Based in New York City, KOCH Entertainment was founded in May 1999 as the new umbrella company for KOCH's North American record labels. KOCH's American artist and recording activities began with the formation of KOCH International Classics in 1990 and subsequently KOCH Jazz in 1992. KOCH Entertainment's flagship label, KOCH Records, commenced operations in 1994. These record labels were formally united under the KOCH Entertainment umbrella when Velvel Records was acquired from its founder Walter Yetnikoff in May 1999. The Velvel acquisition facilitated an enlarged recording operation by providing additional infrastructure, key executives and a strong international network outside the existing KOCH territories.

KOCH Entertainment has quickly grown to become North America's largest independently-distributed record company and is the fastest-growing independent record label in the U.S. KOCH Entertainment's record labels cover all musical genres from adult-contemporary to rock, urban to country, children's to classical. Its bestselling franchises, WWF (4 million albums sold) and Pokemon (3 million albums sold), have been successfully complemented by a growing roster of both established artists and developing talent. KOCH recently concluded a long-term exclusive license agreement with Death Row Records and thereby secured a pre-eminent rap catalog. KOCH Entertainment's rapid expansion is reflected in its growing number of Billboard Top 200 albums: 17 in 2001, 7 in 2000, 5 in 1999 and 2 in 1998. KOCH Entertainment was nominated Medium Entertainment Supplier of the Year 2002 by the National Association of Recording Merchandisers (NARM).

KOCH Entertainment has assembled a strong executive team with both major and independent
record label experience and has built a dedicated staff of 40 professionals. By leveraging
its established distribution and marketing capabilities, KOCH Entertainment has been
able to rapidly capitalize on the widening gap between major and independent labels
by catering to both established talent, production companies and franchises, as
well as emerging artists. KOCH Entertainment has strategically positioned itself
to successfully develop and market artists which do not (or no longer want to)
fit the major-label mold, but who are also beyond the operating capabilities
of smaller independents.