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01.25.2014 • billboard.com • billboard.biz PAUL MCGUINNESS The Exit Interview MIDEM PREVIEW International Power Players BEATS MUSIC What’s The Marketing Plan? ALOE BLACC STERN Happy At Last (Wouldn’t You Be If You Had 9 Million Listeners, No Restrictions And wA Mega-Million Paycheck?) “This Is My Dream. We’ve Created A New Home For Broadcasters.” UK £5.50 WorldMags.net MSG 0WorldMags.netENTERTAINMENT WorldMags.net THIS WEEK 25 Volume 126 JAN 2014 No. 2 VIEWPOINT [FEATURES 22 Howard Stern FEATURE 28 Paul McGuinness 34 International Power Players P.22 “In 10 years, broadcasters 47 MIDEM will be king. Every broadcaster TOPLINE 4 Beats Music who has real drawing power will 8 My Day Ben Swanson, Secretly control his own destiny.” Canadian/ Secretly Label HOWARD Group 12 Questions SH Answered ALLSTAR 57ADI Bob Frank, STERN SHEA A.U! TUES.; Qello/Bob Frank - Entertainment 14 The Deal Tribute FEATURE to buy Gracenote. 16 Think Tank Digital Domain, P.34 “If we started in the Opinion, Business U.S., we would have been a Matters BACKBEAT U.S.-centric company. Instead, 18 Parties Golden Globes, we wanted to embrace the “Beautiful: The Carole King complexity of the world.” Musical” 21 Places NAMM AXEL DAUCHEZ MUSIC 51 Phantogram DEEZER 52 Neneh Cherry, Katy B, Holychild, St. Vincent FEATURE 54 Reviews Eric Church, Shakira, Jay Z, Beat P.28 “I remember playing Bob Frank 56 Happening photographed at Now Lucy Hale, Qello’s offices in Aloe Blacc, John New York. The Joshua Tree at Newman CHARTS MIDEM to the people QUESTIONS ANSWERED 59 Over the Counter that were going to have to “Frozen” at No. 1 for a second P.12 week. sell it around the world. “Never let 60 Charts 82 Coda Billboard Their eyes were lighting Hot 100 songs by a company BOB streams, airplay up. I could see them and sales. defne you— FRANK thinking, ‘Bonus time.’” ON THE COVER Howard Stern photograph by Andrew Eccles. Grooming by D R A PAUL McGUINNESS QELLO O Toni Coburn. B L you defne it.” L I B / G R E B S K C I L E G T A : K D L R O G W I BILLBOARD APP MOST READ ON BILLBOARD.BIZ T B THIS WEEK ON BILLBOARD.COM A E R Download this 1 1 ; A G ER Chart moves: Lady Gaga, Performances by A Great C ,Flow, At Us< I G A M week’s issue and 2 M the Fray, the White Stripes Big World, Young the Giant L I F / Z get exclusive access T 3 2 3 I Coachella 2014 sells out Super Sundance Film Festival V A R to charts, news F K 4 4 F Bowl music mania Beats Music: 14 artists to watch in 2014 E : J A L and more. Go to L A step-by-step walk-through 5 U2 Grammy preview: news, profiles, E H C A O billboard.com/ipad C WorldMags.netwins Golden Globe for “Mandela” photos, video and more PHOTOGRAPH BY AXEL DUPEUX JANUARY 25, 2014 | WWW.BILLBOARD.BIZ 3 WorldMags.net THE Action NET NEUTRALITY NEUTERED DIGITAL A U.S. Court of Appeals panel struck down a key provision of the FCC’s 2010 “net neutrality” ruling, potentially opening the Beating The Drum door for broadband providers to begin charging a premium for, or restricting access Beats Music’s marketing plan seen as key to growth to, certain websites and ALLEN services. The panel’s decision NAMED By Alex Pham is a setback for proponents of MARTELL the open Internet, reversing PREZ the FCC’s attempt to codify Marcie Allen, principles of equal access founder of among service providers. The music marketing firm MAC FCC says it would consider Presents, has been named its options in light of the president of the board of ruling. directors at the T.J. Martell Foundation, which focuses on raising money for leukemia, cancer and AIDS research. The board also appointed new members: Atom Factory founder Troy Carter, Citi senior VP of entertainment marketing Jennifer Breithaupt and Marty Diamond, head of the Paradigm Agency’s East Coast division. SONY/ RENZER ATV, GAYE JOINS SPIRIT FAMILY Former Will.i.am, SETTLE Universal Beats The heat is Music Electronics off at Sony/ Publishing president ATV in the “Blurred Lines” Group chairman/CEO David Luke Wood, copyright case, which pitted Renzer is named president Beats Music singer Robin Thicke and the of Spirit Music Group, the CEO Ian publisher against the family of indie publisher that owns Rogers Marvin Gaye. Sony/ATV and the catalogs of songwriters and Beats Gaye’s children have settled like Pete Townshend, Alan Electronics out of court, with the terms of & Marilyn Bergman and co-founder their agreement undisclosed. Marc Bolan. Mark Fried Dr. Dre The litigation began in August will continue as president/ (from when Thicke pre-emptively CEO and work with Renzer left) at a sued Gaye’s family for a to double the size of Spirit Consumers declaratory ruling that his through acquisitions; Electronics song wasn’t a copy of