Sony BMG Music Entertainment was a global recorded music company, which was a 50–50 joint venture between the Sony Corporation of America and Bertelsmann AG. The venture’s successor, the again-active Sony Music Entertainment, is 100% owned by the Sony Corporation of America.
Sony BMG Music Entertainment formed in 2004 when Sony Music Entertainment and Bertelsmann Music Group merged.
Sony BMG Music Entertainment formed in 2004 when Sony Music Entertainment and Bertelsmann Music Group merged.
With his new position Mr. Schmidt-Holtz will have overall management responsibility for the company and be based in New York. Mr. Lack, as Chairman of the Board, will lead the company's public policy and industry , and operating responsibility and oversight for the theatrical film business of Sony BMG, and be based in New York.
The joint venture SONY BMG MUSIC ENTERTAINMENT was formally announced on August 5, 2004. It is 50% owned by Bertelsmann and 50% owned by Sony Corporation of America. It encompasses some of the most influential and successful record labels in the world and a wide variety of recording artists, and operates worldwide. Schmidt-Holtz and Lack were instrumental in joining together to begin the negotiations and ultimately implement the joint venture.
Mr Schmidt - Holtz said...
"I am honored to be asked to lead Sony BMG and to take us forward as a leader in music and entertainment. I know a deep commitment to our artists and our shareholders is shared by our employees worldwide, and by working together we will continue to grow Sony BMG as a creative powerhouse." said Rolf Schmidt-Holtz, CEO, SONY BMG MUSIC ENTERTAINMENT
1. The subsidiary labels that SONY BMG own are one of the Big Four music companies, and includes ownership and distribution of recording labels such as Arista Records, Columbia Records, Epic Records, J Records, Jive Records, RCA Victor Records, RCA Records, Legacy Recordings, Sonic Wave America, and others.
2. The music industry is transitioning from a single product model to a different service model licensing, broadcasting, marketing, on-demand services. Bertelsmann sold its stake because it's a traditional, horizontally-integrated media company. Sony bought it because it's a vertically-integrated company well equipped to take advantage of it's inter-divisional synergies. that this is a victory for vertical integration in a period of diversifying revenue opportunities for music.
Bertelsmann is a content and distribution company. Besides the record label, its main holdings are book and magazine publishers and broadcasters. They make money by producing and distributing information, which is eventually paid for by advertisers and shoppers.
3.Sony profits from its money manufacturing consumer electronics, producing films, and licensing its formats e.g. Blu-ray, Playstation, and even owns some retail. Even though the company does profit from recorded music, its music division can be an asset for the company. This is because the music can be licensed on friendly terms to Sony's movies, games, and distribution portals, and can be used to support new technology formats.
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