U2 Signs 12 Year Deal with LiveNation

by Jarrett Martineau | March 31, 2008 at 03:17 pm | 341 views | add comment | 0 recommendations

Following Madonna's massive deal a few months ago, the Clear Channel spin-off and music monolithic, Live Nation, has added another massive band to their expanding rock star roster: U2.

Bono & co have signed up for an all-inclusive '360-degree' deal that will let Live Nation handle everything from their music distribution to t-shirt sales and 'branding rights'...for the next 12 years.

Is the '360-degree' deal concept going to be the de facto new business model for bands to 'get signed'? If so, I'm betting that a lot of bands will balk at the prospect of having to "give companies a piece of just about every revenue stream".

Although the band will still distribute its physical recordings through Universal Music Group, the band is letting the rapidly-diversifying concert promoter Live Nation handle its digital distribution, merchandise, and "branding rights" for the next 12 years.

U2's move represents both a break from and embrace of the 360-degree deal concept. At a time when the labels and Live Nation are trying to sign artists to 360-degree deals that give companies a piece of just about every revenue stream leading to an artist, U2 has decided that it makes sense to let someone handle the distribution of T-shirts, lunchboxes, legos and digital files -- so long as that is not the same company that sells the band's CDs.

Bono told BBC News that U2 has been in business with Live Nation for decades, an arrangement formalized by the deal. "We've been dating for over 20 years now. It's about time we tied the knot."