Gaye’s signing contemporary acts, Show after- “Got to Give It Up.” The family songwriters and producers; party in Las responded by countersuing and improving operations. Vegas on Thicke and Sony/ATV, which Pegasus Capitol Advisors will Jan. 9. was in the awkward and be the financial partner for legally precarious position of Spirit’s acquisitions. representing both songs. immy Iovine and Dr. Dre convinced a generation and their parents Marvin Gaye to buy $300 headphones they didn’t know they needed, bringing in 1977, the year he wrote premium audio gear to millions of mainstream listeners for the first “Got to Give Jtime. ¶ The multibillion-dollar question is whether they can do the It Up.” same with streaming music as Beats Music prepares to launch on Jan. 21. ¶ As the momentum slows for digital downloads, the $16.5 billion global recorded-music industry is increasingly looking to paid music services like Beats Music to fuel growth. ¶ So far, subscription on-demand services have stayed stubbornly in the realm of music aficionados, despite being available to consumers since December 2001, when Rhapsody launched its “all you can eat” service. Today, only about 5% of adults in the United States and Europe pay for on-demand streaming, according to MIDiA Consulting. BEATS: EATHAN MILLER/GETTY IMAGES; ALLEN: ROBIN MARCHANT/GETTY IMAGES; RENZER: DAVID LIVINGSTON/GETTY IMAGES; GAYE: MICHAEL OCHS ARCHIVES/GETTY IMAGES WorldMags.net 4 BILLBOARD | JANUARY 25, 2014 WorldMags.net I N Memoriam Donald Engel 1929-2014 The potential upside is that the small percentage already accounts for 20%-25% of overall digital mu- sic revenue, according to various industry sources. “The challenge for Beats, and the industry, will be ttorney Donald Engel, whose ground- from being tied up in long-term contracts. After Newton- in reaching totally new customers, rather than con- In the Jan. breaking legal victories for Olivia John prevailed, California lawmakers carved out new rules 18 issue, tinuing to super-serve the same set of hardcore music a review Newton-John and other musical acts for record contracts whereby artists who didn’t fulfll their fans,” MIDiA principal analyst Mark Mulligan says. of A Great snapped a record-industry strangle- commitment during the term of a deal could be sued for Beats Music is betting it can break into the main- Big World’s hold by freeing artists from their con- “lost profts” on uncompleted albums. Is There stream with a formula based on design and market- tracts, has died. He was 84. “He was defnitely not scared of the establishment,” says Anybody A ing—a combination that has worked for Beats Elec- Out There? Engel, who also successfully represented Donna attorney Larry Kenswil, who was head of business afairs tronics, the Santa Monica, Calif.-based headphone misstated its Summer, Teena Marie and Boston’s Tom Scholz in key at MCA/Universal Music Group in the 1990s. “He was release date. and speaker company that spun of Beats Music a The Epic court cases, died Jan. 15 in Redwood City, one of the lawyers labels were scared of year ago as a separate company. album arrives Calif., after a long battle with leukemia, when he represented artists in an antago- While Beats Music has yet to unveil its full mar- Jan. 21. attorney Mark Passin of Los Angeles- nistic lawsuit. He ruthlessly represented his keting plan, CEO Ian Rogers says the company is Also in the based Robins Kaplan Miller & Ciresi told clients, although personally he was always taking a broad approach to getting the word out Jan. 18 the Hollywood Reporter. a gentleman and well-liked.” Well-liked issue, a story about its service. on Mayer Engel specialized in representing enough, Kenswil notes, that Engel was able Beats Music is expected to launch with about 30 Hawthorne performers who were reeling from their to represent both artists and companies. partners, including Rolling Stone, Mojo and XXL should have contracts, and record companies often “Don Engel was the premiere litigator on mentioned magazines, all of which have contributed playlists he opened for chose to settle rather than litigate when the West Coast for many years of his very to the service and will be driving their audiences to Bruno Mars they were informed that he was hired. dynamic and eloquent career,” says Joel A. Beats Music. while on tour His clients also included musical art- Katz of Greenberg Traurig, who represents in Europe, not Rogers says the company will add more part- Miguel. ists Don Henley, the Beach Boys, Frank Justin Timberlake, Kenny Chesney, Scooter ners in time, but that the initial batch were chosen Sinatra, Michael Jackson, Cher, Dixie Braun and Troy Carter, among others.

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