BMG Signs Major Distribution Deal For China With Alibaba’s Digital Entertainment Business Unit
New model music company BMG has signed a wide-ranging digital distribution deal with Alibaba Group’s Digital Entertainment business unit. Alibaba Group is one of the biggest mobile and internet e-commerce companies in the world.
The agreement will not only significantly boost earnings by BMG artists and writers from the world’s most populous nation, but also give them a powerful ally in helping grow the legitimate music market in China.
Alibaba’s Digital Entertainment business unit will promote BMG writers and artists through channels such as its streaming apps Xiami and TTPod. It will also monitor and take action against digital and mobile services who may infringe the rights of BMG clients.
The agreement includes digital rights to over 2.5m copyrights, including recordings from such artists as Scorpions, Jean-Michel Jarre, Black Sabbath, Kylie Minogue, Boyz II Men, Smashing Pumpkins and Bryan Ferry, as well as rights in songs from the likes of Bruno Mars, John Legend, Robbie Williams, the Rolling Stones, Aerosmith and will.i.am.
The deal is the latest step in a plan unveiled 12 months ago to make China a priority territory for BMG, which is already the world’s fourth largest music rights company barely six years after its launch in late 2008.
Dora Yi, Chief Investment Officer of BMG China, said, “This is a game-changing deal for BMG. Alibaba is one of the most progressive and successful companies in China and is the ideal partner for us as we begin to unleash the potential of BMG’s catalogue here.”
Patrick Liu, President of Alibaba’s Digital Entertainment business unit, said, “We are delighted to join hands with BMG to develop a new business model that combines music with e-commerce in China’s entertainment sector. Our rich experience in big data analysis will help us lead innovation in the music industry that ultimately enhances customer experience.”
The alliance with Alibaba follows the announcement in November 2014 that BMG had struck a worldwide deal with leading Chinese independent Giant Jump to manage its music publishing and recording rights both domestically and internationally.
BMG CEO Hartwig Masuch said, “Internet and particular mobile media are quickly providing an answer to the music industry’s long time challenge of how to monetize the vast untapped potential of the Chinese market. We are delighted to link with such a powerful and dynamic partner as Alibaba.”
About BMG
BMG is an international company focused on the management of music publishing and recording rights. BMG’s services cover the entire range of rights administration, development, and exploitation, placing the needs of songwriters and artists at the heart of its business model. Since its launch in 2008, BMG has established a presence in eight core music markets and now represents the rights to around 2.5 million songs and recordings, including the catalogues of Chrysalis, Bug, Virgin, Mute, Sanctuary, Primary Wave and Talpa Music, as well as many prominent artists and songwriters attracted by its service-orientated model. BMG is a wholly-owned subsidiary of international media company Bertelsmann, whose group interests embrace broadcasting and TV production (RTL Group), books (Penguin Random House) and magazines (Gruner + Jahr), media services (Arvato) and print (BePrinters). In the United States of America, the United Kingdom and Scandinavia the company trades under the name BMG Chrysalis, in Benelux under the name BMG Talpa Music.
