Global music powerhouse BMG is ready to steer its booming streaming division independently after parting ways with long-time distribution partner Warner Music Group. With streaming accounting for over 80 billion plays annually for BMG’s catalog of half a million tracks, the company believes it is time to captain these lucrative waters directly.
This strategic change marks a milestone for BMG as the first new major label of the modern era to internally manage its core digital business. CEO Thomas Coesfeld views the insourced distribution as a opportunity to optimize BMG’s relationships with leading streamers like Apple Music and Spotify. Bringing this business in-house will empower BMG to leverage data and market insights to better advocate for their roster of iconic artists.
The decision follows BMG and Warner Music’s mutual agreement to end their distribution deal after years of fruitful collaboration. With BMG graduating to self-sufficiency, Warner can sharpen its focus on cultivating new partnerships and investments. Warner Music CEO Robert Kyncl notes they are proud to have helped BMG ascend to a scale sustaining independence and wish them continued success navigating streaming’s rising tides.
Coesfeld paid tribute to Warner, praising their supportive role in tripling BMG’s revenues over seven years. While third-party distribution served BMG well early on, over 80 billion streams yearly affords BMG optimum control. With full command of its own streaming ship, BMG is primed to chart an even more profitable course.
