Pop diva Madonna announced a ground-breaking record deal worth a reported $120-million over 10 years on Tuesday, that analysts say could revolutionise the music industry.

A statement released by Beverly Hill-based concert promoters Live Nation said Madonna would become the company's founding star in its new Artist Nation division as part of the unprecedented agreement.

The deal is expected to see the 49-year-old pop culture icon cement her status as the world's highest paid female singer, giving her a lucrative mix of cash and stock, reports have said.

In return, Live Nation will be granted the rights to three studio albums as well as the right to promote concert tours, sell merchandise and license Madonna's name, the Wall Street Journal reported last week.

First of its kind

The unprecedented, all-encompassing nature of the agreement is the first of its kind involving a major artist, analysts say.

Traditional record labels are keen to sign stars on similar deals as the music industry adjusts to the new realities of the digital download revolution, which has led to plunging CD sales.

In the past, headline acts like Madonna would release new work through a major label before brokering separate deals for touring and merchandising with specialist companies.

Increasingly however, music industry players are seeking to secure wide-ranging deals that allow them to tap into multiple revenue streams, such as endorsements, concert ticketing and merchandising.

The financial terms and duration of the deal were not released in a statement issued by Live Nation chief executive Michael Rapino on Tuesday.

Paradigm shift

"The paradigm in the music business has shifted and as an artist and a business woman, I have to move with that shift," Madonna said in the statement.

"For the first time in my career, the way that my music can reach my fans is unlimited. I've never wanted to think in a limited way and with this new partnership, the possibilities are endless.

"Who knows how my albums will be distributed in the future? That's what's exciting about this deal — everything is possible."

Rapino described the deal as a "a defining moment in music history".

"I am thrilled that Madonna, who is also now a shareholder in our company, has joined with us to create a new business model for our industry."

The statement said the deal covered all of Madonna's future music and music-related businesses, including the exploitation of the Madonna brand new albums, touring, merchandising, fan club/web site, DVDs, music-related television and film projects and sponsorship agreements.

"It benefits the artist by having one company do it all because the agendas are aligned," Jon Cohen, co-president of Cornerstone Promotion, a music marketing company told Time magazine.

The exact status of Madonna's relationship with long-time studio backers Warner Bros Records was not clear.

The singer said in the statement she had a deal to release a new album with the company next year, adding: "We still have work to do together."

Increasing innovation needed

The deal comes as music acts look for increasingly innovative ways to market their records, with some opting to bypass record labels altogether. British band Radiohead last week released their new album online, allowing fans to determine how much they would pay for it.

Since the release of her 1982 debut single 'Everybody', Madonna has become one of the most successful female singers in history, releasing a string of chart-topping albums and singles.

According to recent figures her album sales alone have topped more than $200-million while her most recent world tour, 2006's 'Confessions Tour', was the highest-earning tour by a female artist.

Madonna is widely regarded as the world's highest-earning female singer while Forbes magazine estimated her worth at $325-million, in its ranking of the wealthiest women in entertainment, behind chat-show queen Oprah Winfrey, 'Harry Potter' creator J.K. Rowling and lifestyle guru Martha Stewart.

AFP