(Photo: http://www.newscom.com/cgi-bin/prnh/20080708/LATU038)
Shaped by Mr. Rapino, the new partnership contemplates all areas of Nickelback’s global music enterprises, including three touring and album cycles, with an option for a fourth. Under the deal Live Nation has acquired 12 separate artist rights to feed its global distribution pipe. These include touring, tour sponsorship, tour merchandise, tour VIP/travel packages, secondary ticketing, recorded music, clothing, licensing and other retail merchandise, non-tour sponsorship and endorsements, DVD and broadcast rights, fan club, website and literary rights.
"Our relationship with everyone at Road Runner Records has been amazing throughout our career and we look forward to continuing that same great relationship for the remainder of our recording commitment with them," said Nickelback’s Chad Kroeger. "With that said, the Live Nation deal helps us maximize the band’s opportunities in all areas of our career. We are extremely confident that Live Nation’s complete global team is the world’s finest and we are excited to be a part of the Live Nation vision and future!"
"Nickelback has struck a chord with music fans all over the world and their universe continues to expand exponentially," said Mr. Rapino. "Year over year the band has sold more records and concert tickets, and has tremendous upside potential as they continue to break into new markets around the world. Our global distribution and marketing platform is uniquely positioned to help them accelerate the growth of their fan base and maximize their earnings across all their potential revenue streams. Nickelback’s addition to our incredible roster of artists confirms that we remain on plan to sign global rights deals with the world’s most successful artists to feed our core concert pipe."
"This deal with Nickelback will enable us to fully capitalize on our vertically integrated platform to connect the band with their fans, monetizing our unparalleled reach to drive revenues and increase overall margins," continued Mr. Rapino. "This partnership is structured to increase our revenue and cash flow potential significantly, while reducing our risk profile. This investment is cross collateralized, spread over multiple years and comprises multiple business opportunities."
Nickelback becomes the fourth superstar act to join the Live Nation Artists’ roster, along with Madonna, JAY-Z and Shakira, with the previously announced U2 deal expected to be completed in the coming months, as well. Nickelback has sold more than 26 million albums worldwide, with their last album selling more than 10 million units globally. They are a touring powerhouse and have built their fan base by relentlessly breaking into new markets with their live shows. Nickelback’s last tour, which visited North America and Australia in 2006/2007, sold more than 1.5 million tickets and grossed in excess of $67 million.
ABOUT LIVE NATION:
Live Nation is the future of the music business. With the most live concerts, music venues and festivals in the world and the most comprehensive concert search engine on the web, Live Nation is revolutionizing the music industry: onstage and online. Headquartered in Los Angeles, California, Live Nation is listed on the New York Stock Exchange, trading under the symbol "LYV." Additional information about the company can be found at http://www.livenation.com/ under the "About Us" section.
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SOURCE: Live Nation