Rafael Sosa’s Weblog

Do you smell blood in the water?

In the latest seismic shift to rock the music industry, pop superstar Madonna is close to leaving Warner Music Group Corp.’s Warner Bros. Records for a $120 million deal with concert-promotion giant Live Nation Inc., according to people familiar with the deal. Madonna still has another studio album left to deliver with Warner Music.

– Wall Street Journal

The shift in power, mainly (if not totally) by the Internet distribution channel for music downloads, is causing a slow and painful death for music labels. It might be time to start filling those Christmas stockings with put options of record label companies.