360° Deals in Music

A LIFELINE FOR THE MUSIC INDUSTRY? 360° DEALS IT'S BEEN A TOUGH DECADE FOR THE MUSIC INDUSTRY CD SALES HAVE COLLAPSED & DIGITAL SALES CAN'T MAKE UP FOR THE LOSS 14 12.9 BILLION U.S. DOLLARS 12 10 4 3.4 2.2 2001 2002 2003 2004 2005 2006. 2007 2008 2009 2010 - RETAIL VALUE OF CD ALBUM SHIPMENTS IN THE UNITED STATES - DIGITAL MUSIC SALES IN THE UNITED STATES SINCE 2001, GLOBAL REVENUE FROM AN% RECORDED MUSIC SÁLES DROPPED 30 26.5 BILLION U.S. DOLLARS 25 20 15.9 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 - REVENUE FROM RECORDED MUSIC SALES ÎN THE SAME TIME, THE COMBINED REVENUE OF THE TOP 50 TOURS IN NORTH AMERICA GREW 40%, MAINLY DUE TO A 39% INCREASE IN AVERAGE TICKET PRICES. $48.63 2001 TICKET PRICE TICKET PRICE $67.86 2010 TO GET A PIECE OF THE PIE, RECORD COMPANIES STARTED SIGNING ARTISTS ON MULTIPLE RIGHTS CONTRACTS. THESE 360° DEALS GRANT LABELS ACCESS TO REVENUE STREAMS BEYOND RECORD SALES (E.G. MERCHANDISE AND TOURING) IN EXCHANGE FOR A HEFTY ÅDVANCE AND GUARANTEED PAYMENTS TO THE ARTIST. NOTABLE MULTIPLE RIGHTS DEALS JAY-Z (LIVE NATION) $150 MILLION ROBBIE WILLIAMS CEMI) $160 MILLION MADONNA (LIVE NATION) $120 MILLION 2001 2002 2003 2004 2005 2006 2007 2008 2009 U2 (LIVE NATION) UNDISCLOSED SO ARE THESE DEALS REALLY PROFITABLE FOR THE LABELS? A LOOK AT SOME NUMBERS WOULD SUGGEST SO: "WATCH THE THRONE", A COLLABORATIVE ALBUM OF JAY-Z AND KANYE WEST SOLD 1.23 MILLION UNITS IN THE UNITED STATES GENERATING AROUND $15 MILLION IN REVENUE. $15 $48 THE TWO RAPPERS SOLD 398,000 TICKETS TO THEIR NORTH AMERICAN "WATCH THE THRONE TOUR". AT MILLION U.S. DOLLARS AN AVERAGE PRICE OF $121 THAT'S $48 MILLION IN REVENUE. - ALBUM REVENUE - TOUR REVENUE U2'S LATEST ALBUM "NO LINE ON THE HORIZON", RELEASED IN 2009, SOLD MORE THAN 5 MILLION UNITS WORLDWIDE. THAT'S AT LEAST $60 MILLION IN REVENUE. $60 THE FOLLOWING 360° WORLD TOUR SHATTERED RECORD AFTER RECORD. OVER THE COURSE OF $736 THREE YEARS, BONO AND CO. SOLD MORE THAN 7 MILLION TICKETS AT AN AVERAGE PRICE OF $101, GROSSING $736 MILLION! MILLION U.S. DOLLARS statista ©MYONS SOURCES: RIAA, IFPI, NIELŠEN SOUNDSCAN, POLLSTAR. STATISTA A LIFELINE FOR THE MUSIC INDUSTRY? 360° DEALS IT'S BEEN A TOUGH DECADE FOR THE MUSIC INDUSTRY CD SALES HAVE COLLAPSED & DIGITAL SALES CAN'T MAKE UP FOR THE LOSS 14 12.9 BILLION U.S. DOLLARS 12 10 6 4 3.4 2.2 2 2001 2002 2003 2004 2005 2006. 