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ITUNES AT 10 How It Reshaped The Industry, And What's Next NEW POWER COUPLE Scott Borchetta & Dr. Luke THE GROOVESHARK RULING What It Means Every Picture wail Tells Story Rod's Return To Rock, With A New Label & His First Original Songs In 15 Years The Boys Say Your (ar Has A aia Deck. | Say ete CSC EM eC a CO Ky Raney i my VIEWPOINT |=! 2 omer ‘Steve Jobs divided O emrorran and conquered the os labels. He was more sla David & ruthless than they everwere. They had no idea.” ANDY LAC “You can'tgive up am 14 Questions nawered 18. Partie Rock 18 Places onwhatisimportant, “For along time, I didn’t enjoy the 3 "...iew both in life and business, tet 40 & Pat butyouneedtochoose” Writing process—Ihad so many other ,, gee your battles.” things I wanted to do, like shagging Muppe ROD STEWART “Take on big marketing challenges not by swinging blindly into the fray, but by DAVID “ being smart, nimble, focused and brave.” AN G E LO onmircoven BILLBOARD APP MOST READ ON BILLBOARD.8IZ NOW ON ILLBOARD.COM Daft Punk anna and mor Poy billboard.com/ipad y ‘milion views in tvee days ith all oy, Flaming Lips 4 Kenny Placing A Smart Bet Nettwerk Music Group has raised more than $10 million for expansion. It’s the latest sign investors, are warming up to musicagain By Glenn Peoples n improving global music markets giving investors reason to look at music companies. While major deals will get done in any climate, the recorded-music market's recovery and the cooling of the music publishing market are making independent music companies attractive, too. Nettwerk Music Group has just raised $10.3 million in equity growth financing from private equity firm HBC Investments, previous investor Beedie Capital and Nettwerk’s four founding partners, Terry McBride, Ric Arboit, Dan Fraser and Mark Jowett. Nettwerk encompasses record label, artist and producer management firms and music publishing company. § “The bottom lineis the music businessis growing,” Nettwerk CEO McBride says. THE ATale Of Action ] Rul T= © TOPLINE How Teens “=. Fuel Future Digital = Consumption ‘The increasing democratization of devices and media platforms is turning kids into their own tastemakers earlier in life By Alex Pham derstanding the minksofcengeshs teens vexingocipain fr ake since the test peer ithe fg of es ‘concern hes sb atone eof ipa ctersnment nha thw co ‘lshaps th ending or deat cae "What dit Nien de Fy hey pee smart phones and tablets. US. households with tens ter gdge Second; hey spend mote tne wae Ing vieor on ther bie devies than anyother troup-sewen hours and 4k minutes per mon, ompared ih ve hours ad so mutes orale ‘ged5 34 Thin asteesseweome, hey endo ‘eiymoreon hei apoe fr enteeanmen an pray select and discover heir ow eter "inment ater than having to ve fr the remote ‘hed to oer wha thers are matching o Tien [gto says David kal, Nuon seioe VP nt development apd insights “The ae at whic ids move ay from isteing to whatever thet arent chook for he twa istening fo thet ‘rmariy because ofthese devices Fexentrinnet conan aig atin lltsapng hfe entries peserencee {dts Forel dertens and you adie ‘ge ae 42 ote ly than the serge US ‘Mi totienosreming crdemand mas. They ‘oi esl ue ANY FM rab 38 moe Talo online ditt pinay mn ae pac oconsamption for musi” Babul sa oie aps ke Titer recent eased see stay page ae also peng s ager le inhelng pope dove ew mse oko {her ensingms Brats and eammendng i ps of whater they ely more on worm ‘om thee almpotant permit beson ib 42% (9-25 Among U.S. Households Maenaetor ig Adult ; Inernet Users Aged 18-56 © [Speed US et on ty woo wv 7 INTERNET MOBILE 0 136 5 .