simon cowell x factor
Simon Cowell's profits slump by a THIRD as 'songs aren't selling as well'
Profits at his company have slumped by a third in the last year, from £27m to £18m
By Nicola Methven

Oh dear – there’s some ho-ho-horrible news this Christmas for Simon Cowell .

Profits at his company have slumped by a third in the last year, from £27m to £18m.

Now, we realise this doesn’t exactly put him on the breadline. He won’t be needing to tighten the belt on his (high-waisted) trousers just yet.

But it does rather suggest that things aren’t going too well. Or, at the very least, as well as they were before.

Cowell’s company Simco Ltd has blamed “lower licencing income” from shows including Britain’s Got Talent, X Factor and America’s Got Talent, and claimed the 32% drop in profit is a result of “the phasing of record releases”.

In plain English we think this translates to – our songs aren’t selling as well as they used to.

Overall, the last 12 months for the TV and music mogul haven’t been too great.

Last year’s X Factor winner, Louisa Johnson, had the lowest-selling winner’s single in the show’s history, peaking at No 9 in the UK top 40.

And the official accounts come as the X Factor final suffered its worst ratings ever earlier this month - when five million more viewers tuned in watch the Strictly Come Dancing semi-final on BBC1.

The show has lost 10 million viewers since more than 17m people watched Matt Cardle triumph in 2010 with just 7m tuning in two weeks ago to see Matt Terry take the crown.

Simco’s turnover - or total takings before costs - was down more than £7m, to £40m, with earnings dropping in both the UK and US.

The upshot is that dividend payments to parent company Syco, which is ultimately owned by Sony, dropped by more than £10m in a year, to £19m.

All a bit painful. Still, he’ll soon be able to forget all about it while sunning himself on his traditional festive jaunt to Barbados. Any minute now.

The story of Phillip Phillips

I don’t know if you guys know Phillip Phillips - he sang those songs “home” and “Gone, gone, gone”. I don’t know him that well but I like his songs. He was the winner of American idol and has since then got into a massive legal battle with 19 entertainment who produce the show and run the record label he is signed to as a result of winning (so like what Simon Cowell/Syco is to the X-factor/5H). 

I know we are talking about American idol here and not X-factor, but they are basically the same thing and this whole thing has everything to do with Fifth Harmony. In fact, the two shows are so similar that Simon Fuller (owner of American Idol) actually tried to sue Simon Cowell by claiming the copyrights to the X-Factor format, and as a result, Fuller is actually now a partner in the X-factor. Basically Simon Cowell worked with Simon Fuller on American Idol but then sneakily fucked off to produce his own show that did exactly the same thing lol. No wonder Fuller tried to sue him!

Anyway, in January 2015, Phillips started a legal battle to basically get out of his deal with his management. His management company was the same as his record company - all run by 19 entertainment. So basically, Simon fuller had set it up so that he can control and reap the benefits from everything in the winning act’s career (similar to what simon has done to 5H). Apparently 19 entertainment  “Manipulated” him into accepting jobs that didn’t benefit him and his lawyer said the contracts were "oppressive, fatally conflicted.“ . 

Some of the ridiculous agreements included being forced to perform for no money and literally not even knowing the title of his album before it was publicly announced!!!!. He claimed that 19 entertainment repeatedly withheld information regarding his career (I think we all know 5H have been in similar situations of being kept in the dark regarding their careers…)

Basically, before phillips actually won the show, he signed a contract with 19 entertainment that allowed them to govern his management, merchandising, recording and publishing. You can assume a similar deal with 5H - From what I understand, the X-factor also makes contestants sign with Syco before the show finishes, making them remain with syco for 3 months after the show finishes… And during those 3 months, Syco/Sony can decide whether they want to exercise their option of signing the act to a full-on record deal. So what I’m saying is that all the bullshit reality TV style contractual stuff that they are able to get away with in that format, probably still applies when they go into the full record deal. These things are set up so that the labels get a lot of passive rights (where syco get a percentage of everything the x-factor contestants do for years) and active rights (where they also get to control everything about the artists’ careers so that the label can benefit the most). Syco/sony still retain a ridiculous amount of control over the artist’s career - probably way more than a normal record deal.

Phillips tried to use the Californian Talent Agencies Act to void his contract with 19 entertainment. (It’s quite a technical thing thats not that interesting). 19 entertainment then tried to sue Phillips’ manager, basically for turning against them and ‘manipulating’ him into trying to get out of his contract. Then, also, in summer 2016 (after 19 entertainment went bankrupt lol) 19 entertainment tried to sue Phillips for millions because he wasn’t carrying on with his contractual obligations to them while the whole legal battle was going on. The latest article I saw on the story from the end of last year was predicting that the label would not been able to sue him because of their bankruptcy. However… I only skimmed through the articles so if you find some more updates on the story please let me know. 

