support of any Madonna album releases.”
The New York Post also talks abut the album Madonna is currently working at in London with Justin Timberlake, Pharrell, and Timbaland as “the last studio album due under her existing pact with Warner“.
“Warner Bros. Records Chairman and CEO Tom Whalley, Madonna spokeswoman Liz Rosenberg and Live Nation all declined to comment.”
“Privately, insiders regard the Live Nation talk as the opening salvo in what figures to be an extended re-negotiation of her deal, which was last extended in 2000″, the newspaper also reports.
“Sources say her camp has also been shopping to other labels the joint venture concept, which follows in the vein of deals inked by EMI with Korn and Robbie Williams.
“Confessions” – a commercial and critical comeback from 2003’s disappointing “American Life,” was Madonna’s first album with the existing Warner management team of WMG CEO Edgar Bronfman Jr., U.S. Recorded Music CEO Lyor Cohen and Whalley.
It has sold over 1.6 million copies in the U.S. and spawned a successful world tour that ranked as the top grossing series ever for a female artist. The 60-date tour generated over $193 million in reported revenues.
WMG’s stock hit a new 52-week low Friday, slidding 4.8 percent, or 65 cents, to $12.76. Live Nation closed down 3.4 percent, or 71 cents, Friday to $20.14.”
From an article by Brain Garrity, The New York Post.