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{{Short description|International music company}}
{{redir|BMG}}
{{Refimprove|date=January 2010}}
{{Use American English|date=January 2018}}
{{advert|date=March 2012}}
{{Use mdy dates|date=January 2018}}
{{Infobox company
{{Infobox company
| name = BMG
| name = BMG Rights Management GmbH
| logo = [[File:BMG official logo.jpg|250px|]]
| logo = BMG Rights Management logo.svg
| logo_size = 150px
| caption =
| logo_alt = official logo of BMG
| type =
| genre =
| logo_caption =
| image = Quartier 205 Berlin-Mitte.jpg
| fate =
| type = [[Division (business)|Division]]
| predecessor =
| industry = [[Music industry|Music]]
| successor =
| predecessors = {{ubl|[[Bertelsmann Music Group]]|[[Sony BMG]]}}
| foundation = Berlin, Germany, ({{Start date|2008|10}})
| founded = {{Start date and age|2008|10}} in [[Berlin]], Germany
| founder =
| hq_location_city = [[Berlin]]
| defunct =
| hq_location_country = Germany
| location_city = Berlin
| num_locations = 20 countries
| location_country = Germany
| num_locations_year = 2020
| location =
| area_served = Worldwide
| locations =
| key_people = {{ublist|Thomas Coesfeld ([[Chief executive officer|CEO]])|Mathis Wolter ([[Chief financial officer|CFO]])|Ben Katovsky ([[Chief operating officer|COO]])}}
| area_served =
| services = [[Collective rights management|Music rights management]]
| key_people = Hartwig Masuch (CEO) <br/> Max Dressendörfer (CFO) <br/> Kay Krafft (CIO) <br/> Steven Moran (COO) <br/> Laurent Hubert (US) <br/> Richard Blackstone (CCO US) <br/> John Dobinson (COO Europe)<br/> Fred Casimir (Europe) <br/> Alexi Cory-Smith (UK) <br/> Maik Pallasch (Germany) <br/> Stéphane Berlow (France) <br/> Mary Ann Slim (Ireland) <br/> Frank Bruens (Benelux) <br/> Dino Stewart (Italy) <br/> Javier Sanz (Spain) <br/> Sanken Sandqvist (Scandinavia)
| revenue = {{increase}} [[Euro|€]]602 million
| industry = [[Music industry|Music]]
| revenue_year = 2020
| products =
| profit = {{increase}} €137 million
| production =
| profit_year = 2020
| services = Music rights management
| revenue =
| num_employees = 974
| num_employees_year = 2020
| operating_income =
| parent = [[Bertelsmann]]
| net_income =
| website = {{URL|bmg.com}}
| aum =
| footnotes = BMG's main distributor is [[Universal Music Group]] for physical media marketing only,<ref name="bmguniversal">{{cite press release|url=https://www.universalmusic.com/bmg-forms-alliance-with-universal-music-group/|title=BMG Forms Alliance With Universal Music Group|date=October 19, 2023|website=Universal Media Group}}</ref> with digital distribution duties being transferred to BMG's own systems. Additional distributors, depending on artist and division, are [[Sony Music]], [[RED Distribution]], [[PIAS Group]], [[SPV GmbH]], Good2Go, [[Demon Music Group]], [[Rough Trade Records|Rough Trade]] and others.
| assets =
| image_caption = Quartier 205 in [[Berlin Mitte]], where the headquarters of BMG are located (2018)
| equity =
| trade_name = Bertelsmann Music Group (2009–present)
| owner =
| num_employees =
| parent = [[Bertelsmann AG]], [[Kohlberg Kravis Roberts|KKR]]
| divisions =
| subsid =
| homepage = {{Official website|http://www.bmg.com/}}
| footnotes =
| intl = yes
}}
}}
'''BMG Rights Management GmbH''' (also known simply as '''BMG''') is an international [[music company]] based in [[Berlin]], Germany.<ref name=":8">{{Cite web|url=http://www.mediabiz.de/musik/firmen/bmg/91970|title=Musikverlag BMG|website=mediabiz.de|language=de|access-date=January 10, 2018}}</ref> It combines the activities of a [[Music publisher (popular music)|music publisher]] and a [[record label]].<ref name=":0">{{Cite news|title=Bertelsmann bietet Musikern neuen Service|first=Arndt|last=Ohler|date=October 9, 2008|newspaper=Financial Times Deutschland|page=5|language=de}}</ref><ref name=":2">{{Cite news|title=Bertelsmann belebt BMG|first=David|last=Hein|date=October 16, 2008|newspaper=Horizont|page=6|language=de}}</ref>


BMG was founded in October 2008 after [[Bertelsmann]] sold its stake in [[Sony BMG]] to [[Sony]].<ref>{{Cite web|url=https://www.billboard.com/biz/articles/news/global/1302614/bertelsmann-unveils-bmg-rights-management|title=Bertelsmann Unveils BMG Rights Management|first=Wolfgang|last=Spahr|date=October 14, 2008|website=billboard.com|access-date=January 10, 2018}}</ref> From 2009 to 2013, the investment firm [[Kohlberg Kravis Roberts|KKR]] held 51% of the company, which became one of the world's largest music publishers during that time.<ref>{{Cite news|title=Bertelsmann ist die Musik wieder wichtig|date=March 2, 2013|newspaper=Die Welt|page=13|language=de}}</ref><ref>{{Cite web|url=https://www.heise.de/newsticker/meldung/Bertelsmann-holt-die-Musik-zurueck-in-den-Konzern-1814868.html|title=Bertelsmann holt die Musik zurück in den Konzern|first=Volker|last=Briegleb|date=March 1, 2013|website=heise.de|language=de|access-date=January 10, 2018}}</ref> BMG is 100% owned by Bertelsmann and one of the group's eight business divisions.<ref name=":5">{{Cite news|title=Bertelsmann sortiert sich neu|first=Kai-Hinrich|last=Renner|date=March 23, 2016|newspaper=Handelsblatt|page=24|language=de}}</ref>
'''BMG''' is an international group of music companies focused on the management of music rights and a joint venture between the international media company [[Bertelsmann]] and the global private equity firm [[Kohlberg Kravis Roberts|KKR]]. The company's head office is in Berlin, but it also has regional offices New York, Nashville, Los Angeles, London, Madrid, Milan, Paris, Munich, Stockholm, Dublin and Hilversum in the Netherlands.


