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Offer expires June 30, 2013. c 20124 Few, I0 Gale Una, irdixami 06.22.2013billboard.combillboard.biz FIRST DRAFT OF STARDOM At Work With Demo Singers DUMB IT DOWN How To Grow Digital PANDORA COMES TO EARTH Latest Royalty Tactic THE PRICE OF GOLD After 7 million albums, she's readyto start over."IfyouputDolly Parton, Adele and Juicy J together, you'd have it." LIFE FLIES BY IN AN INSTANT, LET'S PROTECT THE MEN WE LOVE. One in sixmenwill develop prostatecancerin their lifetimes. Every 16 minutes,a mandies of prostatecancerin the U.S. But Quincy Jones and daughter Rashida Jones, Stand Up To Cancer Ambassadors prostatecanceris often treatable. Encourage themeninyourlife to speak to their healthcareproviders about prostatecancerscreening. Visit PCF.ORG to createaplan for better prostate health. () PROSTATE CANCER y FOUNDATION TO LEARN MORE GO TO SU2C.ORG. Stand Up To Cancer isa programof the Entertainment Industry foundation, a 501 (c) (3) non-profit organize THIS WEEK Volume 125 No. 24 VIEVVPINT FEATURES 22 Miley Cyrus 26 Demo singers 28 Skillet 30 Digital music TOPLINE 6 Pandora buys terrestrial radio station to circumvent licensing rules. 11 My Day John Trimble, Pandora 12 The Deal Publishers signup for iTunes Radio. 14 Think Tank Latin Notas, On the Road, Business Matters 16Questions Answered Cary Sherman, RIAA Cary BACKBEAT Sherman 18 Parties CMT tickles the Music Awards, ivories at the RIAA SESAC's Film and offices in TV Composers Washington, Awards D.C. 20 Places Essence Festival FEATURE QUESTIONS ANSWERED 21 Play Young Chop MUSIC P.22"People wanted P.16"Industriesarefearful of legislation.But ifyou 33 Skylar Grey 34 Gogol Bordello, to try tomakemethe startin the marketplace and forgeasolution,yougeta Rio Roma, AHMIR 36 Reviews Nine white Nicki Minaj. lot less resistance-and oftena moreflexible approach." Inch Nails, India.Arie, Paul That'snotwhat I'm McCartney, Qello CARY SHERMAN,RIAA 38 Happening Now tryingtodo." Yandel, Queens of the Stone Age, FEATURE City and Colour P.30 "$9.99 isnota mass-market CHARTS MILEY 41 Over the Counter price point. If the aspiration isto Chart impact from MARK the Tony Awards. push streaming music toward the 42 Charts CYRUS mainstream, something will havetogive."MULLIGAN 64 Coda Theaverage number of weeks GOOD WORKS to reach No.1on the radio charts. P.13"We raised enough fundstobuild15 able ON THE COVER schools. Pvblicwere tohelp Miley Cyrus photograph by drive eyeballs and participation froma veryspecific demographic." Brian Bowen Smith/AUGUST MELANIE STEVENSON, PENCILS OF PROMISE BILLBOARD APP MOST READ ON BILLBOARD.BIZ THIS WEEK ON BILLBOARD.COM Download this 1 Sony/ATV signs with Apple 1 Songs of the Summer chart week's issue and iRadio 2 Miley Cyrus'newsingle 2 Fullcoverageof Bonnaroo get exclusiveaccess sellingstrong 3 Apple's WWDC 3 Mac Miller, 30H!3 video to charts, news Conference4 Rolling Stones top track -by -track reviews 4 The andmore.Go to hot tours5 How five indie labels Piano Guys, Barenaked Ladies billboard.com/ipad aretrying to change distribution performances and video Q&As PHOTOGRAPH BY MATTHEW RAKOLA JUNE 22, 2013 I wWW.BILLBOARD.BIZ DIGITAL is Pandora's desire for licensing terms thatareavail- ableto manyof its competitors. In November, Pan- dora filedalawsuit in federal districtcourtseekingan adjustable -fee blanket license withtermsavailableto Roc Nation Internet radio services under the settlement between Records, Radio'sGameTheory home to J. the Radio Music Licensing Committee and ASCAP in Cole, Rita Pandorasnaps uptiny South Dakota radio 2012.That settlementcoversbroadcast and Internet Ora, Jay Electronica station in latest chessmovein ongoing battle performance royalties andsets ablanket license fee and Bridget of 1.7% ofalicensee'sgross revenueless standard de- Kelly, has for lower royaltyrates ductions (12% ofrevenuefor broadcast stations, 25% named for Internet services). The RMLC represents thema- Jason Iley By Glenn