The Internet Killed the CDSales Star. Madonna dumps record label.

The Internet’s killing the CD Sales Star.

Always the trailblazer, Madonna has done it again. She’s dumped the record industry, signed a US$120 million deal with LA based concert and promotion firm Live Nation to distribute studio albums, promote concert tours, sell merchandise and license Madonna’s name.

Sooo, while Madonna will not be offering direct to public albums, as Live Nation isn’t a record company- this deal shows that even for a world famous artiste like her, a record company is no longer required in these days of digital downloads and P2P music sharing.

In short, Madonna is showing where the money is: tours and promotional merchandise not CD sales. It was also reported earlier this week that Nine Inch Nails, Oasis and Jamiroquai also joined in on the movement away from the record label model. Add to that hip hop, neo soul, edgy artists established and emerging have been experimenting and succeeding with this model for a while…(to hell with CD sales, focus on singles, tours and merchandise for a larger piece of your blood-sweat-n-tears pie)…but Madonna may just be the proverbial tipping point.

Note to Caribbean Artiste: You are as good as your last single and hot video. Make them count!