Record labels, artists
Korn are launching a new financial model for touring on their new US tour as a financial experiment with promoters. Live Nation Inc (the newly spun-off arm live promoting arm from Clear Channel) who will be the band’s exclusive US promoters. Live Nation will get a 6% share of their box office, licensing, publishing, merchandise and CD revenue for their current and next album according to the New York Times. The promoter is treating this as a long-term investment. Live Nation will pay the band’s production expenses and the band will also get a share (in certain circumstances) of ancillary sources such as drinks and food sold at concerts. Last September, the band signed a five-year deal with EMI whereby the label gets a share of the band’s earnings beyond recorded music. It was suggested at the time that EMI paid a $15M advance for a 25% share in all areas of the band’s earnings. This new deal with Live Nation will see all the live-related monies flow into one pot and then profits distributed three ways – to the band, the promoter and the label.