The details aren’t really that important - the important points are that these reality TV shows that artists sign record deals off of are notoriously horrible. The contracts give the label active rights to control almost every aspect of the artist’s career. And even when Phillips tried to get out of his management contract, his new manager was hit with a poaching lawsuit, and he himself was hit with a 6 million dollar lawsuit. It literally took actual bankruptcy of the company for him to not get sued in this process. Usually getting into a legal battle with a label is suicidal - they just have so much more power, money and resources, and have usually covered their backs in iron-clad contracts. i think another really important point to take from this is what Phillips said about how his label treated him - that they repeatedly withheld information from him regarding his own career - that he didn’t even know his album title before the public did. i think this stuff is particularly relevant to 5H. The execs are pulling the strings and the artists are the puppets. At times the girls may know just as much as we do regarding their futures. I’m sure as a coping mechanism they’ve learnt to just roll with it and pick their battles.

Anyway I’m not sure on the latest details of the legal battle… I assume he legitimately managed to get out of his management contract in the end, but here is his twitter is you want to support him.

I have been a researching fool, since my last theory. I will tell you now, I got some stuff wrong in the last one, mostly about Charlie Walk. I will address that in a later post. Right now, I want to concentrate on the connections I have found, that tell me a lot about the people who have authority over all of the girls. It’s a bit complicated, but I’ll keep it as simple as possible………..

Simon Cowell created X-Factor. He also created his own record label and T.V. company to produce his shows and sign the acts from those shows, Syco Music, and Syco T.V..

Simon has always worked closely with Sony Music, to distribute his content world wide. In 2011, he made a deal with Sony Music Entertainment, on a 50/50 partnership, with his companies and Sony Music. They named this new partnership venture, Syco Entertainment. Now, everything produced through Syco is split 50/50 between Simon and Sony Music.

When Fifth Harmony took third place on X-Factor, they were signed to a joint deal, via Syco Entertainment, to Syco music and Epic records. Epic Records is owned by Sony Music. 5H signed a U.S. deal, which gave Epic creative control.

So, Simon Cowell owns Syco Music, which is part of Syco Entertainment, which is in a 50/50 partnership with Sony Music, which owns Epic Records. Sony Music also owns Columbia Records and RCA records, among others.

L.A. Reid is the CEO of Epic Records. He and Simon have both worked closely with Charlie Walk. Charlie used to be one of the big wigs over at Columbia Records, where he worked closely with Destiny’s Child, and Beyoncé, among others.

With the success he had at Columbia, Sony tapped Charlie to be the President of Epic records. When he left Epic for Republic Records, is when L.A. got tapped to take his place as President of Epic.

When Charlie made the move to Republic, he was the Executive Vice President. The duties associated with that title were marketing, promotion, and P.R., for many artists under the mantle of Republic Records Group, which is many labels under the bigger umbrella of Universal Music Group. One of those labels is Big Machine Records, which is Taylor Swift’s Label. Charlie Walk actually spearheaded her “Set It Off” campaign. Another one of those Labels, is Island Records, which is Shawn Mendes’ Label.

Another of the Labels attached to Universal Music Group, is Interscope Records. Interscope bought out Bad Boy Records from Warner Music Group several years ago. Bad Boy Records and Interscope Records are Machine Gun Kelly’s Labels. As of 2015, BBR made a deal with Epic to operate as an Imprint of Epic Records, so Epic is one of MGK’s Labels also.

In May of 2014, John Janick became the Chairman and CEO of Interscope Records. John Janick also founded the record label, Fueled By Ramen, in 1996. Fueled By Ramen is an independent record label that is distributed by Atlantic Records. Atlantic Records is owned by Warner Music Group.

Janick and his Label FBR made the distribution deal with Atlantic through Independent Label Group. Independent Label Group is owned by Warner Music Group, and was established by ROGER GOLD.

Roger gold, Camila’s manager, was a prominent figure with Warner Music from 1996-2005. In 2012, he co-founded 300 Entertainment, with a few others from WMG. 300 Entertainment, which operates under Atlantic Records, is the Label of Fetty Wap, which collabed with 5H on “All In My Head (flex)”. Atlantic Records is also the Label of Ty Dolla Sign, who won awards with the girls for “Work From Home”.

See how everyone and everything is connected. Dina LaPolt is no different. Before she became an Entertainment Lawyer, she was part of the Music Industry. Once she became an Attorney, she worked with many under Sony Music. She is the Attorney for the Group, Fifth Harmony, not the girls personally. Plus, her wife is the head of Adult Content over at RCA, which is owned by Sony Music.

By the way, before Maverick became a Management Company, they were a record label, that operated under Warner Music, where Roger Gold worked. Plus, Roger serve(d) on the same Advisory Board with Charlie Walk over at DesiHits.

If you want to connect all the dots, like I have, you can come to your own conclusions. My conclusion, the girls can’t trust anyone who has any kind of power or authority over them. All of them care more about money than anything else. 

On a happier note……………………

HAPPY NEW YEAR!!! I hope you all have a wonderful and joyous 2017!!!!!!!!