Michael Jackson Verdict May Shake Up Entertainment Industry Business Model

The wrongful death lawsuit filed by the family of late pop star Michael Jackson against his concert promoter is now in the hands of a jury, according to Reuters.

Far-reaching complications for how the entertainment industry does business with its biggest stars are also being questioned. The 21-week trial, which has opened a window into the private life and last days of the King of Pop, has put not only concert promoter AEG Live on trial but also the entertainment industry's live-performance business model, analysts say.

After closing arguments concluded on Thursday, the judge sent the jury to deliberate and a verdict is expected sometime next week, if not earlier. Jackson family lawyers have suggested in court documents that damages could exceed $1 billion. "If AEG is found liable, that puts these companies on the line for millions and billions of dollars, and it is already causing the industry to rethink how the structure is set up," said Jo Piazza, the author of "Celebrity, Inc." and a celebrity branding consultant.

Currently, entertainment producers typically pay up-front sums running into millions of dollars to performers in exchange for being able to have greater control over some of the performers' affairs.

The lawsuit alleged that "AEG came to control much of Jackson's life. The home Jackson lived in was provided by AEG; his finances were dependent on AEG, and his assets stood security if he failed to perform." Those assets included The Sony/ATV music catalog owned by Jackson, which even includes iconic Beatles songs. The verdict "could have a chilling effect on how much micro-management of a star's life companies like AEG and other production companies have," Piazza said.