2007 2008 2009 2010 - RETAIL VALUE OF CD ALBUM SHIPMENTS IN THE UNITED STATES - DIGITAL MUSIC SALES IN THE UNITED STATES SINCE 2001, GLOBAL REVENUE FROM AN% RECORDED MUSIC SÁLES DROPPED 30 26.5 BILLION U.S. DOLLARS 25 20 15.9 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 - REVENUE FROM RECORDED MUSIC SALES ÎN THE SAME TIME, THE COMBINED REVENUE OF THE TOP 50 TOURS IN NORTH AMERICA GREW 40%, MAINLY DUE TO A 39% INCREASE IN AVERAGE TICKET PRICES. $48.63 2001 TICKET PRICE TICKET PRICE $67.86 2010 TO GET A PIECE OF THE PIE, RECORD COMPANIES STARTED SIGNING ARTISTS ON MULTIPLE RIGHTS CONTRACTS. THESE 360° DEALS GRANT LABELS ACCESS TO REVENUE STREAMS BEYOND RECORD SALES (E.G. MERCHANDISE AND TOURING) IN EXCHANGE FOR A HEFTY ÅDVANCE AND GUARANTEED PAYMENTS TO THE ARTIST. NOTABLE MULTIPLE RIGHTS DEALS JAY-Z (LIVE NATION) $150 MILLION ROBBIE WILLIAMS CEMI) $160 MILLION MADONNA (LIVE NATION) $120 MILLION 2001 2002 2003 2004 2005 2006 2007 2008 2009 U2 (LIVE NATION) UNDISCLOSED SO ARE THESE DEALS REALLY PROFITABLE FOR THE LABELS? A LOOK AT SOME NUMBERS WOULD SUGGEST SO: "WATCH THE THRONE", A COLLABORATIVE ALBUM OF JAY-Z AND KANYE WEST SOLD 1.23 MILLION UNITS IN THE UNITED STATES GENERATING AROUND $15 MILLION IN REVENUE. $15 $48 THE TWO RAPPERS SOLD 398,000 TICKETS TO THEIR NORTH AMERICAN "WATCH THE THRONE TOUR". AT MILLION U.S. DOLLARS AN AVERAGE PRICE OF $121 THAT'S $48 MILLION IN REVENUE. - ALBUM REVENUE - TOUR REVENUE U2'S LATEST ALBUM "NO LINE ON THE HORIZON", RELEASED IN 2009, SOLD MORE THAN 5 MILLION UNITS WORLDWIDE. THAT'S AT LEAST $60 MILLION IN REVENUE. $60 THE FOLLOWING 360° WORLD TOUR SHATTERED RECORD AFTER RECORD. OVER THE COURSE OF $736 THREE YEARS, BONO AND CO. SOLD MORE THAN 7 MILLION TICKETS AT AN AVERAGE PRICE OF $101, GROSSING $736 MILLION! MILLION U.S. DOLLARS statista ©MYONS SOURCES: RIAA, IFPI, NIELŠEN SOUNDSCAN, POLLSTAR. STATISTA A LIFELINE FOR THE MUSIC INDUSTRY? 360° DEALS IT'S BEEN A TOUGH DECADE FOR THE MUSIC INDUSTRY CD SALES HAVE COLLAPSED & DIGITAL SALES CAN'T MAKE UP FOR THE LOSS 14 12.9 BILLION U.S. DOLLARS 12 10 6 4 3.4 2.2 2 2001 2002 2003 2004 2005 2006. 2007 2008 2009 2010 - RETAIL VALUE OF CD ALBUM SHIPMENTS IN THE UNITED STATES - DIGITAL MUSIC SALES IN THE UNITED STATES SINCE 2001, GLOBAL REVENUE FROM AN% RECORDED MUSIC SÁLES DROPPED 30 26.5 BILLION U.S. DOLLARS 25 20 15.9 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 - REVENUE FROM RECORDED MUSIC SALES ÎN THE SAME TIME, THE COMBINED REVENUE OF THE TOP 50 TOURS IN NORTH AMERICA GREW 40%, MAINLY DUE TO A 39% INCREASE IN AVERAGE TICKET PRICES. $48.63 2001 TICKET PRICE TICKET PRICE $67.86 2010 TO GET A PIECE OF THE PIE, RECORD COMPANIES STARTED SIGNING ARTISTS ON MULTIPLE RIGHTS