==Company Profile==
==History==
===Music at Bertelsmann===
BMG is the fourth-largest music publisher in the world, based on revenue.<ref>http://www.billboard.biz/bbbiz/others/billboard-power-100-hartwig-masuch-1006004962.story</ref> The company was first announced in late 2008 shortly following Bertelsmann's sale of its music interests to [[Sony Music Entertainment]], and first opened offices in January 2009.<ref>{{cite web|url=http://www.billboard.biz/bbbiz/content_display/industry/e3ie0a4ec066acfa6638afa9df3f021a6b3?imw=Y|title=Bertelsmann Unveils BMG Rights Management |last=Spahr |first=Wolfgang |date=October 14, 2008|work=''[[Billboard (magazine)|Billboard]]'' |publisher=Nielsen Business Media, Inc. |accessdate=2009-12-12}}</ref> BMG focuses on the competent and transparent administration and management of musical [[copyright]]s and acts as broker between the creative community and the professional users in times of multiple digital exploitation and distribution. Since its founding, the company has completed a number of prominent signings and now represents the rights to around one million songs. It has acquired major independent publishers such as Crosstown Songs, Cherry Lane Music Publishing, Stage Three Music, Evergreen Copyrights, Chrysalis Music Group,<ref>{{cite news| url=http://dealbook.blogs.nytimes.com/2010/11/04/bmg-and-warner-music-said-to-eye-chrysalis/ | work=The New York Times | title=BMG and Warner Music Said to Weigh Bid for Chrysalis | date=2010-11-04}}</ref> Bug Music<ref>{{cite news| url=http://www.billboard.biz/bbbiz/industry/publishing/bmg-rights-management-to-purchase-bug-music-1005348352.story | work=Billboard | title=BMG Rights Management to Purchase Bug Music | date=2011-09-12}}</ref> and R2M.<ref>{{cite news| url=http://www.billboard.biz/bbbiz/industry/publishing/bmg-rights-management-purchases-r2m-music-1006339752.story | work=Billboard | title=BMG Rights Management Purchases R2M Music Lux SARL Catalog | date=2012-03-02}}</ref>
{{Main article|Bertelsmann Music Group}}
[[File:Bertelsmann_Music_Group_Logo.svg|left]]
In the 1950s, Bertelsmann entered the music business when it added music to its book club.<ref>{{Cite book|title=175 Years of Bertelsmann: The Legacy for Our Future|date=2010|publisher=C. Bertelsmann Verlag|location=Munich|page=27|isbn=978-3-641-05407-6}}</ref> [[Ariola Records|Ariola]], a record label, was launched and [[Sonopress]], a pressing plant, was established.<ref>{{Cite news|title=Bertelsmann feiert: Heute wird der Medienkonzern 175 Jahre alt|date=July 1, 2010|newspaper=Westfalen-Blatt|language=de}}</ref><ref>{{Cite news|title=Superstar und Freund der Mohns|date=December 23, 2014|newspaper=Neue Westfälische|page=3|language=de}}</ref> In 1975, Ariola opened an office in the United States.<ref>{{Cite news|title=Von der Welt lernen: Erfolg durch Menschlichkeit und Freiheit|first=Reinhard|last=Mohn|date=2008|publisher=C. Bertelsmann Verlag|location=Munich|isbn=978-3-570-01110-2|language=de}}</ref> Bertelsmann acquired [[Arista Records]] in 1979 and RCA Records in 1985, thereby becoming one of the world's largest music companies.<ref>{{Cite news|title=Musikkonzerne auf Chancensuche|date=October 14, 2000|newspaper=Tiroler Tageszeitung|language=de}}</ref> Its various subsidiaries were brought together in 1987 to form [[Bertelsmann Music Group]] (BMG), which did business in a number of genres, including [[Folk music|folk]], [[Pop music|pop]], and in particular [[classical music]].<ref>{{Cite book|title=175 Years of Bertelsmann: The Legacy for Our Future|date=2010|publisher=C. Bertelsmann Verlag|location=Munich|page=48|isbn=978-3-641-05407-6}}</ref>


In response to declining sales in the overall music market, Bertelsmann agreed to merge its record label interests with [[Sony]] in 2003; the company was called Sony BMG.<ref>{{Cite news|title=Bertelsmann und Sony machen gemeinsam Musik|date=November 7, 2003|newspaper=Der Tagesspiegel|page=21|language=de}}</ref><ref>{{Cite news|title=Elefantenhochzeit in der Musikbranche|date=December 15, 2003|newspaper=Wiener Zeitung|page=14|language=de}}</ref> Furthermore, in 2006, Bertelsmann sold its subsidiary BMG Music Publishing to [[Universal Music Group]].<ref>{{Cite news|title=Musikverlag BMG geht an Vivendi|date=September 7, 2006|newspaper=Wiener Zeitung|page=26|language=de}}</ref><ref>{{Cite news|title=Bertelsmann treibt Schuldenabbau voran|date=December 28, 2006|newspaper=Handelsblatt|page=18|language=de}}</ref> Having reached the conclusion that established music publishing companies and record labels were not appropriate for an increasingly digital music business, Bertelsmann sold its stake in the Sony BMG joint venture in 2008.<ref>{{Cite news|title=Bertelsmann steigt bei Sony BMG aus|first=Brenda|last=Strohmaier|date=August 6, 2008|newspaper=Die Welt|page=12|language=de}}</ref> The company was subsequently renamed [[Sony Music Entertainment]].<ref>{{Cite web|url=http://www.dw.com/de/bertelsmann-überlässt-sein-musikgeschäft-sony/a-3539837|title=Bertelsmann überlässt sein Musikgeschäft Sony|date=August 5, 2008|website=dw.com|language=de|access-date=January 10, 2018}}</ref>
As a service provider, BMG supports songwriters, recording artists and producers to administer, manage, develop, market and exploit their [[copyright]]s globally. The company serves artists of all genres, nationalities and levels of development and devotes a substantial percentage of its funds each year to signing and developing new talent.<ref>http://www.midem.german-pavilion.com/content/en/exhibitors/exhibitors_detail.php?exhibitor_id=26622</ref>
BMG contributes its licensing know-how, a diverse roster of artists and songwriters, an established brand name and a proficient management strategy to the joint venture. [[Kohlberg Kravis Roberts|KKR]] holds 51% of the company, the remaining 49% reside with Bertelsmann.


===Launch of the new BMG===
Hartwig Masuch, BMG CEO, has demonstrated that his business strategy of becoming a European service provider in the music world has proven to be a realistic approach. With its' business model, BMG has quickly acquired national stars such as [[Sascha Schmitz|Sasha]], [[Nena]], [[Peter Fox (musician)|Peter Fox]] and [[2raumwohnung|Zweiraumwohnung]].
In October 2008, Bertelsmann launched the new BMG with a small portfolio of recorded music rights of around 200 artists it retained from Sony BMG.<ref name=":0" /><ref name=":7">{{Cite news|title=Bertelsmann setzt auf Vermarktung von Rechten|publisher=Schweizerische Depeschenagentur|date=October 14, 2008|language=de}}</ref> It declared it would pursue a business model focused on fairness, service and transparency.<ref name=":2" /><ref>{{Cite news|title=Der Künstler ist König: Bertelsmann steigt mit neuer Firma wieder ins Musikgeschäft ein|first=Martin|last=Krause|date=October 15, 2008|newspaper=Neue Westfälische|language=de}}</ref>
Especially in 2011 and 2012, a great variety of young new international songwriters, artists and producers with promising potential has been added to the roster of BMG. The company provides the opportunity for their creative development while taking over the management of copyrights.
"There is lots more to come," said [[BMG Chrysalis UK]] senior vice-president Alexi Cory-Smith "The music business has changed. Writers want a new alternative. BMG Chrysalis is proving it has the resources, the technology and the creative vision to provide that alternative."<ref>http://www.musicweek.com/story.asp?storycode=1048727</ref>


