New Jack Swing

Arguably the most prominent hip hop entity of all time, Jay-Z is about to get even bigger. The rapper is set to sign a pact with concert giant Live Nation that rivals the largest pay days in industry history.

The deal, reportedly worth $150 million, will give Jay financing for his own entertainment venture, in addition to recordings and tours for the next decade.

For Live Nation: access to a bountiful hip hop market that gives them an equalizer to compete with the industry's long established record labels.
The New York Times has the breakdown.

My feeling is that Jay's deflection will fastrack an industry that has been slow to form a uniform model in response to plummeting CD sales and widespread piracy. I may be the only idiot still resorting to CDs as a primary access point for new music. The majority of consumers favor online's easy access. Increased consumption however has not led to revenue boosts, as many get their online music free. This has become a monumental challenge for labels to maintain profit while combating illegal distribution.

Jay's move is not the be all, end all fix. What it does is significantly shift the pendulum away from labels, placing more control in the hands of artists and less traditional distributors like Live Nation.

It also guarantees Beyonce will be getting the wedding of her dreams.