CONTRACTS. THESE 360° DEALS GRANT LABELS ACCESS TO REVENUE STREAMS BEYOND RECORD SALES (E.G. MERCHANDISE AND TOURING) IN EXCHANGE FOR A HEFTY ÅDVANCE AND GUARANTEED PAYMENTS TO THE ARTIST. NOTABLE MULTIPLE RIGHTS DEALS JAY-Z (LIVE NATION) $150 MILLION ROBBIE WILLIAMS CEMI) $160 MILLION MADONNA (LIVE NATION) $120 MILLION 2001 2002 2003 2004 2005 2006 2007 2008 2009 U2 (LIVE NATION) UNDISCLOSED SO ARE THESE DEALS REALLY PROFITABLE FOR THE LABELS? A LOOK AT SOME NUMBERS WOULD SUGGEST SO: "WATCH THE THRONE", A COLLABORATIVE ALBUM OF JAY-Z AND KANYE WEST SOLD 1.23 MILLION UNITS IN THE UNITED STATES GENERATING AROUND $15 MILLION IN REVENUE. $15 $48 THE TWO RAPPERS SOLD 398,000 TICKETS TO THEIR NORTH AMERICAN "WATCH THE THRONE TOUR". AT MILLION U.S. DOLLARS AN AVERAGE PRICE OF $121 THAT'S $48 MILLION IN REVENUE. - ALBUM REVENUE - TOUR REVENUE U2'S LATEST ALBUM "NO LINE ON THE HORIZON", RELEASED IN 2009, SOLD MORE THAN 5 MILLION UNITS WORLDWIDE. THAT'S AT LEAST $60 MILLION IN REVENUE. $60 THE FOLLOWING 360° WORLD TOUR SHATTERED RECORD AFTER RECORD. OVER THE COURSE OF $736 THREE YEARS, BONO AND CO. SOLD MORE THAN 7 MILLION TICKETS AT AN AVERAGE PRICE OF $101, GROSSING $736 MILLION! MILLION U.S. DOLLARS statista ©MYONS SOURCES: RIAA, IFPI, NIELŠEN SOUNDSCAN, POLLSTAR. STATISTA A LIFELINE FOR THE MUSIC INDUSTRY? 360° DEALS IT'S BEEN A TOUGH DECADE FOR THE MUSIC INDUSTRY CD SALES HAVE COLLAPSED & DIGITAL SALES CAN'T MAKE UP FOR THE LOSS 14 12.9 BILLION U.S. DOLLARS 12 10 6 4 3.4 2.2 2 2001 2002 2003 2004 2005 2006. 2007 2008 2009 2010 - RETAIL VALUE OF CD ALBUM SHIPMENTS IN THE UNITED STATES - DIGITAL MUSIC SALES IN THE UNITED STATES SINCE 2001, GLOBAL REVENUE FROM AN% RECORDED MUSIC SÁLES DROPPED 30 26.5 BILLION U.S. DOLLARS 25 20 15.9 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 - REVENUE FROM RECORDED MUSIC SALES ÎN THE SAME TIME, THE COMBINED REVENUE OF THE TOP 50 TOURS IN NORTH AMERICA GREW 40%, MAINLY DUE TO A 39% INCREASE IN AVERAGE TICKET PRICES. $48.63 2001 TICKET PRICE TICKET PRICE $67.86 2010 TO GET A PIECE OF THE PIE, RECORD COMPANIES STARTED SIGNING ARTISTS ON MULTIPLE RIGHTS CONTRACTS. THESE 360° DEALS GRANT LABELS ACCESS TO REVENUE STREAMS BEYOND RECORD SALES (E.G. MERCHANDISE AND TOURING) IN EXCHANGE FOR A HEFTY ÅDVANCE AND GUARANTEED PAYMENTS TO THE ARTIST. NOTABLE MULTIPLE RIGHTS DEALS JAY-Z (LIVE NATION) $150 MILLION ROBBIE WILLIAMS CEMI) $160 MILLION MADONNA (LIVE NATION) $120 MILLION 2001 2002 2003 2004 2005 2006 2007 2008 2009 U2 (LIVE NATION) UNDISCLOSED SO ARE THESE DEALS REALLY PROFITABLE