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BMG Rights Management

From Alfawiki
BMG Rights Management GmbH
Company typeGmbH (limited liability company)
IndustryMusic publishing, record label
FoundedOctober 2008; 18 years ago (2008-10)
FounderHartwig Masuch
Headquarters
Berlin
,
Germany
Area served
Worldwide
Key people
Thomas Coesfeld (CEO), Mathis Wolter (CFO), Ama Walton (General Counsel and CHRO), Ben Katovsky (COO), Hartwig Masuch (Founder)
ProductsMusic publishing, record labels, production music
OwnerBertelsmann
ParentBertelsmann
Websitewww.bmg.com

BMG Rights Management GmbH (commonly known as BMG) is a global music company based in Berlin, Germany. It functions as both a music publishing entity and a record label.

Established in October 2008 following Bertelsmann’s divestment of its interest in Sony BMG to Sony, BMG rapidly expanded to become one of the leading music publishers worldwide. Between 2009 and 2013, the private equity firm KKR held a 51% ownership stake. Since then, BMG has been wholly owned by Bertelsmann and operates as one of its eight principal business sectors.

Bertelsmann's early involvement in music

Bertelsmann’s foray into the music sector began during the 1950s when it incorporated music offerings into its book club services. The company launched the record label Ariola and founded the pressing facility Sonopress. By 1975, Ariola extended its operations to the United States. In 1979, Bertelsmann acquired Arista Records, and in 1985 it secured a 50% stake in RCA Records, positioning itself among the world’s largest music corporations. After fully purchasing RCA Records in 1987, Bertelsmann unified its various music businesses under the umbrella of Bertelsmann Music Group (BMG), which encompassed genres such as folk, pop, and classical.

As traditional music sales declined, Bertelsmann merged its record label division with Sony in 2003, creating Sony BMG. In 2006, BMG Music Publishing was sold to Universal Music Group. Concluding that traditional models for music publishing and recording were less viable in the digital age, Bertelsmann exited the Sony BMG joint venture in 2008, which was subsequently renamed Sony Music Entertainment.

Reestablishment of BMG

In October 2008, Bertelsmann revived BMG by acquiring recorded music rights from approximately 200 artists previously retained from Sony BMG.[1][2] The company embraced a business philosophy emphasizing fairness, client service, and openness.[3]Cite error: The opening <ref> tag is malformed or has a bad name Launched amid the financial turmoil following Lehman Brothers' collapse,Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name Bertelsmann sold a majority 51% stake to investment firm KKR in 2009 while maintaining 49% ownership and control over management appointments.Cite error: The opening <ref> tag is malformed or has a bad name[4]Cite error: The opening <ref> tag is malformed or has a bad name This collaboration allowed BMG to bolster its financial foundation.[4]

Global growth

Initially focused on European broadcast markets, BMG pivoted towards international expansion after KKR became majority shareholder.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name The acquisition of Cherry Lane Music Publishing in 2009 marked BMG’s entry into the United States.[5]Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name Subsequent purchases included Evergreen Copyright Acquisitions in 2010,Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name Bug Music in 2011,Cite error: The opening <ref> tag is malformed or has a bad name and R2M Music in 2012.Cite error: The opening <ref> tag is malformed or has a bad name Although Bertelsmann explored acquiring EMI,Cite error: The opening <ref> tag is malformed or has a bad name EMI was ultimately split among Universal Music Group, Warner Music Group, and Sony/ATV Music Publishing.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name This division enabled BMG to acquire Mute Records (2012), Sanctuary Records (2013), along with publishing catalogs such as EMI Virgin Music and Famous Music UK from Sony/ATV.Cite error: The opening <ref> tag is malformed or has a bad name[6]

Transition to a group division

In 2013, KKR divested its shares in BMG to Bertelsmann, which then became the sole owner. Under the leadership of CEO Thomas Rabe, who played a pivotal role in BMG's growth as CFO, Bertelsmann reaffirmed its commitment to music as a core area for strategic expansion.

That same year, BMG began managing rights for prominent artists such as Robbie Williams and the Rolling Stones. The company broadened its catalog by acquiring various record labels, including Union Square Music—which distributes for Universal Music's ZTT Records and Stiff Records—along with Vagrant Music, Infectious Music (2014), S-Curve Records, and Rise Records (2015). Additional acquisitions in 2016 featured ARC Music and the catalog of The End Records. By purchasing Basement, BMG established a foothold in Brazil, a key market for Bertelsmann’s growth ambitions.

In 2016, BMG entered into a distribution partnership with Warner Music's Alternative Distribution Alliance, streamlining both physical and digital sales operations. That year also marked BMG's expansion into the Chinese market through collaboration with Alibaba, facilitating online distribution while securing intellectual property rights.

