Rock Band Pioneers New Economic Model
“When the hard-rock band Korn hits the road in the coming weeks to promote its new album, it will be performing not simply a string of gigs but a running experiment in music-industry finance.
“Under the terms of the arrangement, Live Nation Inc., the nation’s biggest tour promoter, will share far more than is typical for a promoter, which normally receives a cut of the band’s box-office sales but little else. Instead, the company is paying roughly $3 million for an estimated 6 percent stake in the band’s box office, licensing, publishing, merchandise and CD revenue for its recently released album, “See You on the Other Side,” and its next album, music industry executives involved in the deal say. Live Nation will also be the exclusive promoter of Korn‘s concerts in the United States.”
Jeff Leeds. Korn Sells a Stake in Itself. The New York Times. Jan. 11, 2006.
(Editor’s Note: The Times allows free access to their stories on the Web for seven days before sending the stories to the paper’s fee-based Archive.)
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