Jay-Z Teams Up with Live Nation

Rapper Jay-Z has given his record label the boot in favor of concert promoter Live Nation.

According to The Daily News, Jay-Z has made a $150 million deal with Live Nation for all future CDs, tours, and merchandise. Many see this as a shift for the record industry. If a big name like Jay-Z is making deals to leave his record label, Def Jam (he was once the president of Def Jam), what is going to happen next?

Jay-Z will be under contract with Live Nation for ten years. It seems that he was looking somewhere to make his business more than just his music on the radio. Blender magazine's editor in chief says, "He wants to enter into a business partnership with a concert promoter where making records is one part - and probably a small part of what he will do."

Madonna also has a $120 million deal with Live Nation and U2 also has ties to them. Live Nation isn't expected to make any money off of the deal with Jay-Z but they will most likely gain interest from smaller, unknown artists. Many artists are considering deals like this because they feel getting music out to their audience live in concert garners better results than the radio.