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10.12.2013 billboard.com billboard.biz YOUTUBE 3.0 Are They Paying Enough? SONG RECOGNITION GOES LIVE New Tech From Gracenote, Shazam REMEMBERING POLLY ANTHONY MANAGING THE LEGACY OF REGIONAL MEXICAN'S BIGGEST STAR UK £5.50 WorldMags.net ANOTHER AMAZING MUSIC FESTIVAL, ANOTHER 2 MILLION+ WATCHED ON TV MUSIC & FOOD FESTIV THANK YOU: ZAC BROWN BAND JASON MRAZ JOHN FOGERTY KENNY ROGERS GRACE POTTER AND THE NOCTURNALS DAWES EDWARD SHARPE & THE MAGNETIC ZEROS WILLIE NELSON & FAMILY ELI YOUNG BAND THE HEAD AND THE HEART WARREN HAYNES KACEY MUSGRAVES TROMBONE SHORTY & ORLEANS AVENUE BLACKBERRY SMOKE BROTHERS ROAD THE STELLAS FEATURING LENNON AND MAISY THE WOOD BROTHERS NIKO MOON DUGAS AJ GHENT BAND CLARE BOWEN CLAY COOK JOHN DRISKELL HOPKINS & THE MOSIER BROTHERS BAND LEVI LOWREY COY BOWLES AND THE FELLOWSHIP SPECIAL THANKS TO: ROAR MUSIC IS BACK ON TV WorldMags.netaxs WorldMags.net THIS WEEK Volume 125 No. 39 FEATURES 20 Jenni Rivera 26 YouTube 32 Top producers 37 Mexican Music Awards TOPLINE 4 Lawmaker looks GEAR to establish new performance right for broadcast P. 19 “The chord radio. 9 My Day Dennis Ashley, ICM C i progression that :1 Partners became ‘Wake 10 The Deal Beats Electronics gets Me Up!’ was the cash boost from Carlyle Group. f rst thing that 12 Think Tank On the Road, happened. Every Business Matters, Sound & Vision experience I ever 14 Questions Answered had that came out Emilio Romano, well didn’t feel Telemundo Media BACKBEAT labored over.” 16 Parties Global Citizen Festival, Advertising Week, MIKE BET Hip Hop Awards 18 Places EINZIGER Amsterdam 19 Play Mike Einziger Mike Einziger photographed QUESTIONS ANSWERED FEATURE at his studio in MUSIC Los Angeles. 51 Yandel P. 14 P. 26 52 Sky Ferreira, “I start the day from the “A year ago, Throwing Muses, The Shondes YouTube had a token 54 Reviews Paul standpoint that everything McCartney, mobile advertising Jennifer Hudson, is up for grabs.” Superchunk, business. Now it’s more Rouse 56 Happening Now EMILIO ROMANO, TELEMUNDO MEDIA than tripled. We’re laying Linkin Park, R5, Dream Theater FEATURE the groundwork for CHARTS sustainable monetization 59 Over the Counter P. 20 “Jenni Rivera was headed toward something Drake goes No. 1. for years to come.” 60 Charts big and people wanted more. People will continue 82 Coda Top 10 debuts on the looking for her in one way or another.” LUCAS WATSON, Billboard 200. ON THE COVER VICTOR GONZALEZ, UMLE YOUTUBE Jenni Rivera photograph courtesy of Fonovisa Records/ UMLE. BILLBOARD APP MOST READ ON BILLBOARD.BIZ THIS WEEK ON BILLBOARD.COM Download this 1 Apple TV software turns 1 Miley Cyrus, Pusha T reviews week’s issue and devices into music remotes 2 2 Chvrches, AlunaGeorge, get exclusive access iTunes Radio: promise vs. delivery Cassadee Pope performances to charts, news 3 Country acts on genre’s image 3 B.o.B, Incubus’ Brandon Boyd, and more. Go to problem 4 RCA signs Betty Who Paris Hilton Q&As 4 Austin City billboard.com/ipad 5 iTunes Radio’s 11 million users Limits festival coverage WorldMags.net BOYD: JATNNA NUNEZ PHOTOGRAPH BY SAMI DRASIN OCTOBER 12, 2013 | WWW.BILLBOARD.BIZ 3 WorldMags.net 0 Unlike the Performance Right Act of 2009—also introduced by Watt but stalled in both the House and Senate—the FMRA establishes only a per- formance right and doesn’t set any rates. Musical works already have this performance right. Both copyrights also enjoy rights for digital perfor- mances, reproductions and synchronizations. But broadcast radio has long created nothing but pro- motional value for labels and artists. After establishing the performance right for broadcast radio, the bill dissolves the compulsory DIGITAL license used by digital services like Pandora and creates a one-stop shop where buyers of nonin- teractive licenses can obtain collectively negoti- ated fees. SoundExchange, granted powers by the Performance FMRA to collect and distribute royalties for all noninteractive services both broadcast and digital, would be the likely party to represent artists and la- Royalties At Last? bels in negotiations. Some things wouldn’t change. Broadcast royal- Industry supporter Rep. Mel Watt introduces a bill to ties would be split just as digital performance royal- ties are split today: 50% to sound recording owners, shake up broadcast radio’s relationship with the music 45% to performing artists and 5% to non-featured biz but stays in step with a gradual market shift performing artists. In addition, the restrictions and requirements placed on playback—called the By Glenn Peoples performance complement—would carry over from the current compulsory license. Rep. Mel Once collective negotiations have taken place, Watt services and rights holders could privately negoti- ate diferent rates and terms. For example, a label could accept a lower royalty rate in exchange for promotional considerations. Or an Internet radio