The launch of the new BMG came amidst the 2008 financial crisis, and within two weeks of the collapse of [[Lehman Brothers]].<ref>{{Cite news|language=de|title=Konjunktur bremst Bertelsmann|first=Hans-Peter|last=Siebenhaar|newspaper=Handelsblatt|date=November 12, 2008|page=16}}</ref><ref>{{Cite news|language=de|title=Wie Bertelsmann wieder Musikriese werden will|first=Ileana|last=Grabitz|newspaper=Die Welt|date=March 4, 2013|page=14}}</ref> Since Bertelsmann could not supply the required funds on its own, a 51% stake was sold to financial investor [[Kohlberg Kravis Roberts|KKR]] in 2009.<ref>{{Cite news|title=Bertelsmann: Duett mit Heuschrecke|date=July 9, 2009|newspaper=Der Tagesspiegel|page=20|language=de}}</ref><ref name=":1">{{Cite news|title=Bertelsmann paktiert mit Investor KKR|first1=Lutz|last1=Knappmann|first2=Andrea|last2=Rungg|first3=Arndt|last3=Ohler|date=July 9, 2009|newspaper=Financial Times Deutschland|page=8|language=de}}</ref><ref>{{Cite news|title=BMG Is Back: Buying Songs With KKR Cash|first=Wolfgang|last=Spahr|date=August 15, 2009|newspaper=Billboard|page=17}}</ref> Bertelsmann retained 49% and the right to appoint the company's management.<ref>{{Cite news|title=KKR greift Bertelsmann im Musikrechtegeschäft unter die Arme|first=Hans G.|last=Nagl|date=July 9, 2009|newspaper=Handelsblatt|page=12|language=de}}</ref> The transaction allowed BMG to increase its equity ratio.<ref name=":1" />
Since 2012 BMG has expanded in the administration and management of master rights. The BMG masters model is based on band and company jointly agreeing a budget and working together to manage costs and then paying the artist a much larger [[Royalties|royalty]].<ref>{{cite news| url=http://www.musicweek.com/story.asp?sectioncode=1&storycode=1048760&c=1| work=MusicWeek | title=BMG: Dexys' release shows artists want alternatives to 'old-style record deals' | date=2012-03-07}}</ref>


===International expansion===
==Artists and writers==
Initially, Bertelsmann had announced that the new BMG would focus on the European broadcast market. After KKR became the majority shareholder, the company set its sights on expanding internationally.<ref>{{Cite news|title=BMG sucht in großem Stil Musikrechte|first=Andrea|last=Rungg|date=January 22, 2010|newspaper=Financial Times Deutschland|page=8|language=de}}</ref><ref>{{Cite news|title=Bertelsmann-Musiktochter auf großer Einkaufstour|date=July 26, 2010|newspaper=Rheinische Post|language=de}}</ref> A key step towards achieving this goal was acquiring [[Cherry Lane Music|Cherry Lane Music Publishing]] in 2009, which provided BMG with its first foothold in the United States.<ref name=":4">{{Cite news|title=Bei Bertelsmann spielt wieder die Musik|first=Hans-Peter|last=Siebenhaar|date=May 4, 2010|newspaper=Handelsblatt|page=26|language=de}}</ref><ref>{{Cite news|language=de|title=Bertelsmann übernimmt Rechte an Elvis-Songs|first=Lutz|last=Knappmann|date=March 29, 2010|newspaper=Financial Times Deutschland|page=7}}</ref><ref>{{Cite web|url=https://www.billboard.com/biz/articles/news/publishing/1261846/bmg-rights-management-enters-us|title=BMG Rights Management Enters U.S.|first=Wolfgang|last=Spahr|date=December 14, 2009|website=billboard.com|access-date=January 10, 2018}}</ref><ref>{{Cite web|url=https://www.billboard.com/biz/articles/news/publishing/1209332/bmg-rights-management-to-acquire-cherry-lane|title=BMG Rights Management to Acquire Cherry Lane|first=Andre|last=Paine|date=March 26, 2010|website=billboard.com|access-date=January 10, 2018}}</ref> BMG made several other purchases in 2010, including [[Evergreen Copyrights|Evergreen Copyright Acquisitions]].<ref>{{Cite web|url=https://www.wsj.com/articles/SB10001424052748703305004575503723927879124|title=BMG Rights Venture Buys Music Publisher|date=September 21, 2010|website=wsj.com|access-date=January 10, 2018}}</ref><ref>{{Cite news|title=Bertelsmann holt sich Clapton und Cocker|date=September 21, 2010|newspaper=Neue Westfälische|language=de}}</ref>
{{div col|cols=3}}
* [[Al Shux]]
* [[Amy Lee]]
* [[Anastacia]]
* [[apl.de.ap]]
* [[Billy Idol]]
* [[Blondie (band)]]
* [[Bruno Mars]]
* [[Carl Falk]]
* [[Cee Lo Green]]
* [[Damon Albarn]]
* [[Dan Wilson]]
* [[David Bowie]]
* [[Deaf Havana]]
* [[Dexys Midnight Runners|Dexys]]
* [[Die Prinzen]]
* [[Die Toten Hosen]]
* [[Duran Duran]]
* [[Estelle Swaray]]
* [[Evanescence]]
* [[Foo Fighters]]
* [[Frank Turner]]
* [[Gerry Rafferty]]
* [[Gorillaz]]
* [[Hillary Lindsey]]
* [[IAMX]]
* [[Iggy Pop]]
* [[Jethro Tull (band)|Jethro Tull]]
* [[Jim Beanz]]
* [[John Benitez]]
* [[John Denver]]
* [[John Legend]]
* [[Kara DioGuardi]]
* [[Kevin Barnes]]
* [[Kevin Rowland]]
* [[Kina Grannis]]
* [[Kings of Leon]]
* [[Kylie Minogue]]
* [[Marlon Roudette]]
* [[Matt Nathanson]]
* [[Matt Schwartz]]
* [[MC Hammer]]
* [[MGMT]]
* [[Nate Mendel]]
* [[Nena]]
* [[New York Dolls]]
* [[Of Montreal]]
* [[Outkast]]
* [[Paolo Conte]]
* [[Pat Smear]]
* [[Portishead (band)|Portishead]]
* [[Quincy Jones]]
* [[Rizzle Kicks]]
* [[Rodney Jerkins]]
* [[Roy Orbison]]
* [[Rubik (band)|Rubik]]
* [[Rumer]]
* [[Sex Pistols]]
* [[Tears for Fears]]
* [[The Asteroids Galaxy Tour]]
* [[The Civil Wars]]
* [[The Dø]]
* [[The Horrors]]
* [[The Maccabees (band)|The Maccabees]]
* [[Toby Gad]]
* [[Viktoria Hansen]]
* [[Virginia Jetzt!]]
* [[Wayne Jackson]]
* [[will.i.am]]
* [[Woody Guthrie]]
* [[ZZ Top]]
{{div col end}}


