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You might have seen that Madonna's leaving Warner Brothers to sign a $120 million/three-album deal with promoters Live Nation. The usual round of "Viva La Madge!" posts went up throughout the blogosphere, but is this really good news for Madonna?
On the surface, yes, she's got plenty of cash now to start pumping Kabbalah chemicals into our water supply and she's got three more opportunities to dance in purple leotards, throw grenades at fake George W. Bushes or hell, do a Christmas record. (I know you love this, boys.)
A recent report released by Warner Brothers, called "For $120 Million, She's All Yours," casts a sad-Sally shadow on Madge's good news, as they spin-spin-spin the loss of their aerobicized songbird.
Three of their main reasons why this isn't a loss:
1. There is "headline risk associated with a Madonna defection.
However, the bigger risk would be to overpay for an artist that does
not seem to be generating the revenue to support the contract being
discussed."
2. Beside the fact that Madonna will turn 60
years old in the last year of the proposed deal, it is "fantastic" for
her but does not "make economic sense" for WMG.
3. "Her loss will not meaningfully impact Warner's near-term sales."
Ouch. While part of this is sour grapes (the music business always has room for an out-of-nowhere comeback, a fact not lost on Madge's former bosses), their reasons do make sense and highlight the strange place that anyone trying to make a living as a musician occupies.
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