| oes Mas 1 — | 83 59 eae Ca ape : ENWy CHESNEY ‘ Ly. fe ov A Rock a ken y CHENEY VF Ste cee nome ae FEATUCING THE +1T en ry i. =a ‘\ ‘We kennyehesay com Gi eects TOPLINE Pos Breaking Records Music supervisor Adam Joseph teams with Sony's RED to launch Record Breaker Music to support synch music artists @ An Award- v Winning Night Don Omar, Jenni Riveraare the top winners at Billboard’s Latin Music Awards The Deal Big Machine, Dr. Luke Write Together Creating a direct link between Nashville and * Los Angeles will allow the two rosters to work Outside of the genres with which they're most associated: country and beat-heavy pop. aa = IMPACT BIGMACHINEBYTHENUMBERS 9) so EXECUTIVE TURNTABLE Lanytigte ITAL Slmmater Devin Soper Team abd masini Fler Word and ur Univers! Most Group in London nce Hayley Loyd Pf gal sige Shure Mel Groups teat any Mae rent, wc manages mah Yo tcl Peter, exec@ilboord.com Further Dealings GOOD Works BottleRock's Gift TOPLINE Think Tank Vevo’s Stop And Go With its sales chiefoutand ‘margins slim, the video service heads tots second upfront presentation thinking about life beyond YouTube schist Dovid Kohl who ine wih eect by ree pest remiam nine aso Wal Set oumal pare nese "evo has so hed anced tat wt satelite preery, which onthe f ta the ot sine oc on, at Vere beleves on. they ptchit eight it woud open the door tone abe TY rnd sponsorship and sering Tilly we shot ven the opin Yevoas twine apa ebsrpon or oss wh ath eee “The startup inthe mid of «funding round ssh need parts report nce Yue Pome Gab! Mei. The ne funds wl a fossa on programming a ineratin expan RIP On RSD One retailer chose Record Store Day tog ‘ia, thagh the omer ofSound xin Brookins ming forsingshap the da after Roa Stare Ds ts among ter son eed combat maine da itsemed he wa ining om the pre of al the oe get ine Thelabelsdximake yoospecaliaced edionstoe Reco Stre Ds, sotheyst hinkbrkant-morar ea cam fr smth nf ey syste bl dont nutcoreenagh vito keep ih eat anh they nh whol on ac ems at The Limits O: #music Twitter's music service will not be game-changing, butitis a smart discovery play thatartists are already embracing widespread option could be dit Tater acgiston of We Ave Huet, which eae in he fom Titer ati the servis ries the higher tht artis wlan ots chars. ‘Chat aging ight Bpato sears a bl oti TOPLINE on CTT tad Tl ery “Evaluate which issues you keep pushing on and which ones you let go for another day.” = inni Ways ue RISINGSTAR SHOOTS BEYONDCLUBHITS TOFILMAND MORE ie sa many other aspiring artists, En lft het ‘tet, ough, shes gated plenty of an tionand shes hungry for mor ‘though she has yet to relese 9 full-length album he Youngstown, Ohio, native as aleady achieved sing of You Tube ang cub hits. With big plans for must aa lms ahead, hae eying 2013 her breakout year. featuring the uplifting "Time to Move On" and the provocative ‘ub-eady Freaker Freak though her walt femnet) and ‘he way, to couple withthe ec t-nepred chip that she recently "As scon al wastage igatn abuso New York” Emi says, rarnniseing abot her humble entance into the musi bus ess." ei the whole Iving-basementsand-atng Yanan oies hing payed in aot and wrote with homer Toul went opensrie nghts-- anything that could poe sil dot further mse ana beter myself as an arts.” “That hard work pat of whan tml eauoht the stein of Greene tear with veteran musician songwrterproducet Aeron Gort whose extensive rede ange from wring tonavde search for he best unegned singer we could finds Emifseessions