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Another look at a new music business model

I am a bit behind in reading my subscription to Rolling Stone magazine.  I find myself putting it aside for something else to peruse because of an article or two in one issue that has caught my attention.  Yet at that moment, I do not have the time to place my full attention to the feature.

The other day I set aside some time and dusted off the May 1, 2008 issue.  The magazine was cracked open to page 11, with an article about a new business model in the music industry.  As you may have seen before here, this type of information always captures my awareness.

Earlier this year, I posted about 360-degree record deals.  This more recent article speaks about the world’s largest concert promoter, Live Nation.  It’s another situation I call “one-stop shopping.”  Live Nation hopes to work with bands not only promote tours, but have a stake in the merchandising, the band website, albums, DVDs, and more.  Each deal may not be the same for each group.  The article lists U2, Madonna, Jay-Z and Jonas Brothers as clients.

In addition, the article acknowledges that Live Nation is looking for more access to the consumer, by running fan clubs and perhaps offer MP3’s to fans who buy tickets to their concerts. In an attempt to participate in other products based around the live concert experience, Live Nation has extended into the ticket sales department and will apparently cast off Ticketmaster in favor of using their own system.

As many folks know, the live show is often the main cog in the system for many artists to keep running in the current state of the music business.  So this wide-range model does make sense.  Though time will tell if Live Nation is moving in the right direction.