In 2011, [[Bug Music]] was bought by BMG,<ref>{{Cite web|url=https://www.billboard.com/biz/articles/news/publishing/1170198/bmg-rights-management-to-purchase-bug-music|title=BMG Rights Management to Purchase Bug Music|date=September 12, 2011|website=billboard.com|access-date=January 10, 2018}}</ref> followed by music publisher R2M Music in 2012.<ref>{{Cite web|url=https://www.musicbusinessworldwide.com/bmg-acquires-2pac-neil-sedaka-hits-with-r2m-buyout|title=Bmg Acquires 2Pac, Neil Sedaka Hits with R2M Buyout|website=musicbusinessworldwide.com|date=March 1, 2012|access-date=February 25, 2019}}</ref> Bertelsmann was also reported to be interested in buying [[EMI]],<ref>{{Cite news|title=Bertelsmann schielt auf EMI-Archiv|date=June 25, 2009|newspaper=Börsen-Zeitung|page=10|language=de}}</ref> but EMI was ultimately acquired by [[Universal Music Group]] and [[Warner Music Group]] (record labels) and [[Sony/ATV Music Publishing]] (songwriters).<ref>{{Cite news|title=Das stille Konzert der großen Fünf|first=Volker S.|last=Stahr|date=May 6, 2001|newspaper=Berliner Morgenpost|page=17|language=de}}</ref><ref>{{Cite web|url=http://www.sueddeutsche.de/wirtschaft/musikindustrie-universal-darf-emi-uebernehmen-1.1474338|title=Musikindustrie: Universal darf EMI übernehmen|date=September 21, 2012|website=sueddeutsche.de|language=de|access-date=January 10, 2018}}</ref> The regulatory authorities approved the deal subject to some conditions, including the sale of several labels.<ref>{{Cite web|url=https://www.focus.de/finanzen/news/wirtschaftsticker/eu-kommission-universal-darf-emi-unter-auflagen-uebernehmen_aid_824493.html|title=EU-Kommission: Universal darf EMI unter Auflagen übernehmen|date=September 21, 2012|website=focus.de|language=de|access-date=January 10, 2018}}</ref> BMG was thus able to acquire [[Mute Records]] (2012) and [[Sanctuary Records]] (2013),<ref>{{Cite web|url=https://www.billboard.com/biz/articles/news/1483719/bmg-acquires-mute-records-catalog|title=BMG Acquires Mute Records Catalog|first=Ed|last=Christman|date=December 21, 2012|website=billboard.com|access-date=January 10, 2018}}</ref><ref>{{cite news| url=http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-universal-music-agrees-to-sell-sanctuary-records-20130214,0,6072346.story| work=Los Angeles Times| title=Universal Music agrees to sell Sanctuary Records| date=2013-02-14| first=Dawn C.| last=Chmielewski| access-date=2013-02-15| archive-url=https://web.archive.org/web/20130215162618/http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-universal-music-agrees-to-sell-sanctuary-records-20130214,0,6072346.story| archive-date=2013-02-15| url-status=live}}</ref> as well as the publishing catalogues of EMI Virgin Music and [[Famous Music]] UK from Sony/ATV.<ref name=Virgin>{{Cite web|url=http://www.hollywoodreporter.com/news/bmg-buys-virgin-famous-music-406080|title=BMG Buys Virgin, Famous Music Catalog From Sony/ATV|first=Scott|last=Roxborough|website=hollywoodreporter.com|date=December 21, 2012|access-date=February 25, 2019}}</ref>
==See also==

*[[Bertelsmann Music Group]]
===Becoming a group division===
*[[Sony BMG]]
In 2013, KKR sold its stake in BMG to Bertelsmann,<ref>{{Cite news|url=https://www.ft.com/content/c106cd18-824b-11e2-8404-00144feabdc0|title=Bertelsmann Takes Control of BMG|first=Gerrit|last=Wiesmann|date=March 1, 2013|newspaper=Financial Times|access-date=January 10, 2018}}</ref> making it the sole shareholder of the company.<ref>{{Cite news|title=Bertelsmann dirigiert jetzt wieder: Finanzinvestor KKR verkauft 51-prozentige Beteiligung an der Musiktochter BMG|first=Martin|last=Krause|date=March 2, 2013|newspaper=Neue Westfälische|language=de}}</ref> Under the leadership of Chief Executive Officer [[Thomas Rabe (manager)|Thomas Rabe]],<ref>{{Cite news|title=Das Imperium kehrt zurück|first=Steffen|last=Könau|date=March 2, 2013|newspaper=Mitteldeutsche Zeitung|language=de}}</ref><ref>{{Cite news|title=Jahr der Umbauten|date=March 27, 2013|newspaper=Neue Westfälische|language=de}}</ref> who had been a key driver of BMG's expansion during his time as Chief Financial Officer,<ref name=":4" /> Bertelsmann again cited music as one of its strategic growth areas.<ref>{{Cite news|title=Bertelsmann setzt wieder voll auf Musik|date=March 1, 2013|newspaper=Die Welt|page=3|language=de}}</ref>
*[[Bertelsmann]]

In 2013, the company began to represent rights to songs by [[Robbie Williams]] and the [[The Rolling Stones|Rolling Stones]].<ref>{{Cite news|language=de|title=Robbie Williams singt exklusiv für Bertelsmann-Tochter BMG|newspaper=Westfalen-Blatt|date=October 18, 2013}}</ref><ref>{{Cite news|title=Satisfaktion für Bertelsmann|first=Hans-Peter|last=Siebenhaar|language=de|date=June 27, 2013|newspaper=Handelsblatt|page=21}}</ref> Record labels were also added to the portfolio including Union Square Music (distributor of [[Universal Music]]'s [[ZTT Records]] and [[Stiff Records]]),<ref>{{Cite web|url=https://www.billboard.com/articles/business/6304469/bmg-acquires-union-square-music|title=BMG Purchases Union Square Music|first1=Ed|last1=Christman|first2=Richard|last2=Smirke|date=November 6, 2014|website=billboard.com|access-date=January 10, 2018}}</ref> Vagrant Music and Infectious Music (2014),<ref>{{Cite web|url=https://www.billboard.com/articles/business/6319858/vagrant-records-acquired-bmg-chrysalis|title=Vagrant Records Bought by BMG Chrysalis|website=billboard.com|first=Ed|last=Christman|date=November 17, 2014|access-date=October 1, 2018}}</ref><ref>{{Cite web|website=musicbusinessworldwide.com|title=Infectious Music Acquired by BMG in £6m Deal|url=https://www.musicbusinessworldwide.com/infectious-music-acquired-by-bmg-in-6m-deal/|date=September 2, 2014|access-date=October 1, 2018}}</ref> as well as [[S-Curve Records]]<ref>{{Cite web|website=musicbusinessworldwide.com|url=https://www.musicbusinessworldwide.com/bmg-acquires-new-york-label-s-curve-records|date=November 3, 2015|access-date=February 25, 2019|title=BMG Acquires New York Label S-Curve Records}}</ref> and [[Rise Records]] (2015).<ref>{{Cite web|url=https://www.billboard.com/articles/business/6568699/bmg-buys-metal-label-rise-records|title=BMG Buys Metal Label Rise Records|date=May 18, 2015|website=billboard.com|access-date=January 10, 2018}}</ref> Other acquisitions followed in 2016, including the label [[ARC Music]] and the catalog of [[The End Records]].<ref>{{Cite web|url=https://www.musicbusinessworldwide.com/bmg-acquires-end-records-assets/|title=BMG Acquires Assets of New York Indie The End Records|date=June 30, 2016|website=musicbusinessworldwide.com|access-date=January 10, 2018}}</ref><ref>{{Cite web|url=http://www.mediabiz.de/musik/news/bmg-uebernimmt-mehrheit-am-chess-verlag-arc-music/403350|title=BMG übernimmt Mehrheit am Chess-Verlag ARC Music|date=January 19, 2016|website=mediabiz.de|language=de|access-date=January 10, 2018}}</ref> By acquiring Basement, BMG entered the market in Brazil,<ref>{{Cite web|url=https://www.musicbusinessworldwide.com/bmg-launches-brazil/|title=BMG Launches in Brazil and Acquires John Telfer's Basement|date=May 31, 2016|website=musicbusinessworldwide.com|access-date=January 10, 2018}}</ref> one of Bertelsmann's growth regions.<ref>{{Cite news|title=Bertelsmann sucht Chance in Brasilien|date=March 20, 2014|language=de|newspaper=Westfalen-Blatt}}</ref><ref>{{Cite news|title=Bertelsmann setzt auf Brasilien|date=March 21, 2014|newspaper=Börsen-Zeitung|page=11|language=de}}</ref> In 2016, the company also signed an agreement with Warner Music's [[Alternative Distribution Alliance]] for the physical and digital distribution of music,<ref>{{Cite web|url=https://www.billboard.com/articles/business/7350142/warner-music-ada-global-deal-bmg-catalog-blink-182|title=Warner Music's Global Deal for BMG's Sets up Showdown with RED|first=Ed|last=Christman|date=April 28, 2016|website=billboard.com|access-date=January 10, 2018}}</ref> allowing BMG to consolidate its longstanding sales structures.<ref>{{Cite web|url=https://www.musicbusinessworldwide.com/warner-signs-bmg-deal-for-exclusive-worldwide-distribution/|title=Warner Signs BMG Deal for Exclusive Worldwide Distribution of Catalogue|first=Tim|last=Ingham|date=April 19, 2016|website=musicbusinessworldwide.com|access-date=January 10, 2018}}</ref> BMG further expanded by entering the Chinese market in cooperation with [[Alibaba Group|Alibaba]], allowing the online company to distribute the work of musicians and composers via its web channels while securing copyrights.<ref>{{Cite web|url=http://www.dw.com/de/bmg-kooperiert-mit-alibaba/a-18349334|title=BMG kooperiert mit Alibaba|date=March 30, 2015|website=dw.com|language=de|access-date=January 10, 2018}}</ref>

