Bertelsmann Music Group
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|Fate||Assets sold to Sony Corporation of America|
|Successor||Sony Music Entertainment
Universal Music Publishing Group
BMG Rights Management
|Defunct||October 1, 2008|
|Headquarters||New York City, New York, United States|
Bertelsmann Music Group (abbreviated as BMG) was a division of Bertelsmann before its completion of sale of the majority of its assets to Japan's Sony Corporation of America on October 1, 2008. It was established in 1987 to combine the music label activities of Bertelsmann, which had recently acquired RCA Records and its associated labels. It consisted of the BMG Music Publishing company, the world's third largest music publisher and the world's largest independent music publisher, and the 50% share of the joint venture with Sony Music Entertainment, Sony BMG Music Entertainment (Sony BMG).
The joint venture with Sony Music was set up in August 2004. It reduced the Big Five record companies to the Big Four record companies. At that time, the company had a 21.5% share in the global music market. Sony Music and BMG remained separate in Japan, although BMG Music Japan was wholly owned by Sony BMG.
On March 27, 2006, the New York Times reported that Bertelsmann was looking to raise money by leveraging some of its media assets, and that executives from both companies were in talks about possibly altering the current venture. Bertelsmann sold its 50% share of Sony BMG to Sony Corporation of America for a total of $1.5 billion, and the company was renamed back to Sony Music Entertainment Inc.
While officially withdrawing from the business of recorded music, Bertelsmann continued its strong presence in other areas of the music industry by establishing BMG Rights Management, which specializes in music rights management and by representing artists and authors. It is focused mainly in BMG's European stronghold markets. The basis of the company was formed through BMG's decision to withhold selected European music catalogues from the former Sony BMG joint venture and the BMG Publishing businesses.
Also kept separate from the acquisition by Sony Corporation of America was Sony BMG's wholly owned and operated BMG Japan. Sony Music Japan remained independent from the Sony BMG joint venture, therefore BMG and Sony labelling were kept separate in Japan under the venture. During Sony BMG's buyout, BMG Japan was instead picked up by Sony Music Entertainment Japan. It briefly continued to operate as a distinct entity until a reorganization in early 2009 folded the company into Sony Music Japan.
Executive Management Bertelsmann Music Group
Office of the Chairman
Rolf Schmidt-Holtz, Chairman and Chief Executive Officer, Chief Creative Officer and Member of the Management Board of Bertelsmann AG
Michael Smellie, former Chief Operating Officer COO
Tim Prescott, Executive Vice President, Chief Marketing Officer CMO
Joe Gorman, Senior Vice President, Chief Financial Officer CFO
Patrick Reilly, Vice President, Corporate Communications
Ira Sallen, Senior Vice President, Human Resources
Tim Bowen, Chairman, UK and Ireland, Australia/New Zealand/South Africa
Clive Davis, Chairman and Chief Executive Officer, BMG North America CEO
Nicholas Firth, Chairman, BMG Music Publishing Worldwide, Chairman, BMG Classics, Executive Vice President, Corporate Operations
Charles Goldstuck, President and Chief Operating Officer, BMG North America COO
Jordan Katz, Executive Vice President and General Manager, BMG Distribution
Maarten Steinkamp, President, BMG International and Germany/Switzerland/Austria
Hidehiko Tashiro, President and Chief Executive Officer, BMG Japan CEO
Christopher Fulgar, President, for OPM Artist of BMG Records (Pilipinas) Inc.
Barry Weiss, President and Chief Executive Officer, Zomba Label Group CEO
Now part of Sony Music Entertainment after the buyout of Bertelsmann AG's 50% stake in Sony BMG.
BMG Music Publishing
BMG Music Publishing, which was not part of the Sony BMG merger, was a business of the Bertelsmann Music Group until it was sold to Universal Music Group for €1.63 billion in 2007. Universal then folded the company into Universal Music Publishing Group, and the BMG name was retired. The company was headquartered at 245 Fifth Avenue, 8th Floor New York, New York 10016 and had operations in 36 offices in 25 countries.
BMG Music publishing controlled over one million copyrights. Writers/artists signed to the company included: Anastacia, Jaguares, Diana Yukawa, Alcazar, Gloria Trevi, Angélica María, Dido, Avril Lavigne, Lee Ryan, Ai Uemura, Julieta Venegas, The Troubadours, Shakira, Powderfinger, Nelly, Britney Spears, Rammstein, Modern Talking, R. Kelly, Deicide, Shania Twain, Nikki Webster, Ville Valo, Christina Aguilera, Kelly Clarkson, Clannad, Linkin Park, Maroon 5, Mayra Verónica, Backyard Babies, Hipster Daddy-O and the Handgrenades, Soda Stereo, Gustavo Cerati, Keane, HARD-Fi, Justin Timberlake, Joss Stone, Elvis Costello, Paul Weller, Sara Evans, Ne-Yo, Take That (1991-1996), Chad Hugo, Westlife, The Wanted, D-Pryde and Luke Friend.
The company's songwriters wrote chart-topping hits for Mariah Carey, The Black Eyed Peas, Kenny Chesney, The Game, Mario, Rascal Flatts, No Doubt, Thomas Anders, Jessica Simpson and 50 Cent as well as legends like Bob Dylan, Elvis Presley, Frank Sinatra and Roselyn Sánchez.
BMG Music Publishing was the global leader in Classical music and was number one in Contemporary Christian music.
Through international subpublishing deals, BMG Music Publishing represented the catalogues of Famous Music Publishing, Walt Disney, Leiber & Stoller, Fremantle Media, Pete Waterman, and Malaco Records in various territories.
Brentwood-Benson Music Publishing is BMG Music Publishing's Christian publisher and owns over 60,000 copyrights.
BMG Music Publishing and its assets have now been completely absorbed and folded into Universal Music Publishing Group.
BMG Rights Management
After Sony bought out Bertelsmann's share in Sony BMG, Bertelsmann was allowed to keep the rights to several recordings from the former joint venture. These songs served as the foundation to BMG Rights Management.
BMG Rights Management now serves as a division within Bertelsmann and as a replacement to the defunct Bertelsmann Music Group.
CD price fixing
Between 1995 and 2000 music companies were found to have used illegal marketing agreements such as minimum advertised pricing to artificially inflate prices of compact discs in order to end price wars by discounters such as Best Buy and Target in the early 1990s.
A settlement in 2002 included the music publishers and distributors; Sony Music, Warner Music, Bertelsmann Music Group, EMI Music and Universal Music. In restitution for price fixing they agreed to pay a $67.4 million fine and distribute $75.7 million in CDs to public and non-profit groups but admitted no wrongdoing. It is estimated customers were overcharged by nearly $500 million and up to $5 per album.
- "Universal to buy BMG publishing". News.bbc.co.uk. September 6, 2006.
- Stephen Labaton (2000-05-11). "5 Music Companies Settle Federal Case On CD Price-Fixing". The New York Times. Retrieved 2016-04-26.
- David Lieberman (2002-09-30). "States settle CD price-fixing case". USA Today. Retrieved 2016-04-26.