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BMG signs new three year deal with GEMA to license digital services in 38 european countries

New model music company BMG and the German collective society GEMA are pleased to announce that they have signed a new three year deal to maximise income in Europe from digital services for its US and UK songwriters.


The agreement with one of Europe’s biggest collection societies, Germany’s GEMA, will see BMG continue to licence its Anglo-American repertoire to digital services across Europe through GEMA subsidiary ARESA.

It means digital services can secure licences to reach 531m people across 38 countries in a single agreement.

Since it began licensing European rights through ARESA in July 2012, BMG has licensed more than 40 significant digital services across Europe, including the biggest download retailer (iTunes), the biggest subscription streaming (Spotify) and the biggest ad-supported streaming operator (YouTube).

ARESA currently represents rights in over 900,000 songs by Anglo-American writers, including such hits as:

  • ‘All Of Me’ co-written by BMG writer John Legend (performed by John Legend);
  • ‘Try’ written by BMG writers busbee and Ben West (performed by Pink);
  • ‘Locked Out Of Heaven’ co-written by BMG writer Bruno Mars (performed by Bruno Mars);
  • ‘One Way Or Another’ by BMG writers Nigel Harrison and Deborah Harry (performed by Blondie, One Direction);
  • and ‘Budapest’ by BMG writers George Ezra and Joel Pott (performed by George Ezra).

BMG CEO Hartwig Masuch said, “BMG is determined to ensure songwriters are able to make the most of the revenue opportunities of the digital age. That means having a lean and efficient licensing operation and a state-of-the art administrative back-end. The combination of ARESA’s nimble licensing team and GEMA’s significant infrastructure is a significant benefit to our writers, and the ability to license access to more than half a billion people in a single deal is a big plus for licensees.”

Harald Heker, Chairman of GEMA's Executive Board, said, “The combination of BMG, one of the world’s fastest-growing international music publishers, and GEMA, one of the world’s most successful collection societies in terms of per capita collections, is a powerful one. We are able to offer a level of speed, transparency and efficiency which would otherwise simply be impossible.”

ARESA is a so-called Option 3 vehicle, based on a recommendation from the European Commission designed to increase competition among collection societies. Under an Option 3 structure, publishers withdraw the European licensing of Anglo-American repertoire to digital services from individual collection societies and centralise them under one roof.

BMG SVP Business & Legal Affairs Goetz von Einem said, “There are significant benefits in aggregating rights through ARESA. We get greater transparency. We can enforce more consistent data standards. And we can account more quickly to our songwriters.”

GEMA Director Broadcasting and Online Thomas Theune said, “We are delighted to extend our successful collaboration with BMG, delivering value for their songwriter clients, simplifying the licensing process and helping support the development of the digital music business in Europe.”

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.
www.bmg.com

About GEMA
GEMA represents in Germany the copyrights of more than 68,000 members (composers, lyricists, and music publishers), as well as over two million copyright holders all over the world. It is one of the largest societies of authors for musical works.

 

Enquiries:
For BMG
Steve Redmond
email: steve.redmond@bmg.com, Phone: +44 7770 924720

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