In the 2015 financial year, BMG was part of the Corporate Investments division at Bertelsmann.<ref>{{Cite web|url=https://www.bertelsmann.com/media/investor-relations/annual-reports/annual-report-2015-financial-information.pdf|archive-url=https://web.archive.org/web/20160611052010/https://www.bertelsmann.com/media/investor-relations/annual-reports/annual-report-2015-financial-information.pdf|url-status=live|title=Annual Report 2015|archive-date=June 11, 2016|publisher=Bertelsmann|access-date=January 10, 2018}}</ref> In 2016, the media group turned the subsidiary into a stand-alone division.<ref name=":5" /> Today, BMG is considered a prime example of how growth platforms are created and leveraged at Bertelsmann.<ref>{{Cite news|title=Bertelsmann sichert sich die Stars|first=Bernhard|last=Hertlein|date=March 2, 2013|newspaper=Westfalen-Blatt|language=de}}</ref><ref>{{Cite web|url=https://www.bertelsmann.de/strategie/wachstumsplattformen/|title=Wachstumsplattformen: Großartige Chancen|publisher=Bertelsmann|language=de|access-date=January 10, 2018}}</ref>

===Acquisition of BBR Music and new labels===
In 2017, BMG announced the purchase of [[BBR Music Group]],<ref>{{Cite web|url=https://www.billboard.com/articles/business/7670055/bmg-acquires-bbr-music-group-broken-bow-nashville-indie|title=BMG Acquires Nashville Indie BBR Music Group, Home of Broken Bow Records and Jason Aldean|first1=Marc|last1=Schneider|first2=Ed|last2=Christman|date=January 30, 2017|website=billboard.com|language=de|access-date=January 10, 2018}}</ref> including the labels Broken Bow Records, Red Bow Records, Stoney Creek Records, Wheelhouse Records and the music publisher Magic Mustang Music.<ref name=":6">{{Cite web|url=http://www.handelsblatt.com/unternehmen/it-medien/musikrechte-bertelsmann-goes-country/19327396.html|title=Musikrechte: Bertelsmann goes Country|first=Catrin|last=Bialek|date=January 31, 2017|website=handelsblatt.com|language=de|access-date=January 10, 2018}}</ref> With a value of more than 100 million [[United States dollar|dollars]], the transaction was the largest recorded music acquisition in the company's history.<ref>{{Cite web|url=https://www.musicbusinessworldwide.com/bmg-beats-majors-to-acquire-jason-aldean-label-broken-bow/|title=BMG Beats Majors to Acquire Jason Aldean Label Broken Bow|date=January 30, 2017|website=musicbusinessworldwide.com|access-date=January 10, 2018}}</ref> BMG thus improved its position in the [[country music]] segment and ensured its long-term presence in the [[Nashville, Tennessee|Nashville]] music industry and its overall impact on the United States market.<ref name=":6" />

In 2022, BMG announced its first new British record label within the group since 2009, Tag8 Music.<ref>{{cite web | url=https://www.musicweek.com/labels/read/alistair-norbury-shares-his-vision-for-tag8-music-bmg-s-first-uk-label-launch-in-13-years/086857 | title=Alistair Norbury shares his vision for Tag8 Music - BMG's first UK label launch in 13 years }}</ref><ref>{{cite web | url=https://www.recordoftheday.com/news-and-press/bmg-and-lme-launch-new-label-tag8-with-albums-from-blue-pixie-lott-and-roachford | title=BMG and LME launch new label Tag8 with albums from Blue, Pixie Lott and Roachford }}</ref><ref>{{cite web | url=https://www.bmg.com/uk/news/BMG-and-LME-launch-new-label-Tag8-with-albums-from-Blue-Pixie-Lott-and-Roachford.html | title=UK: BMG and LME launch new label Tag8 with albums from Blue, Pixie Lott and Roachford | date=November 2, 2022 }}</ref> This label was set up in association with ex-Bros member [[Craig Logan]] and his management company Logan Media Entertainment, with Tag8 Music featuring established acts such as Pixie Lott, Roachford, and Louise Redknapp as part of its roster. On the Official Albums Chart Top 100 of 4 November 2022, the label charted its first hit album in the form of Blue's ''Heart & Soul''.<ref>{{cite web | url=https://www.officialcharts.com/charts/albums-chart/ | title=Official Albums Chart Top 100 &#124; Official Charts Company | website=[[Official Charts Company|Official Charts]] }}</ref><ref>{{cite web | url=https://www.officialcharts.com/search/albums/heart-_and_-soul/ | title=Heart & soul &#124; full Official Chart History &#124; Official Charts Company | website=[[Official Charts Company|Official Charts]] }}</ref><ref>{{cite web | url=https://www.officialcharts.com/artist/24824/blue/ | title=Blue &#124; full Official Chart History &#124; Official Charts Company | website=[[Official Charts Company|Official Charts]] }}</ref>

In October 2023, BMG signed with [[Universal Music Group]] for physical distribution, and started self-distributing its own catalog on digital platforms, thus ending their partnership with Warner Music.<ref>{{cite web|url=https://www.musicbusinessworldwide.com/bmg-forms-alliance-with-universal-sets-plan-to-move-physical-distro-to-umgs-commercial-services-division12/|date=19 October 2023|website=musicbusinessworldwide.com|title=BMG FORMS ALLIANCE WITH UNIVERSAL MUSIC GROUP; PLANS TO MOVE PHYSICAL DISTRIBUTION TO UMG’S COMMERCIAL SERVICES DIVISION}}</ref> The transition of physical distribution to Universal took place over the course of 2024 and is set to officially change over in October of 2024.

