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..... _ , - —Phil Gallo 1 - ki i s - ...... ,:z , which has sold 1.2 million copies, accord- has sold 1.2 million copies, , which Syco produced the -biography flm produced the concert-biography Syco So, points is build- Ahdritz as out, Kobalt Kobalt’s core strength is its fexibility in of- is its fexibility strength core Kobalt’s But that’s not all that Kobalt is planning. Kobalt not all that that’s But Its acquisition of AWAL also allows the also allows of AWAL acquisition Its His empire continues to expand in the expand continues to His empire With Columbia Records, Syco hopes to Syco Records, With Columbia

PHOTOGRAPH BY DAMIEN MALONEY DAMIEN BY PHOTOGRAPH “The most important I believe thing is that lion stateside, according to Box Ofce Mojo. Ofce Box to according lion stateside, , Lindsey Buckingham and Winwood, Buckingham Steve Lindsey ’s recent visibility in the United visibility recent Simon Cowell’s with “The squarely X Factor”— has sat States Sierra can spur sales when they release their they release when spur sales can Sierra handle their own recordings. their own handle has yet to be picked up for a fourth up for season, be to picked has yet fering various publishing models in an evolv- models publishing various fering by-market basis. “We are rolling out our dis- rolling are “We basis. by-market break recent U.K. “X Factor” winner Matt Car- winner Matt Factor” “X U.K. recent break Midnight Memo- with Midnight year 200 last board Top istration fee. istration its other capabilities in the same way. in the same its other capabilities as adviser serves Group Music Kobalt parent ing music business, from established artists established from business, ing music provide whatever services you require. you services whatever provide of artists, for services and tiers” ing “diferent in the ‘X Factor’ brand,” Cowell told Billboard Billboard told Cowell brand,” Factor’ in the ‘X for “what it stands fnale, season’s last to prior ing to Nielsen SoundScan.ing to CO-OWNER, ENTERTAINMENT SYCO just as Kobalt’s music publishing operation wasoperation publishing music just as Kobalt’s the last year, that has acquired arrangement that year, the last of in the catalogs or a stake the publishing the B-52s. Christman —Ed tribution service to Australia and expanding service Australia tribution to competition singing reality head’s the label the command to and has yet on Fox airs that tion,” which is available in 26 countries. is available which tion,” than 70 countries. In March, Syco joined withSyco In March, countries. than 70 their third consecutive No. 1 debut on the Bill- 1 debut No. consecutive their third which can be translated as its average admin- as its average be can translated which who own their catalogs to those to looking to their catalogs own who will be whether season three winners Alex & Alex seasonwill be winners three whether with scripted flms and a Kingdom United fnancial statement for the year ended June 30, June ended the year for fnancial statement Guided Alex & Sierra to victory on the third marketplace, look for the company to build out build to the company look for marketplace, nel, described as “the world’s frst global audi- global frst describednel, as “the world’s view, though, his had a though, his Syco view, season of the U.S. “X Factor” signifcant year thanks to One Direction. thanks to year signifcant stage production in addition to his “X Factor” Factor” production his “X to stage in addition as the acronym implies, artists implies, without a label. as the acronym be a label to to want signed doesn’t who ager audience he once predicted. Out of publicaudience predicted. he once and what it has done for artists’ careers.” artists’ careers.” for it has done and what and “Got Talent” franchises that air in more that franchises Talent” and “Got ries cently to begin buying music publishing, while begin music to buying cently company to provide digital distribution, for, digital distribution, for, provide to company on the acquisitions and manages the assets. In and manages on the acquisitions designed for direct integration into the global into integration direct for designed or a publisher, Kobalt has a division that can has a division that Kobalt or a publisher, on a market- globally its operations expanding dle in both the United Kingdom and the States. Kingdom in bothdle the United . debut 2012, Kobalt’s gross proft percentage is 11.6%, percentage proft gross 2012, Kobalt’s Simon Cowell The test for the U.S. version of the show, which of the show, version the U.S. for The test The bottom line is, if you’re an artist or man- The bottom line is, if you’re The band of U.K. “X Factor” contestants had contestants Factor” The band of “X U.K. Afliate company Kobalt Capital launched re- Capital launched Kobalt company Afliate AWAL into the U.S.,” he says. In other words, he says. the U.S.,” into AWAL YouTube to launch the You Generation chan- Generation the You launch to YouTube

