From Musically · · 1m 10s
Post-merger BMG doesn’t see itself as 'the fourth major'
BMG’s new combined company rejects being the fourth major music label after merger with Concord.
In brief
BMG’s new combined company rejects being the fourth major music label after merger with Concord. BMG and Concord’s merged entity calls itself a major music publisher, not a fourth major label, due to different business models and focus on publishing over recorded music. Originally reported by Musically.
BMG and Concord merger
BMG and Concord have merged into one company targeting $2.5bn annual revenue.
Not the fourth major
BMG’s new company does not see itself as the fourth major music label behind UMG, Sony Music, and WMG.
Business model difference
BMG focuses on music publishing, not recorded music, with a larger publishing business than recorded music.
David Israelite’s comment
David Israelite from NMPA called BMG’s merger 'fantastic' for advocating music publishing without focusing on recorded music.
“This is fantastic: this means that there is going to be someone who’s out there who’s advocating for music publishing, and is not necessarily sitting there going ‘well, I wonder what the other side of my business is going to say’”
50-50 split push
Publishers now demand a 50-50 split in AI licensing deals with music technology companies.
Catalogue valuation challenges
Catalogue valuations require understanding cashflows, one-off deals, and human factors like artist ownership.
“Interest rates are going up. Surely that means that multiples will be coming down”
Private equity sell-off risk
Private equity firms may face sell-offs as interest rates rise and their investments mature.
The short version
BMG and Concord’s merged entity calls itself a major music publisher, not a fourth major label, due to different business models and focus on publishing over recorded music.