FOR THE LABELS? A LOOK AT SOME NUMBERS WOULD SUGGEST SO: "WATCH THE THRONE", A COLLABORATIVE ALBUM OF JAY-Z AND KANYE WEST SOLD 1.23 MILLION UNITS IN THE UNITED STATES GENERATING AROUND $15 MILLION IN REVENUE. $15 $48 THE TWO RAPPERS SOLD 398,000 TICKETS TO THEIR NORTH AMERICAN "WATCH THE THRONE TOUR". AT MILLION U.S. DOLLARS AN AVERAGE PRICE OF $121 THAT'S $48 MILLION IN REVENUE. - ALBUM REVENUE - TOUR REVENUE U2'S LATEST ALBUM "NO LINE ON THE HORIZON", RELEASED IN 2009, SOLD MORE THAN 5 MILLION UNITS WORLDWIDE. THAT'S AT LEAST $60 MILLION IN REVENUE. $60 THE FOLLOWING 360° WORLD TOUR SHATTERED RECORD AFTER RECORD. OVER THE COURSE OF $736 THREE YEARS, BONO AND CO. SOLD MORE THAN 7 MILLION TICKETS AT AN AVERAGE PRICE OF $101, GROSSING $736 MILLION! MILLION U.S. DOLLARS statista ©MYONS SOURCES: RIAA, IFPI, NIELŠEN SOUNDSCAN, POLLSTAR. STATISTA A LIFELINE FOR THE MUSIC INDUSTRY? 360° DEALS IT'S BEEN A TOUGH DECADE FOR THE MUSIC INDUSTRY CD SALES HAVE COLLAPSED & DIGITAL SALES CAN'T MAKE UP FOR THE LOSS 14 12.9 BILLION U.S. DOLLARS 12 10 6 4 3.4 2.2 2 2001 2002 2003 2004 2005 2006. 2007 2008 2009 2010 - RETAIL VALUE OF CD ALBUM SHIPMENTS IN THE UNITED STATES - DIGITAL MUSIC SALES IN THE UNITED STATES SINCE 2001, GLOBAL REVENUE FROM AN% RECORDED MUSIC SÁLES DROPPED 30 26.5 BILLION U.S. DOLLARS 25 20 15.9 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 - REVENUE FROM RECORDED MUSIC SALES ÎN THE SAME TIME, THE COMBINED REVENUE OF THE TOP 50 TOURS IN NORTH AMERICA GREW 40%, MAINLY DUE TO A 39% INCREASE IN AVERAGE TICKET PRICES. $48.63 2001 TICKET PRICE TICKET PRICE $67.86 2010 TO GET A PIECE OF THE PIE, RECORD COMPANIES STARTED SIGNING ARTISTS ON MULTIPLE RIGHTS CONTRACTS. THESE 360° DEALS GRANT LABELS ACCESS TO REVENUE STREAMS BEYOND RECORD SALES (E.G. MERCHANDISE AND TOURING) IN EXCHANGE FOR A HEFTY ÅDVANCE AND GUARANTEED PAYMENTS TO THE ARTIST. NOTABLE MULTIPLE RIGHTS DEALS JAY-Z (LIVE NATION) $150 MILLION ROBBIE WILLIAMS CEMI) $160 MILLION MADONNA (LIVE NATION) $120 MILLION 2001 2002 2003 2004 2005 2006 2007 2008 2009 U2 (LIVE NATION) UNDISCLOSED SO ARE THESE DEALS REALLY PROFITABLE FOR THE LABELS? A LOOK AT SOME NUMBERS WOULD SUGGEST SO: "WATCH THE THRONE", A COLLABORATIVE ALBUM OF JAY-Z AND KANYE WEST SOLD 1.23 MILLION UNITS IN THE UNITED STATES GENERATING AROUND $15 MILLION IN REVENUE. $15 $48 THE TWO RAPPERS SOLD 398,000 TICKETS TO THEIR NORTH AMERICAN "WATCH THE THRONE TOUR". AT MILLION U.S. DOLLARS AN AVERAGE PRICE OF $121 THAT'S $48 MILLION IN REVENUE. - ALBUM REVENUE - TOUR REVENUE U2'S LATEST