th Guts produee er ft sags tha Lady ‘early 2 milion times since iting YouTube m Agr 2010 or Greene, ‘who oversees Ems roduction company (Bileegee) and ts record abe! (Sippery Eel his arate se ess begs with radia "Wed goto the dance elubs fst and tytobuld up there and then we'd goto te smal stations ‘thd ty to work our my UB” he sage "We erty promted heron Facebook, Tuite (@emimusl] and he ‘anit (oninet and what we've noticed isthe (ot hema aly ‘Dai from “Magic” Greene refering to Emre 201 single “Me Rome” the wien for {eon Emits YouTube channel and Veo did hurthat Snoop Oaga i fetued bath on the song was tle more intimidated by hin than | ae by any ster actors am the st” Em ye Inmpracteal but Snoop wes actly ely plese oance/ Ca ay Songs har psig at NaS, weeks onthe chart peaking a No.2 ‘si from her music wees Emi hae had i, she recently wrapped timing for a sci” thriler fick ealog “Starship: Ronan which Move Oo music deo feature footage fam the fim which et fora surimer ane. There ae in the coming months, Greane wil be busy Ting the venta seleoe of or debt ful-length ‘bum. "We have recorded) but people dont telly do albums s0 mach anymore he #87 ‘Given Ems ere tlt, Grea eovistons possible mth thm wold: he say rm acety ‘Sane with Mesa tits Gro to reresant Net aly ntertwined forma: Emi saye ite a entetanmen and al thing ean alegre nya trough, lve rn real havng fon BACKBEAT Beards & Bow Ties Def Jam founders and inaugurated and jammed with “More music is being used and the bastards aren’t paying us enough.” rou vasor Sweet Emotion At ASCAP Awards proudly takes home its trophy, while ASCAP president rogue to spotlight ipensation issuesat ASCAP Pop Awards. BACKBEAT PLACES ® T&E Report . Atlanta . David T. Viecelli 5 Ker arr Dead Ley BACKBEAT Gear Adventures At Hi-Fi Spoon's Jim Eno adds local flavor at his converted-garage home studio in the heart of Austin “The sound has a lot to do with the type of gear and the ow iu around the studio.” smal try he Bonde vary Metin Stet nt ec sd one se the oppose After a 15-year writer's block, Rod Stewart is back in business with Time, a set of new originals inspired in part by last year’s autobiography, and the sounds of his entire career BY MATT DIEHL PHOTOGRAPH BY ART STREIBER THE NEXT CHAPTER biechriofllsandiinions he pce anand him, oncendsop SN “The Aubin” took that rae op feline sharing ‘tection vhs ya el ar wth ue han aving hs ised tea ime tein 68a! enbles no ‘Thandlof women the pementy ackaowedget theorist ae aig a Anrte sector pe domed rot dered eterthanhe got) dress ty an enoonos green Cel lg, ie peter the eure See ee ‘Sons uns fom ie hl" gays Sate UR-esusoowredinacoal gus wich priwmemtin | meee ‘Suis One ofthe manyeoeseeminprhonedio ‘ih sciomtoepin champion hap) ie decateneseaye | REEASEDATEy7(US, Frees nthe pub Set aso ander com eea hare aged ening Wd evenes Reet | ‘umgrweam anos stetelanoul see frp acct eng aed thle excer ‘though afew pounds tnd same erie face athe oly ing, | MANAGEMENT ‘whch ly non his och ‘spurting he man nfonotyoufemthe Re Sewar whoo: | Seetamere Stewart a aks abo! mal ning Pin, fran! vocal scarves and fen psn arts ete | AN Lous Goor Als Everman from the ay Bb Dylan eared hs He bow {economic defines rock sudan inthe Po ——— he loat et its Me “Magi May” a "Freee Steyaraccenusteshsjoutl ibe withthe pink grayandiack | PRODUCKR: oe stenart ‘uno the nk pl. And edge some ofthe rinsed haze kes sporting, sla mo the Spire Ne i ‘th that alow bo ae No, ar “Red he Mad” in ning Lacon. ck the staring 9, e PUMLSWOGESeTY usc PSiNg_ {Sy soot ct pletion scet layer og