Kobalt Music Group is an independent rights management and publishing company. Founded in 2000 by CEO Willard Ahdritz, Kobalt acts primarily as an administrative publishing company, not owning any copyrights. Also offering label services and neighboring rights, the company has developed an online portal to provide royalty income and activity to artists and allow them to manage their rights and royalties directly. Wired reported in 2015 that Kobalt was "the top independent music publisher in the UK and the second overall (to Sony/ATV) in the US," with around 600,000 songs and 8,000 artists in its catalogue, including Massive Attack, Father John Misty, Trent Reznor, Gwen Stefani, Phoenix, Prince, Sonic Youth, Ellie Goulding, Paul McCartney, Bob Marley, VerseChorusVerse, John Denver, Tiesto, Bob Dylan, and Kelly Clarkson. Kobalt owned 17.3% of the top 100 radio songs in the US in of 2015, ranking it third after Universal. With headquarters in New York, Kobalt also has offices in cities such as London, Los Angeles, Nashville, Atlanta, Berlin, Stockholm, Miami, Hong Kong, and Sydney. Kobalt paid $29.8 million for the acquisition of Fintage House's Music Companies.
Video Kobalt Music Group
History
Founding and early years (2000-11)
Kobalt Music Group was founded in 2000 in New York City, with founder Willard Ahdritz, a native of Sweden, taking on the role of CEO. Together with Klas Lunding Ahdritz had previously launched Telegram Publishing in Stockholm in 1988. Kobalt's initial business model focused on collecting and distributing royalties for artists, with the stated goal of ensuring artists were paid appropriately and promptly. In 2005 the company debuted its Kobalt Label Services Portal, an online portal for artists to track and manage their own portfolios.
Kobalt Music Group won Independent Music Publisher of the Year at the 2009 Music Week Awards, winning the following year as well. Kobalt added a neighboring rights division in 2011. In December 2011, Kobalt bought Artists Without a Label (AWAL), a digital distribution and label services company. Kobalt as a result gained access to AWAL's network of digital retail partners, which among other companies included iTunes, Amazon, Spotify, eMusic, Rhapsody, 7Digital, Beatport, Deezer, and Nokia. The acquisition also allowed Kobalt to begin supplying advanced data analytics to clients.
Expansion and new services (2012-14)
After the AWAL acquisition, Kobalt formed the label services division Kobalt Label Services in 2012. In July 2012, Kobalt Music Group signed a deal with MPL Communications to exclusively provide administrative services to MPL in "the world outside North America, the U.K. and Ireland." The catalog included 1,200 songwriters such as Hugh Masekela and Paul McCartney, with classic songs such as "Baby It's Cold Outside" and "Luck Be A Lady." Prince signed a deal in May 2013 to market and distribute his work with Kobalt, with his rights over his masters left intact.
Recent developments (2014-present)
In 2014 Kobalt purchased the American Mechanical Rights Agency (AMRA), a collection agency. Kobalt announced that it was preparing to expand into the Latin American market in April 2014, and that June the company raised USD $140 million in funding to "accelerate rapid growth" and that year Kobalt also raised USD $66 million from investors such as MSD Capital.
In February 2015, Google Ventures in London made Kobalt its inaugural investment, with Google Ventures' president explaining that Kobalt was "changing the way artists are treated in the music business, particularly when it comes to providing trust and transparency and compensating creators for their work." Google Ventures (with MSD Capital once again investing) raised USD $60 million for the company in a Series C round of financing, which Kobalt announced would largely be used to develop their technology and open new offices in Miami, Brazil, and South East Asia. This brought the total of equity raised by Kobalt to $126 million. At that point, Kobalt had also invested $100 million of the initial $153 million it had raised to "help finance a second strand of its business - label services where Kobalt either buys part or all of an artists' rights to help collect royalties on their behalf."
Wired reported in May 2015 that Kobalt was "the top independent music publisher in the UK and the second overall (to Sony/ATV) in the US," with around 8,000 artists and 600,000 songs in their catalogue. At the time, Kobalt continued to collect royalty money directly from services such as Spotify, iTunes, YouTube, and various collection agencies.
In December 2017, Kobalt acquired SONGS for an estimated $150 million.
With headquarters in London, Kobalt currently has offices in cities such as New York, Los Angeles, Nashville, Atlanta, Berlin, Stockholm, Miami, Hong Kong, and Sydney.
Maps Kobalt Music Group
Technology
Kobalt has developed a number of technologies to increase its own efficiency at tracking and collecting royalties. In 2005 the company debuted its Kobalt Portal, an online portal for artists to track and manage their own portfolios. In 2014, Kobalt introduced ProKlaim, a YouTube integration that by 2014 had significantly increased artist revenue on the platform. ProKlaim serves as an "advanced detection platform" by integrating with YouTube's own music detection technology. As of 2015, Kobalt had started describing their backend technology as "KORE." KORE manages rights, and tracks, collects and pay royalties across disparate markets, with the collected data accessible through the Kobalt Portal.
Divisions
Current catalogue
Kobalt currently has licensing deals with around 8,000 artists and 600 publishing companies, representing a catalogue that totals around 600,000 songs.
Selected publishers
The following publishers are currently signed to Kobalt Music Group:
Selected artists
The following artists have a significant portion of their catalog, if not all, currently overseen by Kobalt Music Group:
- Kobalt Neighboring Rights
- Kobalt Label Services
Awards and nominations
The following is an incomplete list of awards won by Kobalt Music Group:
- 2009: Music Week Awards - Independent Music Publisher of the Year
- 2010: Music Week Awards - Independent Music Publisher of the Year
- 2011: Music Week Awards - Independent Music Publisher of the Year
- 2012: Music Week Awards - Independent Music Publisher of the Year
- 2013: Music Week Awards - Independent Music Publisher of the Year
- 2014: Music Week Awards - Independent Music Publisher of the Year
- 2015: Music Week Awards - Independent Music Publisher of the Year
- 2016: Music Week Awards - Independent Music Publisher of the Year
- 2017: Music Week Awards - Publisher of the Year
Further reading
- "Kobalt Expands into Label Services With Major Acquisition". MusicRow. 23 January 2012.
- "Kobalt Strikes Australasian Sub-Pub Deal With Disney". Billboard. 5 March 2013.
- "Michael Dell Takes Kobalt Stake, New Joint Venture Signs Ex-Village Person". Billboard. 14 March 2014.
- "Kobalt changed the rules of the music industry using data - and saved it". Wired. 1 May 2015.
- "Kobalt secures $60m of Google-linked funding". The Telegraph. 27 February 2015.
- "Going to the Ends of the Earth to Get the Most Out of Music". New York Times. 3 June 2015.
See also
- List of record labels
- Kobalt Label Services
- Independent Music Companies Association
References
External links
- KobaltMusic.com
Source of the article : Wikipedia
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