New York - Concert promoter Live Nation (NYSE: LYV), which has paid millions for the touring and recording rights to artists including Madonna, Jay-Z and Shakira, is considering outsourcing the recording of albums to one or more of the major labels, The New York Post reported, citing sources inside the company.

Under such a scenario, Live Nation would likely retain a royalty of just 25-35% per album, which potentially might not even cover the artist's royalty fee commanded by the top artists it has signed.

"[Live Nation CEO Michael] Rapino wants to outsource everything," a source close to the situation told The Post. "He doesn't want to build an infrastructure or carry any overhead."

The shift in strategy comes after the departure of Live Nation chairman Michael Cohl, and Bob Ezrin, Bob Cahill and Bill Hein -- executives hired by Cohl to create a record label within the company.

Related Links:
http://snipurl.com/38h3z (New York Post)

http://www.livenation.com