Live Nation's $120M Deal Snags Madonna

From Google's Associate Press page -

NEW YORK (AP) — Madonna's $120 million recording and touring contract with Live Nation gives the concert promoter the opportunity to tap into concert, recording, merchandising and other lucrative revenue streams. But don't discount the role that lowly ticket fees play.

The pop superstar's deal to abandon Warner Music shows how far Live Nation is willing to go to break the hammerlock Barry Diller's Ticketmaster has on online concert and sporting ticket sales.

Ticket buyers may be annoyed by the $5 or more in convenience and delivery fees tacked on to every ticket ordered online or over the phone, but they've proven to be a gold mine for Ticketmaster.

Regulatory filings show that Ticketmaster's revenues jumped 14% to $1.1 billion in 2006 and generated almost a 25% operating profit margin.

Live Nation, whose 160 venues include House of Blues and Fillmore locations, Nikon at Jones Beach in New York and London's Wembley Arena, currently is Ticketmaster's largest single generator of ticketing fees. But Live Nation has signaled it wants to bring the fee revenue in-house when its Ticketmaster contract expires in 2008 for most of its locations and in 2009 at the House of Blues venues.

Complete article here.