Kobalt Music Group
Kobalt has grown to become one of the world's largest independent music publishers from a start-up in 2001 by virtue of its home grown technology and artist friendly approach. Kobalt has again experienced strong revenue growth in the last year (60%) and has won many new clients of world standing. Over 96% of Kobalt's customers have decided to extend or maintain their deals with Kobalt on renewal demonstrating the high level of satisfaction experienced by clients and providing great word of mouth buzz. Kobalt has also been the biggest indie on a number of charts around the world- Kobalt reached 5.0 % for 2007 in the UK chart market share taking 25% of the indie market. In the US, the company achieved a 4.6% market share on the Q2 2008 airplay chart.
Kobalt's significant US investment programme in offices in Los Angeles (Sunset Blvd), New York (Time Square) and Nashville deliver today very good results reflected in the number and value of new deals signed which management expect to help accelerate the long term growth of the group.
Kobalt continue to expand in the US which is the most important market in the world both for domestic music and also for music played around the world which originated from US writers.
Kobalt have also developed new services for its clients. In June 2008 the company launched a revolutionary new portal including on line advances where clients can get advances using their on line pipeline facility. The response has been very satisfactory.
To finance Kobalt’s plans to further expand internationally, as well as help fund sizeable pipeline advances and the roll out of new services for music rights holders, Balderton Capital (Ex. Benchmark Capital Europe), one of the largest venture firms in Europe, has made a significant capital investment in the company in January 2008, receiving a minority stake in Kobalt. Balderton Capital joins SPARK as a key institutional investor in Kobalt. Additionally, Tim Bunting, partner at Balderton Capital and ex-partner at Goldman Sachs, joined the Kobalt executive board.
Across the group as a whole, the number and value of new deals signed has continued to increase significantly. Kobalt has a strong 2008 release schedule which will drive revenue and net publisher share (NPS) during the next financial year. In particular, several internationally successful bands and artists have recognised the advantages of becoming Kobalt clients including Kid Rock, private equity backed clients like Crosstown and successful writers like Ryan Tedder. Among many of Kobalt's successful releases in 2008 so far are Leona Lewis’ new album "Spirit" where Kobalt has four writers represented and Kid Rock's "Rock N Roll Jesus"- these successes should help Kobalt to continue its growth in 2008/9.
Looking forward, the music publishing industry starts to recognise Kobalt’s success and its thinking starts to have an impact on the whole industry. The Kobalt web site has been significantly updated as a window to the music world. Please see www.kobaltmusic.com for more information.
30/06/2008 - Kobalt signs global admin deal with Getty