Initially part of Bertelsmann’s Corporate Investments division in 2015, BMG evolved into an independent division by 2016. Currently, BMG serves as a prime example of Bertelsmann’s approach to building and capitalizing on growth platforms.

Acquisition of BBR Music and launch of new labels

In 2017, BMG completed the acquisition of BBR Music Group, encompassing Broken Bow Records, Red Bow Records, Stoney Creek Records, Wheelhouse Records, and the publishing company Magic Mustang Music. Valued at over 100 million dollars, this transaction represented BMG's largest investment in recorded music to date. It significantly bolstered the company’s presence in the country music genre and secured a lasting position within Nashville’s music scene and the broader U.S. market.

In 2022, BMG introduced Tag8 Music, its first new British label since 2009, created in partnership with former Bros member Craig Logan and his management firm Logan Media Entertainment. The label's roster features established artists including Pixie Lott, Roachford, and Louise Redknapp. Tag8 achieved its inaugural chart success when Blue's album Heart & Soul entered the Official Albums Chart in November 2022.

By October 2023, BMG had formed a collaboration with Universal Music Group for physical distribution and assumed direct control over digital distribution of its catalog, thereby concluding its prior agreement with Warner Music. The switch to Universal for physical distribution was finalized by October 2024.

Corporate structure

BMG operates under its parent entity BMG Rights Management GmbH, a German limited liability company specializing in "marketing of music, as well as its development and delivery" across media platforms, live events, and other applications. The organization manages various subsidiaries and equity interests, including BMG Rights Management (Europe) GmbH. Its global footprint extends across Germany, Australia, Brazil, China, France, Italy, Spain, the United Kingdom, Benelux countries, the United States, Canada, and Scandinavia.

Key executives include Thomas Coesfeld (CEO), Mathis Wolter (CFO), Ama Walton (General Counsel and CHRO), and Ben Katovsky (COO). Founder Hartwig Masuch has been a member of Bertelsmann's Group Management Committee since 2013.

In 2018, BMG reported total revenues of €545 million. Revenue breakdown showed that rights and licenses contributed 91.1%, while products and merchandise accounted for 8.9%. Geographically, the United States generated 44.1% of income, followed by the United Kingdom at 24.7%, Germany at 6.3%, and France at 3.9%.

Business model

BMG distinguishes itself from leading competitors by integrating services commonly provided by both music publishers and record labels into a single, cohesive technology-driven platform. In recent years, the company has broadened its scope to encompass publishing services for film, television, and books.

Publishing

The publishing division at BMG oversees the management of songwriters' rights.

Production music

BMG holds an extensive collection of production music tailored for use in movies, TV shows, commercials, and various other media formats. Notable catalogs within this collection include MusicDirector (Talpa Music), Human Music, Music Beyond, X-Ray Dog, Beds & Beats, Valentino Production Music, Immediate Music, AXS Music, Altitude Music, and Must Save Jane.

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
  • BMG Chrysalis
    • The Echo Label
    • Go-Feet Records
    • MAM Records
  • Mute Records (pre-2010 catalogue)
  • Union Square Music
    • Salvo
    • Metro
  • Skint Records
    • Loaded Records
    • Skyblaze Recordings
  • Sanctuary Records Group
    • Castle Communications
    • Pye Records
    • Precision Records and Tapes
    • Transatlantic Records
    • Sugar Hill Records (hip hop label)
    • CMC International
    • Mayan Records
    • Neat Records
    • Noise Records
    • RAS Records
    • Trojan Records
      • Jet Records
      • Upsetter Records (Jamaican record label)
    • Urban Records
  • Countdown Media
    • Alshire/Somerset
    • Everest Records
    • Mediaphon
    • Dobre Records
    • SRP Records
    • Glove Music
    • Alto Records
  • RAM Records
  • RBC Records
  • 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
  • BMG Talpa Music (Netherlands)
  • BMG Production Music
  • Cheyenne Records
  • Intertwine (joint venture with Eshy Gazit)
  • Modern Recordings
  • Telamo
  • Renew Records
  • OM Records (joint venture with Olympique de Marseille)
  • Tag8 Music
  • Queenie Records

Awards

  • 2016, 2017, 2018: Awarded "Independent Publisher of the Year" by the American Society of Composers, Authors and Publishers
  • 2018: Honored at the "Production Music Awards" for BMG Production Music
  • 2018: Recognized as "Publisher of the Year" at the United Kingdom's A&R Awards

External links

  1. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :0
  2. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :7
  3. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :2
  4. ↑ 4.0 4.1 Cite error: Invalid <ref> tag; no text was provided for refs named :1
  5. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :4
  6. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named Virgin
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