BMG CEO Thomas Coesfeld is wasting no time in implementing huge changes at the company.
The company’s new boss recently announced that BMG will take control of its streaming business, following a long partnership with Warner Music’s ADA.
While BMG is ending its association with Warner Music, it has now formed a significant new partnership with Universal Music Group.
BMG and UMG have announced the formation of an alliance under which the companies will explore a range of collaborative initiatives to further expand opportunities for BMG-signed artists around the world.
BMG is the fourth largest music company globally behind the three majors. In the UK, BMG is No.4 in terms of recorded music market share, ahead of Beggars Group.
The first project under this alliance will be moving the distribution of physical formats of BMG’s music – including vinyl and CD for thousands of BMG-signed artists – to UMG’s Commercial Services division, which has operations in 60 countries covering more than 200 markets.
The transition of physical products to UMG is expected to commence in the second quarter 2024, and will be fully transitioned by the end of 2024. Distribution in Europe is currently via ADA/Arvato.
UMG’s scale, technology and commitment promises to further expand opportunities for BMG-signed artists around the world
Further collaborations between BMG and UMG are already under discussion, from exploring shared positions on industry matters to joining forces in adjacent business lines.
BMG CEO Thomas Coesfeld said: “Our alliance with UMG is a significant step to further enhance our service to BMG-signed artists. We are delighted to partner with UMG, the world leader in music-based entertainment on our thriving physical recorded music business. Their scale, technology and commitment promises to further expand opportunities for BMG-signed artists around the world.”
Sir Lucian Grainge, chairman and CEO of Universal Music Group, said: “BMG has brought a fresh vision to the music business, and we look forward to partnering with BMG on a variety of initiatives to provide greater opportunities to artists and our respective companies.”
BMG’s recordings catalogue comprises around half a million tracks and the work of artists including Kylie Minogue, Jelly Roll, Lainey Wilson, AJR, Jason Aldean, Rick Astley, Black Sabbath, Buena Vista Social Club, Cro, 5 Seconds Of Summer, Max Giesinger, Andy Grammar, George Harrison, Iron Maiden, The Kinks, Dustin Lynch, Mecano, Mötley Crüe, Motörhead, Nena, Rita Ora, Louis Tomlinson, and many others.
BMG’s recorded music business has tripled its revenues over the past seven years.
Successful artist campaigns at present include UK chart-topper Kylie Minogue (Tension), Jelly Roll (Whitsitt Chapel), Rita Ora (You & I) and Lainey Wilson (Bell Bottom Country), and with releases to come from artists including Jason Aldean, Jennifer Lopez, Chief Keef, Spiritbox and Mötley Crüe.
BMG is currently chasing the UK No.1 with Rick Astley’s Are We There Yet? album.