unofficial matter

Back in the day, recording artists made the bulk of their revenues from merchandising. Herbie Herbert, Journey’s burley manager, was the first person I was aware of who exploited this fact to great benefit. I was told that Journey made more money from merchandising sales and touring receipts than from their platinum albums.

I got a lengthy email survey from Live Nation, the big international touring promoter, asking my opinions about U2, from what albums I owned to how much I would pay for concert tickets at various sections of an arena.

Then, this morning, I read in the New York Times about Live Nation’s impending deal with Madonna.

Madonna is nearing an agreement with Live Nation, the concert promoter, that would pay her more than $100 million in exchange for three albums and the exclusive rights to promote her concerts and to market her merchandise in a wide-ranging partnership, according to people briefed on the talks.

So merchandising and touring has replaced record companies at the top of the music heap. Prince makes a huge deal with a London newspaper, Radiohead and Trent Renzor exit their major label deals to go it alone, Madonna signs with a concert promoter, Paul McCartney and Joni Mitchell sign with Starbucks, and the Eagles go to Wal Mart. Sure signs of the music business apocalypse.

I predict U2 will be the next major act to announce a deal with Live Nation. You heard it here first.