Music industry watch

Reading between the lines in the Madonna deal

Yesterday it was announced that Madonna is leaving Warner Music Group and signing on with Live Nation, a concert promoter.

What?

That's right -- Live Nation is a concert promoter and not a label. While there is plenty of speculation about the finances behind the deal and wether its good for Warner and bad for Live Nation, the deal sends one strong message: The concert is the future of the music industry.

Music fans are less likely to spend money on music these days and the ways of getting the music for free are numerous. But, seeing a concert is a big ticket event these days. Ticket prices are skyrocketing as artists are trying to make up for losses in music sales.

But, I see problems with this approach as well. I personally won't shell out in excess of $100 for a massive concert where I get searched and can't bring in my own water. Attendees get gouged at every step and turn in these concerts and fans are increasingly staying away from these concerts.

So, the new music industry is going to have to reinvent the concert experience if they want it to be a serious part of their income. I'm curious to see how this will turn out.

Posted by Mayhem at October 11, 2007 02:24 PM