We make money the new-fangled way: We invest in mook-metal bands

[kOrN] is expected to announce a new deal with concert promoter Live Nation Inc. that builds on KoRn's strategy of turning itself into an investment vehicle and redefines how revenue is split in the music business. The New York Times reports that, under the terms of the agreement, Live Nation will pay roughly $3 million for an estimated six percent stake in the band's box office, licensing, publishing, merchandise and CD revenue for its recently released album, See You On The Other Side, as well as its next album. Live Nation will also be the exclusive promoter of KoRn's concerts in the United States. This is definitely a new business model since typically, a promoter agrees to pay the band an upfront fee or a split of the box office sales. However, with KoRn, the Times says that Live Nation will pay for the band's production expenses and it will put all of the ticket revenue into the partnership to be split. The corporation will also throw in a portion of the money it makes from other sources, like beer and refreshment sales.

"We really are stepping 50 feet back and looking over the next four to six years at the profitability of the overall KoRn business," Live Nation CEO Michael Rapino told the Times. "It's new ground for all of us."

FMQB