58 “One Direction: This Is Us,” grossing $28.9 mil- $28.9 grossing Us,” This Is Direction: “One

- "36 4 . ; -13,1, p . EP, which debuted at debuted which EP, Together Better A Perfect Contradiction A Perfect Looking back on the past year, Reid says, Reid says, Looking on the past year, back Epic—which 2013 closed with a market Epic additionally rolled out notable releas- out notable rolled additionally Epic On the breakthrough front, formally Epic On the breakthrough “For whatever reason, things began com- began reason, things whatever “For o. 6 on the Billboard 200. Then A Great Big Then A Great 200. 6 on the Billboard o. , which bowed, which War and Love debut line/Epic live for the idea of breaking new artists.” of the idea breaking for live leased its lishing business model, Kobalt Music Group Music model, Kobalt business lishing by up clients picks Kobalt that complain to like help to our business. Another 2013 for our business. to standout help highlight: a Grammy nod for album of the year. of nod the year. album for highlight: a Grammy bum. her Stream- The nods from stemmed by established acts and key Grammy Award Award Grammy acts and key by established ing acts. Its 2014 slate includes projects by projects includes 2014ing acts. Its slate ing together in the last few months of 2013,” months of few 2013,” in the last ing together introduced girl group . Discov- Fifth Harmony. group introduced girl FOUNDER/CEO, KOBALT MUSIC GROUP MUSIC KOBALT FOUNDER/CEO, CHAIRMAN/CEO, EPIC RECORDS EPIC CHAIRMAN/CEO, build out label services on a global scale that’s coming. Folks better watch out. We’re out. We’re watch better coming. Folks that’s the digital era and haven’t fgured ourselves fgured and haven’t the digital era tina Aguilera). “I love working with established working “I love tina Aguilera). His rebuilding year caught fire with A Great Big World, Braxton Tamar and nominations for best for R&Bnominations best performance, of and music improvement the overall me was Lamar stood out, prob-rick who as did Lorde, mains focused new and develop- on breaking man and “X Factor” judge, Antonio “L.A.” “L.A.” Antonio judge, Factor” man and “X nominations. Future, R&B newcomer Kesington Kross, Kat R&B Kross, Future, Kesington newcomer Epic-distributed Rhone’s Sylvia (on Dahlia Reid says. “I’m very excited about the music about the music excited very “I’m Reid says. R&B al- song contemporary and best urban . R&B/Hip-Hop market-rate 5% administration fee. But ac- But 5% fee. administration market-rate nerves of the old-guard industry players. They industry players. of the old-guard nerves Reid presided over a year of rebuilding that in- that of rebuilding a year over Reid presided Ciara, Yo Gotti and Sara Bareilles. Bareilles’ Bareilles’ Bareilles. Gotti and Sara Yo Ciara, great music that will continue 2014.” will into that music great giving away services and by charging a below- services and by charging giving away set share of 2.5% in albums plus track-equivalent of 2.5% plus track-equivalent share in albums at No. 2 on the Billboard 200 and No. 1 on Top 1 on Top 200 and No. 2 on the Billboard No. at Lewis and Kend- & Ryan Macklemore artistry. of a year This was had the songably of year. the Nielsen SoundScan—re- to according albums, No longer juggling dual roles as Epic chair- Epic as roles dual juggling longer No artists,” Reid says, “but I’m also thrilled by and also thrilled “but I’m Reid says, artists,” N and its leader Willard Ahdritz still get on the still get Ahdritz Willard and its leader and Paloma Faith’s forthcoming third Faith’s Pulses and Paloma Sara Bareilles cooking.” —Gail Mitchell cooking.” cluded artist breakthroughs, notable releases releases notable artistcluded breakthroughs, out yet. But the streaming business, with the business, the streaming But out yet. and fxture will be a great Music, of Beats debut cording to the company’s most recent annual most recent the company’s to cording ered through Fox’s “,” the act re- “The X Factor,” Fox’s through ered es by such established acts as Avril Lavigne, Lavigne, acts as Avril established by such es World scored a platinum Billboard Hot 100 top Hot Billboard a platinum scored World 10 hit with “Say Something” (featuring Chris- Something” (featuring 10 hit with “Say That joined Tamar Braxton’s three Grammy Grammy three Braxton’s joined Tamar That Vested in Culture), Karmin’s full-length debut Karmin’s in Culture), Vested A key buyerA key for publishing assets looks to As a disruptor of the traditional music pub- music ofAs a disruptor the traditional brought Epic a year-end Epic brought Unrest Blessed The 56 57 Antonio “L.A.” Reid “L.A.” Antonio Willard Ahdritz “We’re redefning ourselves as an industry in ourselves redefning “We’re

