NY Post: Live Nation Looking To Outsource?
July 30, 2008 at 5:09 AM (PT)
After paying mega-millions to MADONNA, JAY-Z, SHAKIRA and NICKELBACK for the rights to distribute their respective future albums, LIVE NATION is now talking about outsourcing the job back to one or more of the major music labels, writes BRIAN GARRITY and PETER LAURIA in THE NEW YORK POST.
Rather than an overall deal with just one label partner, CEO MICHAEL RAPINO is considering doing licensing deals on an artist-by-artist basis, a source inside LIVE NATION said. Under that scenario, WARNER MUSIC GROUP could end up handling the marketing, promotion and distribution of albums by the very acts that defected from it to join LIVE NATION: NICKELBACK and MADONNA.
"Rapino wants to outsource everything," said a second source close to the situation. "He doesn't want to build an infrastructure or carry any overhead."
News of the potential outsourcing move follows last week's dismissal of industry veterans BOB EZRIN, BOB CAHILL and BILL HEIN, all of whom were ARTIST NATION employees hired by Cohl to create a label infrastructure for Live Nation's newly signed acts.
Another option is for RAPINO to bypass the labels and strike exclusive deals directly with retailers like WAL-MART or TARGET to handle those functions, similar to what THE EAGLES did with WAL-MART.