Madonna's ''Sticky & Sweet Tour'': ''a ground-breaking production''
"Sticky & Sweet Tour" de Madonna: "une production révolutionnaire".
Live Nation to stick with star strategy and exclusive tour deals
From The Times
June 30, 2008
Adam Sherwin, Media Correspondent
A split at the top of Live Nation, the leader in global concert tours, will not affect the company's strategy of offering exclusive deals worth up to $150 million (£75.2 million) to star names, a leading executive in the company said.
Michael Cohl, Live Nation chairman, resigned this month after a disagreement over the music giant's strategy of luring artists including Madonna, U2 and Jay-Z with so-called 360 deals that encompass recording, touring and merchandising.
Live Nation shares have declined 19 per cent this year amid concerns that the company, which has made a loss for three years, is handing too much cash upfront to a group of wealthy and ageing artists. Mr Cohl, who turned the Rolling Stones into a $1billion touring business, wanted to snap up more top-level stars, such as Shakira, but Michael Rapino, Live Nation chief executive, favoured a more conservative approach. Arthur Fogel, head of global touring, who has taken over Live Nation Artists from Mr Cohl, told The Times: “Michael [Cohl] remains as a consultant and major shareholder. We absolutely remain committed to our strategy.”
Mr Fogel brokered the ten-year, $120 million Madonna deal, which ended the star's association with Warner Music. He produced her three most recent world tours, which grossed almost $400 million. Ticket sales for her 42-date Sticky & Sweet tour, the first under the new deal, which begins in Cardiff in August, stand at 90 per cent, with one million sold.
Mr Fogel said: “We are pretty good at doing deals which work for the artists and ourselves. This time Madonna is getting to a lot of countries and cities she hasn't visited for 15 years and people are going to see a ground-breaking production.”
Madonna will receive about $120 million in cash and stock over ten years from the company. Live Nation expects to recoup about $50 million from ticket sales, merchandising and sponsorship over a cycle of three tours, plus a possible $20 million from a stake in Madonna's fashion businesses. However, expectations that the company could earn $80 million from new albums may be far too high, given the declining recorded-music market. And the deal assumes that the star will maintain the same intensive level of touring until she is 60 years old.
Mr Fogel said that it made financial sense to lock Madonna into a long-term deal because of her “unique position and stature as an artist. She is the ‘chairman of the board' but always at the cutting edge. Her audience demographic are also likely to spend more on merchandise at shows.”
Wall Street was less impressed with the $150 million deal handed to Jay-Z. Live Nation will finance the hip-hop mogul's next business investments and recording costs, but his long-term attraction as a live artist is unclear.
Mr Fogel said: “Jay-Z is an exceptional businessman and an artist with great instincts. He will also help bring us younger artists to develop. We need to create the next generation of Madonnas and U2s.” An $80 million, 12-year deal with U2, which excludes recorded music, met with approval because of the veteran band's consistent renewal of its live show and audience.
Live Nation, worth $900 million, will develop its own ticketing infrastructure when a long-term deal with Ticketmaster, now seen as a competitor, expires at the end of this year. Selling tickets, music and merchandise directly to fans through artist websites is part of the company plan. It is also expected to invest in venues.
Live music will survive the economic downturn, he predicted. Mr Fogel said: “The biggest names were underpriced for years and people will still pay to see them. But festivals and some mid-to-lower ranking acts, who are over-priced, will suffer.”
Source: Times Online.