evergd as es fullback starthan 29 jeer ering tis | ROOK Ge: ee art. a ru et otc Start te obese fhe ‘cal iliving hb andawingany pare ato bays | rematena Sndyes he addees tht hing ove hen! hau» Eeoport car Tie ce colle cme fm enon mad fe | ‘Elke witha iil of ela Sen Do“ The ionhaspdCarmay Sweetin hess setlingintoaplet auch, | UPCOMINGTYS Kine ay Toker pesonshspily the str abeut se “ObsGad bow dtl oum Camayishingt aden more | "Teo" lay 8 oo Maing rks? tment pig my soma anal hat bese Pndtotey tats that csc Now hare mabe tine Weh ely & cha a 10 Ratna irnwan agdagneio ‘onl thao ‘at 10) waren shy ‘ek de with ca uring nero, Sewacunpotsanaray oie epeaing | 33)"Eneraear ai 2629) ‘yomole an nupgon yt behing ha Cockney tbe quem epuces ny wth We Hetangestoghal aesthis bustier aah Ka apo 00(0S Noa teas abc urban aati Cat seutiage tear ise abs ‘evospectan sts om the ro lite, fom fatherhood he's spawned a boos of eich) andthe oywof J SSX ‘cess ping togcher his meni, [Sri maragetoPenyLancterStewan (eat bask | avomVvoary herman An Gubran ch ake wer Hck hat Ingattichlveaseredtocucermlesones ie neutyHowingte ||) eee apt hi tom pening new sage eck Grup NewYork cht back 8 Ge ones, sites mcsenricon for oe 5 Yeas Samehing eee ophlogis aod ete bee rege tpter ai oe ing abr, Tn ue Ma 7 on Capit conti the ist Sos ‘wie soap” he wisn he Gal oe. “A ole it wort of ey "The fen, wees Gesevar Stare ite nce i998 au, When We Wiehe Nw ay ‘rege dring an ira 2010 wing eon A tniue salman, Tie contin contemporary prion scithhiserson of sate Ws og, Tom Ta: sith angie seman Jn Copan “ley se ‘ith te rot neuron spd oes! eyling Wat bers Bun pred rather Mh pt dng he Tg vero ll ne er Se ot Tamed Scat int meg wih igys eat Li, Ey Fa '9ox Downton True Ton Was in stile" als ing guar sound, peseting “Lethe indo evoke ist ilar No "Mage Mey" oon his is” tar sae wth alah Rey, “heres assem bigphic bald Bh ‘ven tte hs ce Ke nou knw Ra twat sng "T_T ay enh ab Toone ha uh get i tan Bea which dosent Bora best Snatotsfatiebeadni “Thawhatgume waned Acme gery chica erin wh coud do bate ‘the Engh cost Ten nat home when ng, fits, uo dle weeny fet love ut hina was Tretred car’ been tha pel egaicace 1 Hor ther Gots or a” Ser ss. Next Ieantiobe beak. in jst dog what dest” Torrent and 1 Welvoke porate whe ar we ‘ame the suey Bak 1 ver Sethe The reo reminded me o Mage My a cng Rol eget: Are pare, ase Pe Dove ore endl conty nesta dtd Suleman CEOSeveRamctjs Tohateoneathe gest rtitsal putin ame sie my bed sa sl hat ang faa” Sear wes "Something a we maya ‘hat geertion, th habison; writers cha seclenryinpor- hsaloot meaning rae Secrets ges ho something sb” ‘antobin who wut wertabe spt” enema tat nan nr dtl “Ra Think aie tobe ponlon sect “rat tle Sewanee tere hit oranda decide ert ound a sale Tete caring gitar ok, “Fine Woman hat alee igo bee a se fo ec Group an th nes fr 968197, ening the oof the win the poces tear and eck spre bet Le Ze Pelnt spe hole Bey yearn he Fesbeathe ens to Bory sant boss byte) The danas deen tou gore o "Sena Rtg’ even eles spit won Sevag ic ge hone ak nS txcvor i dang to het Seat sing evrytan es he “Tia ttm ina fel overt isco hapentome/ Ingout daly ed watching wasn” She kes Me Happ ten Timea covert Pe,” by Tom Waite old "Wakes proved en wly me far Stewart 99 cover ‘i’ “Domo Tina new tak o he ae CD eee {he Sugden “heNs sont He 00 ering man ert aria [eidratdowtowiessongabor doce hays today rh eel gen ying ey ing "Can Sop Me Now” exer oper at 1 ‘nl the tne te “ee orpuy sao in" usin yo, sonst yo Sn the ‘omer wih ameinduy exe ‘econ fo Aro Sci, twat anager of thee decade his