Homepage / Technology / Jay Z has used his latest albums as corporate bargaining chips
Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software? The Power of Business Software The Benefits of a Software Board Online Data Room Review The Importance of Tech Knowledge Improving Accuracy of Financial Data Online Business Records – How to Keep Your Online Business Records Accurate and Secure What is a Board Portal De? DealRoom Review – A Review of VDR Software M&A Due Diligence for Private Companies The Virtual Data Room Review

Technology

Jay Z has used his latest albums as corporate bargaining chips

In the last four years, Jay Z has released two albums, both through non-traditional means. While most artists would sign with a record label to release their album, the most successful hip-hop artist of all time, a man worth $810 million, has made deals with a smartphone maker and carrier to cover distribution and promotion. The total value of the agreements, which include not just Jay Z’s music, but his businesses is a whopping $220 million.

Back in 2013, Jay Z struck a deal between his own label and management company Roc Nation and Samsung to release his album Magna Carta Holy Grail for an estimated $20 million, $5 million of which went toward purchasing a million copies of the album. Earlier this year, Jay Z struck a deal to sell 33 percent of his streaming service Tidal to Sprint for $200 million, raising the valuation of the company to $600 million. Sprint announced the deal would include Tidal artists releasing “exclusive content that will only be available to current and new Sprint customers,” and a $75 million budget to fund and market that content.

More from The Verge:
Pandora CEO Tim Westergren has stepped down
Samsung’s Notebook 9 Pro with S Pen is now available
Google Glass gets its first update in nearly three years

The musical fruit of that deal, Jay Z’s 13th solo album 4:44, was released June 30, exclusively to Tidal and Sprint customers

In these arrangements, Jay Z doesn’t simply benefit from sales and traditional promotions. He has turned his albums into rising tides that lift the boats that are his various enterprises. In billion-dollar brands, he’s unlocked opportunities that record labels simply can’t provide.

Samsung paid for the marketing on Magna Carta Holy Grail, and that $75 million pool from Sprint is, in part, taking care of the marketing for 4:44. Samsung paid for 1 million albums up front, while Sprint has solidified Tidal’s cash flow and valuation before the album release. And while Roc Nation benefitted from the Samsung deal, Tidal and Jay Z will both profit from the backend streams on 4:44. This will be strengthened by Sprint’s six-month free trial deal it’s offering to its 45 million customers who may want to hear Jay Z’s latest album on the streaming service.

These are things labels would usually cover — marketing would be taken care of and an advance would be paid to the artist — but labels would also take the lion’s share of the backend profit and in most cases own the artists’ master recordings as part of the record contract they signed. Instead, Jay Z has seemingly managed to figure out a way to use his talents as a legendary musician as a bargaining chip in corporate negotiations.

Frankly it’s a brilliant strategy, albeit one that’s only available to musicians who’ve already established their celebrity and their investments. There aren’t even a handful of artists that could get a deal like this done. It takes a superstar who owns their own masters, has had previous success in business, and is still culturally relevant. When you check those three boxes off you’re left with maybe three or four people in the world who can even create a similar offering.

This is a deal that began with Jay Z getting the rights to his masters back as part of his deal to become the CEO of Def Jam Records. That was followed by the launch of his own entertainment company in Roc Nation, which now represents major artists and sports figures like Rihanna and Kevin Durant. And most recently he acquired Tidal, his own streaming service, to give himself and other musicians a platform to distribute their music digitally while having a stake in its ownership. And he did all of this while maintaining arguably the best run a rapper has ever had in the music industry. These deals didn’t just happen recently, they were built over decades of work.

There may be a temptation to call these brand deals selling out, but that suggest eases or a lack of care. These deals are the product of the opposite, a person carefully, meticulously, and brilliantly turning his very identity into a brand, one that has transcended his industry. Jay Z hasn’t sold out; companies have bought in.

Like this story? Like CNBC Make It on Facebook.

Don’t miss: RuPaul’s rise from small-time musician to Hollywood icon

This article originally appeared on The Verge.

Source: Tech CNBC
Jay Z has used his latest albums as corporate bargaining chips

Comments are closed.