Michael Rapino Wants To Replace The Record Label With Live Nation
There’s been a lot of buzz about the Ticketmaster/Live Nation deal, especially after the fallout concerning Bruce Springsteen tickets in New Jersey. Just prior to all of that, WSJ had an article on Live Nation’s Chief Executive Michael Rapino, and how he hopes to replace the record label as the artist’s primary industry partner. Rapino has already landed some of the so-called 360-deals with Madonna and Jay-Z locking up revenue for their future ticket sales, recordings, and merchandising rights. U2 has also set up a similar deal, though they elected to exclude rights to their recordings. It’s a big gamble forking out $120M+ to an artist for a product yet to be seen, and Rapino has been pretty selective about who they’ve approached for contracts.
Artists used to tour with the goal of selling more albums, which were their primary source of income. With revenue from album sales in the toilet, have the tables turned to where an artist’s primary income is earned from live performances? We’ve already seen artists going indie to try and increase their cut from album sales. Clearly, that’s an indicator to the fact that the old model of artist sustenance is not going to cut it today. If that is the case, is Rapino on to something by trying to capitalize on other aspects of an artist’s market?
[From WSJ]
It was well after midnight and Jay-Z was presiding over a private dining room at Katsuya, the Philippe Starck–designed Los Angeles sushi restaurant, following a sold-out show at the nearby Hollywood Palladium. The concert marked the historic 1940 venue’s reopening, after a yearlong, $18 million renovation—it is now operated by concert-promotion giant Live Nation. Seated on the rapper’s right was 19-year-old Hayden Panettiere, star of the television series “Heroes.” Jay-Z’s bodyguard, a towering 34-year-old veteran of the Dutch Special Forces named Norm, watched over the phalanx of security guards keeping paparazzi at bay on the sidewalk outside. Lakers center Andrew Bynum, who had spent much of the concert dancing shirtless with three young women, had disappeared.
When Live Nation Chief Executive Michael Rapino strode into the restaurant, Jay-Z had a waiter squeeze in an extra chair on his left. He then gestured for the server to fill Rapino’s glass with Armand de Brignac “Ace of Spades” rosé—after having told another guest not to even look at the $500 metallic-pink bottle of Champagne. But Rapino, 43, isn’t just any music exec, despite his three-day beard, black T-shirt, jeans and leather motorcycle jacket. He has suddenly become one of the most closely watched figures in the music industry.
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