Antonio “L.A.”Antonio Reid Simon Cowell WorldMags.netWorldMags.net Tim Westergren photographed the Pandora at offices in Calif. Oakland. —Glenn Peoples WorldMags.net

lif. “I was really moved,” says Pandora’s chief strategy ofcer strategy chief Pandora’s says moved,” really “I was lif. the name of service he co-founded the 8-year-old radio Internet went up on the building that houses its ofces in Oakland, Ca- houses that its ofces in Oakland, up on the building went and public face of the country’s largest Internet radio service. service. radio Internet largest of the country’s face and public Tim Westergren’s most memorable moment of 2013 when came most memorable Tim Westergren’s “There’s something about a physical manifestation of what’s es- of what’s manifestation something about a physical “There’s

BILLBOARD | FEBRUARY 1, 2014 1, | FEBRUARY BILLBOARD

55

Westergren hopes for better discourse in 2014. Upcoming features will let artists discourse in 2014. hopes better for will let features Upcoming Westergren Westergren’s nameWestergren’s is basically has synonymous He radio. with Internet Pandora’s name was certainly visible in 2013. Its monthly listener hours grew grew hours certainly name was in 2013. monthly listener visible Its Pandora’s

38 hosted town-hall meetings around the country to hear from listeners. His name listeners. from hear to the country around meetings town-hall hosted functions, collectively called Pandora for Artists, will change the conversation about the conversation Artists, for will change Pandora called functions, collectively for communication,” he says. communication,” for broadcast radio station, ostensibly to pay lower ASCAP and BMI fees, attracted con- attracted ASCAP fees, lower and BMI pay to station, ostensibly radio broadcast platform,” he says, “and the discussion will be about growing the platform.” the discussion the platform.” will be about growing “and he says, platform,” pays and publishers through BMI and ASCAP. “It was not a pretty year year not a pretty was “It and ASCAP. BMI through and publishers songwriters pays pany. The last two years have been flled with public rancor over Pandora’s payments payments Pandora’s over been rancor with public flled have years two The last pany. ucts from and Slacker. Investors have taken note of its growth and improve- ofnote its growth taken have Investors ucts Spotify from and Slacker. is attached to emails asking listeners to support its eforts to change its statutory support to its statutory listeners asking emails its eforts to change to is attached the fees paid by streaming services. “Artists will get a window into the value of into the a window will get services. “Artists paid by streaming the fees troversy from rights holders. The year ended with Pandora in court over the fees it in court the fees over with Pandora ended The year holders. rights from troversy to rights holders, artists and songwriters. Last year, Pandora’s purchase of a small purchase Pandora’s artists Last year, and songwriters. holders, rights to royalty structure—and is also attached to the com- ofmuch aimed at the criticism ments in mobile advertising. Shares of Pandora rose 189.7% and now value the and now rose 189.7% advertising. ofments in mobile Pandora Shares sentially a virtual business.” spite of iTunes Radio, Apple’s foray into Internet radio, as well as improved prod- as improved as well radio, Internet into foray ofspite Radio, iTunes Apple’s Mr. InternetMr. Radio has built a company now valued at more than $6 billion CO-FOUNDER/CHIEF STRATEGY OFFICER, PANDORA CO-FOUNDER/CHIEF STRATEGY Music Group paid for EMI Music. paid for Group Music control their identity and connect with fans on the platform. Westergren hopes these Westergren on the platform. with fans and connect their identity control company at more than $6.3 billion—more than three times the price that Universal Universal that the price billion—more times than three than $6.3 more at company

13.7% to 1.6 billion in December. Monthly listeners grew 13.6% to 76.2 million—in 76.2 to 13.6% grew listeners Monthly billion in December. 1.6 13.7% to Tim Westergren