Madonna partners with Warner Music, again 🤔
Yesterday, Madonna and Warner Music announced a fresh partnership that cemented her relationship with the major record label
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What’s good everyone?
Yesterday, Warner Music Group announced what it called a “career-spanning global partnership” with 7-time Grammy-winning Pop Star Madonna, which includes a new agreement for her entire recorded music catalog.
But why is the 63-year-old ‘Queen of Pop’ partnering with Warner Music, again?
In 2022, Madonna celebrates the 40th anniversary of her first recording agreement with Sire Records, a subsidiary of Warner Music, and the occasion is being marked with an ‘extensive, multi-year series of catalog releases’
Warner Music already owns the majority of Madonna’s recorded music catalog, including hit albums such as Like A Virgin, Like A Prayer, and True Blue.
So why all the big fuss over this new agreement? Turns out there’s a bit of backstory attached to this 👇🏻
Back in 2007, the $20 Billion worth US-based event management company Live Nation inked a $100 million 10-year deal that shook the music industry and record labels to their core ⚡️
Live Nation, which organizes 40,000 concerts and caters to 98 Million fans annually, announced it would not only represent Madonna’s live music career and merchandise but her new recordings, too 💽
An event management company getting into the record label business, what could possibly go wrong?
Apparently, a lot.
Within just 4 years, things got really messy with their plans. Live Nation scrapped its bid to become a recorded music company, and by 2011 had agreed to license Madonna’s affected recordings to Interscope Records, home to artists such as Eminem and Billie Eilish.
Interscope subsequently went on to release Madonna’s affected albums: MDNA (2012), Rebel Heart (2015), and Madame X (2019).
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More importantly, the Live Nation / Interscope deals pulled Madonna away from an active relationship with her original partner: Warner Music.
Now, in what Warner calls a “revitalization of a decades-long relationship” and a “monumental deal”, Madonna is once again in an active relationship with the major.
Warner has additionally announced that as part of her multi-year deal with WMG, Madonna’s three Live Nation/Interscope recordings will be represented by Warner from 2025 onwards- uniting the artist’s entire catalog under one roof.
Speaking on the announcement, Madonna said 🗣
“Since the very beginning, Warner Music Group has helped bring my music and vision to all my fans around the world with the utmost care and consideration.
They have been amazing partners, and I am delighted to be embarking on this next chapter with them to celebrate my catalog from the last 40 years.”
Warner isn’t offering many more specifics about what’s actually in Madonna’s new agreement.
For all we know, in order to get her back on the Warner Music roster, it could be extra royalty points or cash in duffel bags, or both, stretch your imagination 🤷♂️
Speaking further on the deal, Warner confirmed:
“For the first time, Madonna will personally curate expansive deluxe editions for many of her landmark albums, as well as introduce unique releases for special events, and much more.”
But why are the 3 missing albums of Madonna’s catalog such a big deal for Warner?
You only have to look at their own numbers to see why catalog projects like this are a big deal for the company.
Madonna’s fanbase comprises primarily the ‘boomer’ segment that still contributes to driving high-ticket physical reissue sales, which in turn lift an artist’s streaming profile/volume.
Despite the rapidly losing relevance of physical records in today’s streaming world, in the 9 months to the end of June, WMG’s recorded music operation generated $422 million from physical music sales – over $11 million per week 💰
The value of classic song catalogs has hit hard over the past few months, with artists such as Bob Dylan and Neil Young selling their catalogs for hundreds of millions of dollars.
In such a scenario, it only makes sense for Warner Music to lock up Madonna’s entire catalog, and plan for curated releases of her ‘Greatest Hits’, sometime down the line.
Music copy-rights have become a safe asset class, that no one ever expected 📈
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