service could negotiate for performance terms not allowed under the compulsory license. The result could be more skips per hour, royalty-free skips or royalty-free streams for certain types of songs. The bill’s embrace of market negotiations is no- table for two reasons. First, it refects the private negotiations between broadcasters and rights own- ers that have, for the frst time, given rights hold- ers a share of broadcast radio revenue, with recent examples being Clear Channel’s deals with Warner Music Group and Big Machine, among others. The market is already heading in this direction, but the FMRA establishes a performance right and en- courages the parties to continue to work together. Second, the FMRA all but removes the Copy- right Royalty Board from a position of infuence. The three-judge panel was established to set statu- tory rates for Internet radio, satellite radio and cable radio services. The CRB will still help public radio stations settle unresolved rate negotiations, but it won’t have a say in any other rates set through market negotiations. merican businesses tend to want Capitol Hill to get out of their Broadcasters believe promotion should be way. One congressman wants to do just that for noninteractive enough value. In fact, the National Assn. of Broad- broadcast and digital radio services—but he wants to first casters’ press release includes quotes from 10 artists and executives extolling the promotional establish a new performance right for broadcast radio. ¶ power of broadcast radio. The NAB supports a bi- A partisan bill, the Local Radio Freedom Act, that Introduced Sept. 30 by Rep. Mel Watt, D-N.C., the Free Market would prevent Congress from establishing “any Royalty Act would, as its name implies, replace government intervention new performance fee, tax, royalty or other charge” with free-market negotiations. The bill would deliver a long-desired relating to the performance of sound recordings. Previous bills have failed to either establish a performance right that will ensure payment of broadcast radio royalties to performance right or change how digital royalties record labels and performing artists in the United States for the first time. are set. The current language in the FRMA may not make it out of committee. But the FRMA has a Watt, long seen as a music industry supporter, believes the bill reflects the chance to greatly afect the record business for de- value that sound recordings bring to radio broadcasts. “For many stations, cades to come. More than anything, however, the bill shows Congress wants to step aside and let the take away the music and you take away the audience,”WorldMags.net he said in a statement. market fnd its own way. 4 BILLBOARD | OCTOBER 12, 2013 WorldMags.net TOURING THE Festival Action Recognition Digital Sales Shazam and Gracenote are Down U.S. digital each working on live content track sales accelerated recognition for fans, which could their decline in the third quarter, while Nickelodeon create opportunities for venues digital album sales dipped Radio into the red after a growth Nickelodeon is and collection societies period last quarter. Total track getting into the sales are down 6% for the radio business By Alex Pham quarter and 3.4% year to date through a to 975 million, according to new partnership with Clear Nielsen SoundScan. Digital Channel’s iHeartRadio service. album sales for the third The kids TV channel has quarter decreased by nearly a new radio station called 5% to 26.9 million units, Nick Radio that launched on he allure of music festivals although year-to-date digital iHeartRadio and Nickelodeon’s album sales of 87.7 million is often just as much about website. The station, which units is still up 2.6% over discovering new bands as it will serve as a competitor to last year. A full report on the Disney’s terrestrial and online is rocking out with the groups that fans al- referral option that links users to download stores. SoundScan numbers will radio station Radio Disney, Digital music T appear in the next issue of ready know about. For festival and live event promoters, the value of will feature kid-friendly top service Rdio Billboard. is launching So what happens when you chance upon a great live automatic content recognition is less direct. 40 music and appearances its free band and want to know its name and what it’s playing? “Enabling fans to know exactly what’s happening on- by stars from its network Internet Until recently, using a song-recognition app that can stage and have more information is valuable to our fans, including Ariana Grande and radio service Big Time Rush. in the United “name that tune” wasn’t possible because live perfor- and that makes it valuable to us,” says Rick Farman, co- States, mances of songs can vary from the recorded versions founder of Superfy Presents, which puts on Outside Canada and on which such apps depend to detect matches.