==Corporate structure==
BMG's parent enterprise is BMG Rights Management GmbH, a [[Gesellschaft mit beschränkter Haftung|limited liability company]] according to German law. The company's objective is "the marketing of music, as well as its development and delivery" for use in media, at concerts and for other purposes.<ref>{{Cite web|url=https://www.unternehmensregister.de/|title=Unternehmensregister (Amtsgericht Charlottenburg, HRB 116072)|publisher=Bundesanzeiger Verlag|language=de|access-date=January 10, 2018}}</ref> BMG has numerous [[Subsidiary|subsidiaries]] and [[shareholdings]], for example, BMG Rights Management (Europe) GmbH.<ref>{{Cite web|url=https://www.unternehmensregister.de/|title=Unternehmensregister (Amtsgericht Charlottenburg, HRB 143973)|publisher=Bundesanzeiger Verlag|language=de|access-date=January 10, 2018}}</ref> In addition to Germany, BMG is present in Australia, Brazil, China, France, Italy, Spain, the UK, the Benelux countries, the United States, Canada, and Scandinavia.<ref>{{Cite web|url=https://www.bmg.com/de/about.html|title=About BMG|date=October 2, 2015|access-date=January 10, 2018}}</ref>

BMG's senior management includes Thomas Coesfeld ([[Chief executive officer|Chief Executive Officer]]), Mathis Wolter ([[Chief financial officer|Chief Financial Officer]]), Ama Walton ([[General counsel|General Counsel]] and [[Chief human resources officer|Chief Human Resources Officer]]) and Ben Katovsky ([[Chief operating officer|Chief Operating Officer]]).<ref>{{Cite web|url=https://www.billboard.com/articles/business/8465308/bmg-promotes-ben-katovsky-coo-ama-walton-global-general-counsel|website=billboard.com|title=BMG Promotes Ben Katovsky to COO, Ama Walton to Global General Counsel|first=Wolfgang|last=Spahr|date=July 13, 2018|access-date=October 1, 2018}}</ref> Masuch has been a member of Bertelsmann's Group Management Committee since 2013.<ref>{{Cite news|title=Bertelsmann stockt Führungskreis auf|date=June 4, 2013|newspaper=Börsen-Zeitung|page=16|language=de}}</ref>

In the 2018 financial year, BMG posted revenues of €545 million. Rights and licenses accounted for 91.1% and products and merchandise 8.9%. Almost half of its revenues (44.1%) were generated in the United States. Other important markets were the United Kingdom (24.7%), Germany (6.3%) and France (3.9%).<ref>{{Cite web|url=https://www.bertelsmann.com/media/investor-relations/annual-reports/bertelsmann-annual-report-2018-finance-engl.pdf|archive-url=https://web.archive.org/web/20190328093051/https://www.bertelsmann.com/media/investor-relations/annual-reports/bertelsmann-annual-report-2018-finance-engl.pdf|url-status=live|title=Annual Report 2018|date=March 26, 2019|archive-date=March 28, 2019|publisher=Bertelsmann|pages=21, 130|access-date=April 1, 2019}}</ref>

==Business model==
BMG offers musicians the services generally provided by music publishers and record labels.<ref name=":0" /> Unlike its major competitors, it runs them under the same roof and on the same technology platform.<ref>{{Cite news|title=Bertelsmann startet neu im Musikrechte-Geschäft|date=October 15, 2008|newspaper=Die Welt|page=15|language=de}}</ref><ref>{{Cite news|title=Bertelsmann will mehr Musikrechte|date=June 25, 2009|newspaper=Neue Westfälische|language=de}}</ref><ref>{{Cite book|title=Digitalisierung in der Musikindustrie: Wirtschaftliche Probleme und die Suche nach alternativen Einnahmequellen|first=Sabrina|last=Blauth|date=2016|publisher=Diplomica Verlag|isbn=978-3-95934-339-8|location=Hamburg|page=25|language=de}}</ref> More recently, it has added film, television, and books to its roster of services.<ref name=":7" /><ref>{{Cite web|url=https://www.billboard.com/articles/business/7751476/bmg-publishes-first-book-with-the-odessey-the-zombies-in-words-and-images|title=BMG Publishes First Book With "The Odessey: The Zombies in Words and Images"|website=billboard.com|first=Andy|last=Gensler|date=April 4, 2017|access-date=January 10, 2019}}</ref>

===Publishing===
BMG publishing represents the rights of songwriters.<ref name=":9">{{Cite web|url=https://www.bmg.com/de/publishing.html|title=Publishing|date=October 2015|publisher=BMG |access-date=January 10, 2019}}</ref>

===Production music===
BMG has a significant library of [[production music]] (library music), for use in films, television, advertising, and other media. These catalogues include MusicDirector (part of Talpa Music), Human Music, Music Beyond, X-Ray Dog, Beds & Beats, Valentino Production Music, [[Immediate Music]],<ref>{{Cite web |url=https://variety.com/2017/music/news/bmg-production-music-acquires-immediate-1202597122 |title=BMG Production Music Expands With Acquisition of Movie Marketing Mainstay |access-date=March 22, 2018 |archive-url=https://web.archive.org/web/20180305194336/http://variety.com/2017/music/news/bmg-production-music-acquires-immediate-1202597122/ |archive-date=March 5, 2018 |first=Paula|last=Parisi|date=October 23, 2017 }}</ref> AXS Music,<ref>{{Cite web |url=https://variety.com/2017/music/news/bmg-production-music-beefs-up-acquires-axs-makes-two-key-hires-1202556519 |title=BMG Production Music Beefs Up: Acquires AXS, Makes Two Key Hires |date=September 13, 2017 |access-date=March 22, 2018 |archive-url=https://web.archive.org/web/20180323171823/http://variety.com/2017/music/news/bmg-production-music-beefs-up-acquires-axs-makes-two-key-hires-1202556519/ |archive-date=March 23, 2018}}</ref> Altitude Music, and Must Save Jane.<ref>{{cite web|title=BMG Brings Together 400,000 Production Music Tracks Under One Brand|url=https://www.musicbusinessworldwide.com/bmg-brings-together-400000-production-music-tracks-one-brand/|website=musicbusinessworldwide.com|access-date=February 25, 2019|date=February 6, 2017|archive-url=https://web.archive.org/web/20170209182730/http://www.musicbusinessworldwide.com/bmg-brings-together-400000-production-music-tracks-one-brand/|archive-date=February 9, 2017}}</ref>