Peoples president. jority of radio stations in the United States. Hecomes A terrestrial broadcaster covered by the RMLCcan to the newly minted also offerastand-alone,non-interactive Internet radio position service that enjoys RMLC rates and deductions. The from his post November complaintnotesthat Clear Channel is ableto aspresident of Mercury payRMLC rates for its iHeartRadio service, Pandora's Records in biggest Web radio competitor, and claims "there isno the United basis for discriminating"amongsimilar types of music Kingdom. Iley will be servicesorthewaythey distribute musictolisteners. based in ASCAP believes Internet and terrestrial radio "are New York. verydifferent businesses" thatusemusic in different ways."Pandora is tryingeverytrick in the book to brazenly and unconscionably underpay and take ad- vantage of the creative labor that producesthecore offering of their business-music written by individ- ual songwriters and composers," ASCAP president Paul Williamssays. Pandora is also asking the court for rates that reflect anydirect licenses with publishers that have withdrawn new-media rights from ASCAP. EMI Music Publishing and Pandora have already reachedadeal. BMG/Chrys- alis, Universal Music Publishing Group and Warner/ Chappell have notified they intendtowithdrawnew- media rightsonJuly1.Kobalt Music Publishing plans to withdraw on Oct. 1, and Nashville -based Sea Gayle Music Publishing will followonJan.1, 2014. Lower rates would result in modest but impor- tantsavings. Performance royalties for BMI, SESAC, ASCAP, EMI and Sony/ATV repertoire accounted for 4.3%ofrevenuein the fiscalyearended Jan.31.In the Securities and Exchange Commission filing related to the KXMZ acquisition, Pandora said it believes that pandora's latestattempt tolower its royalty obligations is itsmost paying RMLC rates would result in savings of "less unconventional. The Internet radio giant has purchased adulttop than 1% of revenue,"orless than $4.3 million in the last fiscalyear.That level of savings would havere- 40 KXMZ-FM Rapid City, S.D. Terms ofthe deal weren't disclosed. duced Pandora's net loss in fiscal2013by roughly 9%. JKXMZ is in the country's 255th -largest radio marketasofthe National Music Publishers' Assn. president/CEO David Israelite calls the acquisition "another sad spring ratings period, accordingtoArbitron, withapopulation of stepin Pandora's escalatingwar onsongwriters. 108,000. Nearly 71million people listen to Pandora's Internet radio service While other digital partnersaremaking voluntary deals, Pandora chooses tosuethevery creatorswho everymonth.JBut the purchase isastrategicmovethat Pandora hopes will make its business possible." help lower the price ofthe royalties that itpaysto ASCAP,oneofthe major Pandora has also pursued lower royaltyratesfor sound recordings. Lastyearit supported the In- performing rights organizations in the United States. The company's goal ternet Radio Fairness Act, legislation that would 011/4 ..,,istotake advantage ofapotential loophole in ASCAP performance royalty change the standard by which the Copyright Royalty Boardsets statutoryroyaltyrates. IRFAexpired in rules that otters lower feestobroadcast radio stations and the Internet radio January at the end of the last Congress. A similar bill services operated byownersof such stations.JAt the heart ofthe acquisition is expectedtobe introduced thisyear.0 0 BILLBOARD JUNE 22, 2013 ILLUSTRATION BY SEBASTIEN THIBAULT DIGITAL Second Bite THE AtThe Apple Action Will iTunes Radiopayoff for the music business like MYSPACE RETURNS executives hope,orjust for Thenew Myspace, NABAsscooknoh Apple's ecosystem? backed by the BROADCASTER By Ed Christman Vanderhook brothers, has FIGHT officially launchedas its Rep. Marsha rebuilt platformmoves out Blackburn, of beta and addsa new R -Tenn., slyly mobileapp.Profiles from the attacked the After nearlya yearof speculation,rumorand talks, classic Myspace have been National Assn. of Broadcasters upgradedsomemberscan