In January, BMG CEO Thomas Coesfeld told MBW how company Preparing for “tectonic shifts” affecting the music rights business.
Part of these preparations include changing its digital and physical music distribution arrangements; focusing purely on music publishing and recording; and reducing overhead costs.
The executive also pledged to “double down” BMG’s investment in the U.S., something he reiterated just this week, reorganizing its A-list music recording team, led by Jon Loba, and working with Republic Records on a new Jelly Roll The album sealed the deal.
Berlin-based Koesfeld traveled to the United States in person this week to outline BMG’s market positioning in front of great figures in the M&A world.
On Tuesday (June 11), Coesfeld participated in a keynote fireside chat hosted by NMPA boss David Israelite at the second annual Music Investor Conference in New York, where he highlighted BMG’s investment strategy.
In a conversation with Israelite, Koesfeld explained that “an appreciation for the art of storytelling and advocating for creators’ rights has always been ingrained in the DNA of BMG and our parent company Bertelsmann”.
Cosfield also told the investor conference audience that while BMG has the “financial strength of a professional,” the company’s “unique superpower and advantage is our agility, which is driven by our scale and the entrepreneurial spirit of our team.”
MBW agreed not to report on any conversations at the annual Music Investor Conference, in compliance with the day’s rules. However, BMG CEO Thomas Coesfeld gave us personal permission to use the quotes in this article.
BMG’s chief executive appeared in New York this week after saying at the event that this was the company’s “best quarter ever in the first quarter of 2024.” He noted that BMG “plans to continue building on this momentum.”
BMG’s annual revenue in fiscal year 2023 reached 905 million euros ($979 million), an increase from the same period last year Annual increase of 4.6%.
BMG’s operating EBITDA in 2023 is €194 million ($210 million)in line with the previous year’s EBITDA result 195 million euros.
During Tuesday’s keynote, Cosfield outlined the company’s new “BMG Next strategy,” explaining that BMG “positions itself as a future-focused music company that uniquely meets the evolving needs of artists and songwriters.” .
Part of BMG’s Next strategy was implemented this week through a new US Frontline Recorded organizational structure, which the company says is “designed to provide BMG artist partners with more tailored expertise and services.”
After this reorganization, Jon Loba, President of BMG North America Frontline Recordings, will serve as President of Frontline Recordings Americas.
“BMG is committed to investing more in the U.S. market and is willing to work with the right investors,” Cosfield told an audience in New York.
“We are the ideal partner. We have the capital to purchase the intellectual property rights and the team and technology to maximize the value of those rights.
Thomas Cosfield, BMG
In a fireside chat with David Israelite, Cosfield delved into BMG’s investment strategy, saying: “We are the ideal partner. We have the capital to buy the intellectual property rights, and we have the team and technology to maximize those rights. value.
He added: “We strive to be the trusted home for songwriters and artists for a lifetime of repertoire. We’re not here to maximize short-term profits, but for sustainable lineup building and growth.
The conversation also turned to the current state of the music rights market and the role he thinks BMG can play in it.
“Due to changes in interest rates, many people enter the market believing that music rights are a great asset, but don’t know how to actively manage these incredible songs,” Cosfield said.
He added: “At BMG we can collaborate on investments and help actively manage these rights.”
In November, just four months after becoming BMG CEO, the company unveiled its “growth plans” and noted that it would begin making “significant investments” in technology and its myBMG platform for songwriters and artists.
“We have significantly increased our investment in technology to enhance our future operating capabilities,” Cosfield explained in New York on Tuesday.
In March this year, Thomas Rabe, CEO of BMG parent company Bertelsmann, said in an interview, financial times reported that Bertelsmann is considering growing its music division through mergers with rivals or “breakthrough investments”.
“BMG could be a breakthrough investment and an opportunity to join forces with competitors,” Rabe said.
“If there was an opportunity to significantly grow BMG by joining forces with another music company, we would consider it.”global music business
