Last week it was Shakira; this week it’s Nickelback. Live Nation has signed the Canadian rock band to another all-encompassing 360 deal, the same type of deal it was supposedly backing away from.
Reuters: Canadian rock band Nickelback has signed a global recording, touring and merchandising deal with concert promoter Live Nation, the company said on Tuesday.
Financial details were not disclosed but an industry source familiar with the talks said the deal was worth between $50 million to $70 million. [reportedly less than they paid for Shakira]
The Nickelback deal is the latest in a string of high profile, multi-faceted deals Los Angeles-based Live Nation has signed with major artists including Madonna, Jay-Z and U2 in recent months.
Live Nation now has major artists in four big genres: pop (Madonna), hip-hop (Jay-Z), Latin music (Shakira) and rock (Nickelback). Still, the market has yet to embrace Live Nation’s strategy–its stock closed at $9.89 yesterday, down from its 52-week high of $24.03 last fall–and none of its signed artists have fully embarked on their Live Nation partnership by releasing albums through the promoter, so no one’s been able to see whether these agreements work or not.
But, say what you will about Nickelback’s music, the band sells a LOT of albums (more than 26 million to date). This is a big loss for Warner Music Group money-wise. We also can’t help but note that this is the second artist Live Nation has plucked from WMG.
The concert promoter now has four major artists signed to 360 deals (U2’s agreement is different). But it has only taken them from three major labels (WMG, Universal Music Group and Sony BMG), which makes us wonder why they haven’t taken anyone from EMI. What about those rumours of a Rolling Stones signing?
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