enti dy spe sterner [eigen ound yeas apo that what evden go ero Re asta, vat himself the psa a he ers psd There here ch ces th people ya Tonal, bree, Stewarts mbt come up whew songs est she clans io "od The ‘Astotiopaphy” "the mont coord aac ‘te lems, Sevart tne acorn THIS ALBUM WASN'T MEANT TO BE Set imonitor tt A BREAKTHROUGH. I’M JUST DOING Secs tee WHAT | DO BEST. Te ling Bein an George Gert Ath te ‘Mouguiyae an andl ee Rod wat desing wh ack en hice maf fr aandoing is stetbaot eran fr co and Holand 1 That's te wha the di obi the comer landed Stevart2001 abu, Mana brow daring o's amazing time vealed done Do agp” and ek aie fo N° iTUNES The Birth Of =o Sis © AColossus 22555555 Soa a . ‘Stoatercosumerbeavorinabigway Below fs tefunoter FexwaheM ten Gera and BMG. The creation ofthe world's biggest music wasaremotonaltweaadforpope Kbecme an "Hemasaprentaslanat” anys Dough who! retailerscemedtohappenalmostinspite “syiwepacnmc, 1 gabe ete len ofthe record labels, but they knewa good iowivedinthedincusions ays ‘Tunes Home smote sensewome™ ine thingiwhen SteveJobsshowedittothem — ,Rarhipubursinperseain. Tevemmetoune Mclain oe ByAlex Pham ByallaccantsJobewasgracocsand charning,in avaible as. singe Univeral ought he price oe mores erie eee er) eae meeting in Cupertino, Cali, with ‘of the few ungualited success stories of Siticon Stringer head of Sony’ US. operations Wormers SUSE uname “hit wctaadopnaioeises “Steve Jobs was a ikihneioetacmeneens wemetente Se. Greqt salesman.” tentang eee Doug Morris renee helene eeneorteae Boa eng re ice nme srnelh2001 ‘ap, 2003 ue, 2008, sz oe SE iMess= =100M SS vuvaan jwenansonons @ ne a dd eto top onthe Pot cata device ryayonthe ump tat he del hema akrecaswihsehiae Te nus inhry ws Baad” Lacks “Jobs felt music companies were poorly run.” —Andy Lack itp nbs all say anther exec When hence he Tunes hs Store Wealleecopied at ont, 2008 Ae nj wee thr bt iver nd Wares, whose CEOs ade be pares peta able contingent athens ncn Torn talon ad tare ve plates sis athow hit cold eth stat ofa eth . ah iv at ae ch ae abe ithe sore Doris conceds that during tenn esse a hove Jb Morsot all ofhisagunens ith lyse yehapson, and oly beats bse hin wn ‘selling is own goodsat diferent peices, but that he waseling ours ove. He apettors thee A wk ner he cls ani changed yin thing in get hisownlabel 192005 Jb “The Frenchececed the offer” Two yeas later, Js made a similar ich during ‘which hd just merged with BMG. Jbs dda mention peice Lack remeber, an neiher ary sued he mater afer, Hefekhat mic ompnies were pony Lacksays. “He eke cold wiles negotiated with Apple for many yeas. But Would a, when You con ‘Ser theirarepowe, they were ity consti generous Thy ep ‘allel une, 201 What Is iTunes Today? The iTunes ecosystem that Apple created has become one of the world’s largest retailers and media platforms, with music playing a crucial role asa building block By Horace Deidu sistas comet sel out muse ean at beeskeven” and as eae tition usnssn afew yeas That bigger thal of ape wasin 2009 rey Toe necc pen ther eyeing dees bane Moe content nae device 63 billion ‘esse andmore device crete moe demand or content items have ‘cote Apes ioe esonhintpion i ‘Soecltocnngevitur ele eared 23 billion esses oe ‘sth cbt pa cosined with he Phone andiPd $33 billion pa: been $20 billion in transactions wit ner said content owners, $i Ge TRieetetn ode booncines sen sorb ingorconling The mon sinsinaaceis te tresimeta rig Inthecaneofmis pcnghasbosn aman {ater fgtin wept oto The con emi eo enkenaonang pan srt aps ple dost etic heseling pie ofthe proitsand here det CSnuerncln bee primey cbigertiecer tomer" There apple ncuron ae tba ecaing nish he common Sees a ee iW) = ‘hath exponent pwn oneal apps ‘other retailer ‘Sota Apples Taner reporting cementiee Those paymentstocontent ones ae what el ‘he ccosem around Ape Aces abe ao rerequiedtopaytolcnse the "Madero? 