This is the deal we've all been waiting for. Hip hop fans were anticipating the next big move for long time hustler Shawn "Jay-z" Carter after he and Def Jam were unable to renew his contract back in January. Today, The New York Times announced that Live Nation signed him into a 150 million deal, a record breaking one in the music industry, Madonna and U2 received the same type of deal last year. The package deal will include financing for his own entertainment venture, in addition to recordings and tours for the next decade. According to the article his outside projects, which are expected to include his own label, music publishing, and talent consulting and managing will be financed by Live Nation,they intend to contribute $5 million a year in overhead for five years, with another $25 million available to finance Jay-Z’s acquisitions or investments.
Jay-z will also receive a 10 million dollar advance per album and an advance payment of $25 million, some of that money coming from his current tour with Mary J Blige which is sold out in most cities.
Those type of deals are starting to become a trend, they were first given to established artists on the verge of retirement, but now they go to the biggest hip hop act in the world. This is going to reshape how major labels attract new talent and influence any new acts trying to get a deal. Obviously it's a sign the music industry is suffering from the slumping CD album sales and the wide popularity of music downloads, major labels are starting to look for other ways to overcome their financial losses.
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