Jay-Z is reportedly on the verge of signing one of the most lucrative music contracts ever inked. The expensive deal will encompass his own entertainment venture, as well as recordings and tours for the next decade.
Live Nation is expected to fund his new start-up venture which will include a label, music publishing, and talent consulting and managing. The New York Times reports industry sources as saying the company will contribute $5 million a year in overhead for five years, with another $25 million available to finance Jay-Z’s acquisitions or investments.
I’ve turned into the Rolling Stones of hip-hop,” Jay-Z said in a recent telephone interview.
Executives at major record labels have privately portrayed Live Nation’s artist deals as overly expensive retirement packages for stars past their prime. Live Nation has only invested in older acts who are closer to exiting the business rather than entering. This is just another scenario of Live Nation handing out hefty paychecks to older artists hoping to build a world wide presence and total value perception.
So Jay finally found a sucker to give him the deal he was looking for. Good for him. Lol. Live Nation is in a way on the same road as Koch. People initially laughed at Koch as the home for old artists as well but eventually able to find success with new and upcoming.
I think Live Nation is signing these “elder” statesmen to add validity to there business. Madonna and Jay-Z are mega stars.. and Jay’s last album still sold better than a lot of these newer artists.
Only time will tell if these deals will be lucrative for them. But it should do wonders in helping them attract new and upcoming talent if that’s what they choose to do down the road.
We agree. Live Nation is paying to hang out with so called superstars that can barely go platinum. Newer artists outsell these old dudes 10 to 1. The latest Jay-Z record barely went platinum and hip/hop and rap live shows generally have poor ticket sales.
Companies need to lay the foundation on NEW artists, not OLD Dinosaurs. This is nothing more than a way for Jay Z to cash in. Everybody wants the major music labels to change but the artists dont want to change. They want the big advances so they can play golf 5 times a day followed by a massage.
” Everybody wants the major music labels to change but the artists dont want to change. They want the big advances so they can play golf 5 times a day followed by a massage.”
Totally agree. Especially in a genre such as hip hop where they want the large advance to purchase bling and the hot ride. This is why no one in hip hop is willing to take a chance on some of the newer models being tested by artists like Radiohead, although 50 Cent is doing a few really smart things.
Most artists in hip hop would rather play into the tired old sterotypes of being rich and fronting like the music is on the cutting edge (which it has not been in over a decade).
“The latest Jay-Z record barely went platinum….”
Yea even with the full backing of the Def Jam machine. I wonder what Live Nation feels they can do that will reverse the situation.
“rap live shows generally have poor ticket sales.”
Because idiots would rather fight.. and the music just sucks right now.