5 {Padre tademarCotencownee st ony lepton commiin reach le Ae ‘pendreow of enable the unacto ene . {heed eer) operating ode nded ‘Apple's own Ings metiwhehe CDs DVDs tic Sortware [pone piely ic aoa tan cate tittenne Soyo eos et when es eam and “ transport oss ar aed orto Apple ery, Sp deeper ogy ado ghey armors (Sth che" ITUNES GROSS REVENUES BY MEDIA TYPE 2005-2013 Whe consideringthe Fur evoltnf he ner ore the par ewan show th vat ‘urmeia ypesre-cmergingnierme nse tie we be a ‘ode Ate ted aru let ea SE Tabet ico were steno ny mae ‘changes TVabowsané movefllowed Ape then Spear andencet rte png bch ‘etl guy it stew pice pins cen 99 ental thero!) Boum nating ‘Sette oberon They we enear- ‘aed ete, dcoredand sth sae ‘Apps however ought ex aoa etre” ‘They wee paeatethey caudbeabsapported eh severa ad twos sul; thy cauldbe ‘eteedand thse motored the developer ‘hoyhadthe game center they alowed riven ‘chases nthisere ap became ear core” Chatboeited he nr andthe eraper rte snoner what ul happen ith rer comers enacn med ormate Phat es io die hatrnsaryssa technol ty bt Itvecncate tat someting wong thse esis pobeIFideshappen, ts pple taisbes osteitis malet happen Notbecseits eeenginersormarhte, bur becase haste ‘Manes sete oe sta sbpfrnew meinem ‘sre thatiewll hare an Tune ste aed este ne on = 7 " : : ‘in ay — The most popular media formats correspond tothe popularity (ofthe device thot re ured ‘consume them. mere, | Med De b> SRE EES. | Video success wit depend onthe woth asics. | syecess ofa suitable video player. - i |% my LEADING ™*™ After years as the only meaningful game in town, iTunesis facing the kind of game- changing competitionit once presented to ‘Tower and HMV. Can Apple innovate fast ‘enough? AndisiRadio the answer By Glenn Peoples ‘what can pple d fran encorein the msc ‘creme ad estar the aie tiewithihe Tunes Mai Sore rng the download grow ils and more consumers ml eommniting to ‘special ater Apple ced smarphone momenta Samm ‘untae acm ‘eon desta tv Jabs A few very ple mises ak Agle'tleas ofa at baked apap “hae added tothe mur ‘work appl electvaly rented ysl mato putes Oral nea te thing tees cae ‘wce/stware/ervce econ hat ed ue Apple no sme The cepa ain eegtaon wth ced aerate temetada ence atone libel oc desiber akan even ‘Serie orgs dnd uh ee Apple isinown The seric woul geerte ven oats incemeotl downloads but also arin, ot ly dagh isiads rail advertsing vin Rights older partite “The We raises’ estes asst old els each, Sours say lab ar npoising global cena that wil expand he ‘Tunes resin 19 counties but few of thm have a terme Goopson on pr what pplecoul ving to mare Pando, Pa ple so neds ager ianvaionsinhaswate an ft. sungin recent years. amsing’s shar ofthe lbal smartphone mnt rete sin owrrqntersor fom 43s inst tito pplehad lead a smartphone pasar 3070 tou The wofactrshlped rg down agp’ sare pce {ior S400 for ahighotSosin September tert more ‘han S69 tllon of maneteaptalaton The machines an moda case concer Apple Ingtbesecon ober (997.201 ‘of consumers who by apes othe ‘nj sbusedon new pope ring the walled pren that ‘abate Avotor person win the sume ‘allan nt ttc eer Tithe thi year One pole ‘id erty ng manera Inthe walled garden asetevly ‘inthe pas. 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