Madonna is to leave Warner Music, her long-time record label, to sign a $120 million (£60 million) deal with Live Nation, the concert promoter behind the Live 8 events.

Madonna’s management told Warner last week that she would accept Live Nation’s offer after Warner refused to match it.

The entertainer, 49, has recorded for Warner since her eponymous 1983 debut.

The move is seen as a landmark deal in the recording industry because it will combine touring and recording rights, an arrangement regarded as increasingly attractive as record companies and promoters diversify in response to the threat of online piracy and dwindling albums sales.

Expert View

It is the Material Girl who has done best of all out of this deal, with $120 million in the bank

Dan Sabbagh

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Background

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• In deep with Madonna

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• Pop: Madonna

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Under the deal, Live Nation will have the exclusive rights to promote her lucrative tours.

Madonna's 2006 Confessions tour grossed $260.1 million, according to Billboard, including eight sellout performances at Wembley Arena, which is managed by Live Nation.

Madonna will receive a signing bonus of about $18 million and an advance of roughly $17 million, in cash and shares, for each of three albums under a ten-year deal, a source told Associated Press.

It is increasingly common for labels to strike deals that give them access to artists’ ticket sales.

Live Nation, which promotes and produces music shows, theatrical performances and other live events worldwide, has been looking to expand beyond its core businesses to offer artists services such as direct merchandising and exclusive ticket sales. Its Artist Nation division sells tickets and artist merchandise online.

Warner retains the rights to sell and license Madonna's back catalogue, including hits such as Like a Virgin and Material Girl.

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