The world’s largest record company has joined forces with the world’s biggest touring and management company. Live Nation and Universal Music have done a deal.
The official line is that combined the group will “expand artist services and develop direct-to-consumer offerings”. What that means to the man on the street is a new way to package artist revenue streams like music, tickets, merchandise into one product.
For example, Live Nation, owner of Ticketmaster and could mount a tour for U2 of the Rolling Stones. You buy a ticket and also get music and merch in the one price. The deal is struck between Live Nation, Universal and the artist management. Live Nation owns Front Line, the biggest artist management company in the world, also run by Irving Azoff.
The deal eliminates the middle man making it easier for a fast decision to benefit everyone in the circle.
Front Line artists include the Eagles, Neil Diamond, Fleetwood Mac, Christina Aguilera and Kenny Chesney.
For these older acts who don’t get played on the radio it means they can reach the fans with their new music by using their various revenue streams as the bridge.
“This is an unprecedented partnership that unites the world’s top music artists with the world’s leading artist management, live entertainment, event ticketing and sponsorship resources to drive innovation across our industry,” said Irving Azoff in a statement. “We see tremendous opportunities to work together to create a broad range of products built on the power of music and the direct connection between artists and fans. We look forward to working closely with Lucian Grainge and the talented UMG team in this new and exciting chapter of the music industry.”
The bundled products will be sold online via Ticketmaster. Ticketmaster is one of the top 5 eCommerce companies in the world.
“Together with Irving and Michael, we are creating a series of new platforms and global direct-to- consumer initiatives that will further expand the presence of our artists in this evolving marketplace while providing music fans with even more flexibility in how they consume music,” commented Lucian Grainge, Chairman and CEO of UMG. “Our artists and their music are at the heart of everything that we do, and by leveraging our combined skills, strengths and global reach with that of Live Nation Entertainment, our management companies, artists and their fans will benefit immeasurably.”