U2 Follows Madonna: Makes A Deal With Live Nation

Concert promoter Live Nation Inc. is looking to enlist powerful allies. The latest to sign on: U2, which has reached a 12-year deal giving the promoter exclusive rights to produce the Irish rock band's concerts, manufacture and sell its merchandise, license its image and run its Web site and online fan club. The situation highlights the shifting landscape of the concert industry, as various players vie to expand their influence.

Live Nation, the world's largest concert promoter by revenue, has said it is parting ways with Ticketmaster, the biggest ticket seller, when their partnership ends at the end of this year. Live Nation plans to launch its own competing ticket service to sell seats to its own concerts as well as events staged by others.

Live Nation has also acquired several companies that run Web sites and sell merchandise for artists, and it is looking for artists to sign to record deals like the one it entered last year with Madonna -- a move pitting it against record labels. Promoters, labels and ticketing companies alike are looking for ways to expand their presence online, by acquiring companies that market and promote music on the Web.

The U2 arrangement, which follows an even broader 10-year deal with Madonna, would guarantee desirable inventory for the new ticketing service, set to launch at the beginning of 2009.