ALBUM "NO LINE ON THE HORIZON", RELEASED IN 2009, SOLD MORE THAN 5 MILLION UNITS WORLDWIDE. THAT'S AT LEAST $60 MILLION IN REVENUE. $60 THE FOLLOWING 360° WORLD TOUR SHATTERED RECORD AFTER RECORD. OVER THE COURSE OF $736 THREE YEARS, BONO AND CO. SOLD MORE THAN 7 MILLION TICKETS AT AN AVERAGE PRICE OF $101, GROSSING $736 MILLION! MILLION U.S. DOLLARS statista ©MYONS SOURCES: RIAA, IFPI, NIELŠEN SOUNDSCAN, POLLSTAR. STATISTA A LIFELINE FOR THE MUSIC INDUSTRY? 360° DEALS IT'S BEEN A TOUGH DECADE FOR THE MUSIC INDUSTRY CD SALES HAVE COLLAPSED & DIGITAL SALES CAN'T MAKE UP FOR THE LOSS 14 12.9 BILLION U.S. DOLLARS 12 10 6 4 3.4 2.2 2 2001 2002 2003 2004 2005 2006. 2007 2008 2009 2010 - RETAIL VALUE OF CD ALBUM SHIPMENTS IN THE UNITED STATES - DIGITAL MUSIC SALES IN THE UNITED STATES SINCE 2001, GLOBAL REVENUE FROM AN% RECORDED MUSIC SÁLES DROPPED 30 26.5 BILLION U.S. DOLLARS 25 20 15.9 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 - REVENUE FROM RECORDED MUSIC SALES ÎN THE SAME TIME, THE COMBINED REVENUE OF THE TOP 50 TOURS IN NORTH AMERICA GREW 40%, MAINLY DUE TO A 39% INCREASE IN AVERAGE TICKET PRICES. $48.63 2001 TICKET PRICE TICKET PRICE $67.86 2010 TO GET A PIECE OF THE PIE, RECORD COMPANIES STARTED SIGNING ARTISTS ON MULTIPLE RIGHTS CONTRACTS. THESE 360° DEALS GRANT LABELS ACCESS TO REVENUE STREAMS BEYOND RECORD SALES (E.G. MERCHANDISE AND TOURING) IN EXCHANGE FOR A HEFTY ÅDVANCE AND GUARANTEED PAYMENTS TO THE ARTIST. NOTABLE MULTIPLE RIGHTS DEALS JAY-Z (LIVE NATION) $150 MILLION ROBBIE WILLIAMS CEMI) $160 MILLION MADONNA (LIVE NATION) $120 MILLION 2001 2002 2003 2004 2005 2006 2007 2008 2009 U2 (LIVE NATION) UNDISCLOSED SO ARE THESE DEALS REALLY PROFITABLE FOR THE LABELS? A LOOK AT SOME NUMBERS WOULD SUGGEST SO: "WATCH THE THRONE", A COLLABORATIVE ALBUM OF JAY-Z AND KANYE WEST SOLD 1.23 MILLION UNITS IN THE UNITED STATES GENERATING AROUND $15 MILLION IN REVENUE. $15 $48 THE TWO RAPPERS SOLD 398,000 TICKETS TO THEIR NORTH AMERICAN "WATCH THE THRONE TOUR". AT MILLION U.S. DOLLARS AN AVERAGE PRICE OF $121 THAT'S $48 MILLION IN REVENUE. - ALBUM REVENUE - TOUR REVENUE U2'S LATEST ALBUM "NO LINE ON THE HORIZON", RELEASED IN 2009, SOLD MORE THAN 5 MILLION UNITS WORLDWIDE. THAT'S AT LEAST $60 MILLION IN REVENUE. $60 THE FOLLOWING 360° WORLD TOUR SHATTERED RECORD AFTER RECORD. OVER THE COURSE OF $736 THREE YEARS, BONO AND CO. SOLD MORE THAN 7 MILLION TICKETS AT AN AVERAGE PRICE OF $101, GROSSING $736 MILLION! MILLION U.S. DOLLARS statista ©MYONS SOURCES: RIAA, IFPI, NIELŠEN SOUNDSCAN, POLLSTAR. STATISTA