==Labels==
*[[19 Records]]
*43B
*Too Lost LLC
*[[BBR Music Group]]
**Broken Bow Records
**Stoney Creek Records
**Wheelhouse Records
*[[Rise Records]]
*[[S-Curve Records]] (back catalogue)
*[[Infectious Music]]
*[[Vagrant Records]]
*[[Chrysalis Music|BMG Chrysalis]]
**[[The Echo Label]]
**[[Go-Feet Records]]
**[[MAM Records]]
*[[Mute Records]] (pre-2010 catalogue)
*Union Square Music
**Salvo
**Metro
*[[Skint Records]]
**[[Loaded Records]]
**[[Goapele|Skyblaze Recordings]]
*[[Sanctuary Records Group]]
**[[Castle Communications]]
**[[Pye Records]]
**Precision Records and Tapes
**[[Transatlantic Records]]
**[[Sugar Hill Records (hip hop label)|Sugar Hill Records]]
**[[CMC International]]
**Mayan Records
**[[Neat Records]]
**[[Noise Records]]
**[[RAS Records]]
**[[Trojan Records]]
***[[Jet Records]]
***[[Upsetter Records (Jamaican record label)|Upsetter Records]]
**[[Urban Records]]
*Countdown Media
**[[Dave Miller (producer)|Alshire/Somerset]]
**[[Everest Records]]
**Mediaphon
**[[Ray Lawrence (record producer)|Dobre Records]]
**SRP Records
**Glove Music
**Alto Records
*[[RAM Records]]
*[[RBC Records]]
*[[World Circuit (record label)|World Circuit Records]]
*[[Disques Dreyfus]]
*[[Albert Music]]
**[[Albert Productions]]
*[[The End Records]]
*[[Verse Music Group]]
**[[Golden Records]]
**[[Bethlehem Records]]
**[[Salsoul Records]]
**[[West End Records]]
*[[Pete Waterman Entertainment]]
*[[Paracadute]]
*[[Strictly Rhythm]] (back catalogue)
*[[Dark Horse Records]]
*Cavalcade Recordings<ref name="minder">{{Cite web|title=BMG Gets Soul, Acquires Minder Music And Cavalcade Recordings|work=Hypebot|date=July 9, 2015|access-date = April 26, 2019|url=https://www.hypebot.com/hypebot/2015/07/bmg-gets-soul-acquires-minder-music-and-cavalcade-recordings.html}}</ref>
*BMG Talpa Music (Netherlands)
*BMG Production Music
*Cheyenne Records<ref>{{Cite web|url=https://www.musicbusinessworldwide.com/bmg-acquires-cheyenne-records-catalog-including-songs-by-germanys-most-successful-girl-group-no-angels/|title=BMG acquires Cheyenne Records catalog including music by Germany's most successful girl group No Angels|date=November 26, 2020|website=Music Business Worldwide}}</ref>
*Intertwine (joint venture with [[Eshy Gazit]])<ref>{{Cite magazine|url=https://www.billboard.com/articles/business/record-labels/9587625/eshy-gazit-intertwine-label-bmg-monsta-x-wonho/|title=Eshy Gazit Launching New Label With BMG To Release Monsta X, Wonho|magazine=Billboard|last=Lipshutz|first=Jason|date=June 15, 2021|access-date=October 25, 2021}}</ref>
*Modern Recordings
*Telamo
*Renew Records
*OM Records (joint-venture with [[Olympique de Marseille]])
*Tag8 Music

==Awards==
*2016, 2017, 2018: "Independent Publisher of the Year" by [[American Society of Composers, Authors and Publishers]]<ref>{{Cite web|publisher=American Society of Composers, Authors and Publishers|url=https://www.ascap.com/news-events/awards/2016/pop-awards|title=2016 ASCAP Pop Music Awards|access-date=October 4, 2018}}</ref><ref>{{Cite web|publisher=American Society of Composers, Authors and Publishers|url=https://www.ascap.com/news-events/awards/2017/pop-awards|title=2017 ASCAP Pop Music Awards|access-date=October 4, 2018}}</ref><ref>{{Cite web|publisher=American Society of Composers, Authors and Publishers|url=https://www.ascap.com/news-events/awards/2018/pop-awards|title=2018 ASCAP Pop Music Awards|access-date=October 4, 2018}}</ref>
*2018: "Production Music Awards" for BMG Production Music<ref>{{Cite web|url=http://www.productionmusicawards.com/winners-2018/|title=Winners 2018|website=The Production Music Awards|access-date=January 10, 2019|archive-date=January 5, 2019|archive-url=https://web.archive.org/web/20190105210606/http://www.productionmusicawards.com/winners-2018/|url-status=dead}}</ref>
*2018: "Publisher of the Year", A&R Awards, United Kingdom<ref>{{Cite web|url=https://www.musicbusinessworldwide.com/the-ar-awards-2018-all-the-winners/|title=The A&R Awards 2018: All the Winners|website=musicbusinessworldwide.com|date=November 7, 2018|access-date=January 16, 2019}}</ref>


==References==
==References==
Line 137: Line 166:


==External links==
==External links==
*{{Official website|http://www.bmg.com/}} (Head office)
*[https://www.bmg.com/ Official website] of BMG
*{{Official website|http://www.bmgchrysalis.com/}} (US office)
*{{Official website|http://www.bmgchrysalis.co.uk/}} (UK office)
*{{Official website|http://www.bmgchrysalis.se/}} (Scandinavian office)
*{{Facebook|BMGRM}}
*{{Twitter|bmgrm}}


{{Bertelsmann}}
{{Bertelsmann}}
{{KKR}}
{{Kohlberg Kravis Roberts}}
{{Music industry}}
{{Authority control}}


[[Category:Bertelsmann subsidiaries]]
[[Category:Bertelsmann subsidiaries]]
[[Category:Entertainment companies established in 2008]]

[[Category:German companies established in 2008]]
[[de:BMG Rights Management]]
[[Category:German record labels]]
[[fr:BMG Rights Management]]
[[Category:Kohlberg Kravis Roberts companies]]
[[it:BMG Rights Management]]
[[Category:Mass media companies established in 2008]]
[[Category:Music publishing companies of Germany]]
[[Category:Record label distributors]]
[[Category:Record labels established in 2008]]

Latest revision as of 09:15, 10 December 2024

BMG Rights Management GmbH
Bertelsmann Music Group (2009–present)
Company typeDivision
IndustryMusic
Predecessors
FoundedOctober 2008; 16 years ago (2008-10) in Berlin, Germany
Headquarters
Berlin
,
Germany
Number of locations
20 countries (2020)
Area served
Worldwide
Key people
  • Thomas Coesfeld (CEO)
  • Mathis Wolter (CFO)
  • Ben Katovsky (COO)
ServicesMusic rights management
RevenueIncrease €602 million (2020)
Increase €137 million (2020)
Number of employees
974 (2020)
ParentBertelsmann
Websitebmg.com
Footnotes / references
BMG's main distributor is Universal Music Group for physical media marketing only,[1] with digital distribution duties being transferred to BMG's own systems. Additional distributors, depending on artist and division, are Sony Music, RED Distribution, PIAS Group, SPV GmbH, Good2Go, Demon Music Group, Rough Trade and others.

BMG Rights Management GmbH (also known simply as BMG) is an international music company based in Berlin, Germany.[2] It combines the activities of a music publisher and a record label.[3][4]

BMG was founded in October 2008 after Bertelsmann sold its stake in Sony BMG to Sony.[5] From 2009 to 2013, the investment firm KKR held 51% of the company, which became one of the world's largest music publishers during that time.[6][7] BMG is 100% owned by Bertelsmann and one of the group's eight business divisions.[8]

History

[edit]

Music at Bertelsmann

[edit]
Main article: Bertelsmann Music Group

In the 1950s, Bertelsmann entered the music business when it added music to its book club.[9] Ariola, a record label, was launched and Sonopress, a pressing plant, was established.[10][11] In 1975, Ariola opened an office in the United States.[12] Bertelsmann acquired Arista Records in 1979 and RCA Records in 1985, thereby becoming one of the world's largest music companies.[13] Its various subsidiaries were brought together in 1987 to form Bertelsmann Music Group (BMG), which did business in a number of genres, including folk, pop, and in particular classical music.[14]

In response to declining sales in the overall music market, Bertelsmann agreed to merge its record label interests with Sony in 2003; the company was called Sony BMG.[15][16] Furthermore, in 2006, Bertelsmann sold its subsidiary BMG Music Publishing to Universal Music Group.[17][18] Having reached the conclusion that established music publishing companies and record labels were not appropriate for an increasingly digital music business, Bertelsmann sold its stake in the Sony BMG joint venture in 2008.[19] The company was subsequently renamed Sony Music Entertainment.[20]

Launch of the new BMG

[edit]

In October 2008, Bertelsmann launched the new BMG with a small portfolio of recorded music rights of around 200 artists it retained from Sony BMG.[3][21] It declared it would pursue a business model focused on fairness, service and transparency.[4][22]

The launch of the new BMG came amidst the 2008 financial crisis, and within two weeks of the collapse of Lehman Brothers.[23][24] Since Bertelsmann could not supply the required funds on its own, a 51% stake was sold to financial investor KKR in 2009.[25][26][27] Bertelsmann retained 49% and the right to appoint the company's management.[28] The transaction allowed BMG to increase its equity ratio.[26]

International expansion

[edit]

Initially, Bertelsmann had announced that the new BMG would focus on the European broadcast market. After KKR became the majority shareholder, the company set its sights on expanding internationally.[29][30] A key step towards achieving this goal was acquiring Cherry Lane Music Publishing in 2009, which provided BMG with its first foothold in the United States.[31][32][33][34] BMG made several other purchases in 2010, including Evergreen Copyright Acquisitions.[35][36]

In 2011, Bug Music was bought by BMG,[37] followed by music publisher R2M Music in 2012.[38] Bertelsmann was also reported to be interested in buying EMI,[39] but EMI was ultimately acquired by Universal Music Group and Warner Music Group (record labels) and Sony/ATV Music Publishing (songwriters).[40][41] The regulatory authorities approved the deal subject to some conditions, including the sale of several labels.[42] BMG was thus able to acquire Mute Records (2012) and Sanctuary Records (2013),[43][44] as well as the publishing catalogues of EMI Virgin Music and Famous Music UK from Sony/ATV.[45]

Becoming a group division

[edit]

In 2013, KKR sold its stake in BMG to Bertelsmann,[46] making it the sole shareholder of the company.[47] Under the leadership of Chief Executive Officer Thomas Rabe,[48][49] who had been a key driver of BMG's expansion during his time as Chief Financial Officer,[31] Bertelsmann again cited music as one of its strategic growth areas.[50]

In 2013, the company began to represent rights to songs by Robbie Williams and the Rolling Stones.[51][52] Record labels were also added to the portfolio including Union Square Music (distributor of Universal Music's ZTT Records and Stiff Records),[53] Vagrant Music and Infectious Music (2014),[54][55] as well as S-Curve Records[56] and Rise Records (2015).[57] Other acquisitions followed in 2016, including the label ARC Music and the catalog of The End Records.[58][59] By acquiring Basement, BMG entered the market in Brazil,[60] one of Bertelsmann's growth regions.[61][62] In 2016, the company also signed an agreement with Warner Music's Alternative Distribution Alliance for the physical and digital distribution of music,[63] allowing BMG to consolidate its longstanding sales structures.[64] BMG further expanded by entering the Chinese market in cooperation with Alibaba, allowing the online company to distribute the work of musicians and composers via its web channels while securing copyrights.[65]

In the 2015 financial year, BMG was part of the Corporate Investments division at Bertelsmann.[66] In 2016, the media group turned the subsidiary into a stand-alone division.[8] Today, BMG is considered a prime example of how growth platforms are created and leveraged at Bertelsmann.[67][68]

Acquisition of BBR Music and new labels

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In 2017, BMG announced the purchase of BBR Music Group,[69] including the labels Broken Bow Records, Red Bow Records, Stoney Creek Records, Wheelhouse Records and the music publisher Magic Mustang Music.[70] With a value of more than 100 million dollars, the transaction was the largest recorded music acquisition in the company's history.[71] BMG thus improved its position in the country music segment and ensured its long-term presence in the Nashville music industry and its overall impact on the United States market.[70]

In 2022, BMG announced its first new British record label within the group since 2009, Tag8 Music.[72][73][74] This label was set up in association with ex-Bros member Craig Logan and his management company Logan Media Entertainment, with Tag8 Music featuring established acts such as Pixie Lott, Roachford, and Louise Redknapp as part of its roster. On the Official Albums Chart Top 100 of 4 November 2022, the label charted its first hit album in the form of Blue's Heart & Soul.[75][76][77]

In October 2023, BMG signed with Universal Music Group for physical distribution, and started self-distributing its own catalog on digital platforms, thus ending their partnership with Warner Music.[78] The transition of physical distribution to Universal took place over the course of 2024 and is set to officially change over in October of 2024.

Corporate structure

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BMG's parent enterprise is BMG Rights Management GmbH, a limited liability company according to German law. The company's objective is "the marketing of music, as well as its development and delivery" for use in media, at concerts and for other purposes.[79] BMG has numerous subsidiaries and shareholdings, for example, BMG Rights Management (Europe) GmbH.[80] In addition to Germany, BMG is present in Australia, Brazil, China, France, Italy, Spain, the UK, the Benelux countries, the United States, Canada, and Scandinavia.[81]

BMG's senior management includes Thomas Coesfeld (Chief Executive Officer), Mathis Wolter (Chief Financial Officer), Ama Walton (General Counsel and Chief Human Resources Officer) and Ben Katovsky (Chief Operating Officer).[82] Masuch has been a member of Bertelsmann's Group Management Committee since 2013.[83]

In the 2018 financial year, BMG posted revenues of €545 million. Rights and licenses accounted for 91.1% and products and merchandise 8.9%. Almost half of its revenues (44.1%) were generated in the United States. Other important markets were the United Kingdom (24.7%), Germany (6.3%) and France (3.9%).[84]

Business model

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BMG offers musicians the services generally provided by music publishers and record labels.[3] Unlike its major competitors, it runs them under the same roof and on the same technology platform.[85][86][87] More recently, it has added film, television, and books to its roster of services.[21][88]

Publishing

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BMG publishing represents the rights of songwriters.[89]

Production music

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BMG has a significant library of production music (library music), for use in films, television, advertising, and other media. These catalogues include MusicDirector (part of Talpa Music), Human Music, Music Beyond, X-Ray Dog, Beds & Beats, Valentino Production Music, Immediate Music,[90] AXS Music,[91] Altitude Music, and Must Save Jane.[92]

Labels

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Awards

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References

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  2. ^ "Musikverlag BMG". mediabiz.de (in German). Retrieved January 10, 2018.
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  4. ^ a b Hein, David (October 16, 2008). "Bertelsmann belebt BMG". Horizont (in German). p. 6.
  5. ^ Spahr, Wolfgang (October 14, 2008). "Bertelsmann Unveils BMG Rights Management". billboard.com. Retrieved January 10, 2018.
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