BMG has agreed a deal to accumulate Germany’s largest unbiased report label, Telamo, a specialist in Schlager music.
Sources inform MBW that the acquisition will roughly double BMG’s annual recorded music revenues in Germany, the world’s fourth largest music market.
In response to figures revealed in BMG father or mother Bertelsmann‘s annual report earlier this 12 months, BMG generated EUR €40 million in Germany in 2021, throughout each its recorded music and music publishing operations.
Recordings account for round half of BMG’s revenues in Germany.
BMG’s mixed recorded music market share post-Telamo acquisition will probably be 8.5% in Germany, says the corporate, creating “one of many largest German label divisions throughout all genres”.
BMG isn’t being drawn on the price of the Telamo deal, but it surely did verify in a launch at this time (August 3) that it’s “BMG’s largest label funding for the reason that acquisition of Nashville-based unbiased nation music powerhouse BBR Music Group in 2017”.
That BBR acquisition cost BMG simply over USD $100 million, suggesting that the acquisition value of Telamo is comfortably into the eight figures.
Since that Damaged Bow deal, BMG has acquired labels resembling World Circuit Data, house to Buena Vista Social Membership.
BMG’s newest acquisition consists of not simply Telamo and its labels, but additionally digital providing Schlager für Alle, which has over 1.7 million customers through Facebook, Instagram, YouTube, and TikTok.
The transaction is topic to the approval of the Austrian Federal Competitors Authority.
Topic to that approval, the acquisition is predicted to shut by the tip of August.
Eight of Germany’s High 25 Schlager/Deutschpop artists are signed to Telamo. Greatest-selling artists embrace Giovanni Zarrella, Eloy de Jong, Marianne Rosenberg, Ross Antony, Die Amigos, Thomas Anders and Florian Silbereisen, Daniela Alfinito, and Fantasy amongst many others.
Telamo was based in 2012 by Kathleen Herrmann, Ken Otremba, and Marko Wünsch.
All 29 workers in addition to Managing Director Ken Otremba, will stay with the corporate.
Telamo will proceed to take care of its places of work in Munich and Berlin. Kathleen Herrmann and Marko Wünsch will proceed to behave as consultants for Telamo.
Maximilian Kolb, BMG, EVP Repertoire & Advertising Continental Europe, mentioned, “Over the course of the previous ten years,
“Telamo has skillfully taken Schlager into the digital age. We’re thrilled to welcome Telamo’s fantastic artists and naturally its workforce. BMG and Telamo share the identical values of respect for artists. The mixture of the 2 of us could have a significant impression on the German language music market.”
Telamo founder Ken Otremba mentioned, “Since our inception, our purpose has been to create the optimum and most fashionable situations for our artists. We’re proud and excited now to welcome our artists to a brand-new chapter. Telamo will preserve its earlier partnerships however will now provide entry to extra alternatives – each home and worldwide.”
“This transaction redraws the map of the German music trade, creating a brand new drive outdoors the standard enterprise.”
Dominique Casimir, BMG
Kathleen Herrmann mentioned, “As founders of Telamo we’re satisfied the very best future for the corporate is in collaboration with BMG. We very a lot look ahead to working with the BMG workforce and the broader BMG community.”
Entrepreneur Marko Wünsch of German consulting and expertise firm Artcom mentioned, “We’ve been working along with Bertelsmann firms for 25 years now.
“BMG had been the primary to assist us launch merchandise. The primary artist was Elvis Presley, adopted by Ronny – nonetheless a longtime vendor at this time.
“With Ken, previously with BMG Ariola, and Kathleen we helped develop artists’ careers together with Fantasy. We all know one another nicely and we all know that the brand new BMG is the proper companion for our future.”
BMG’s Chief Content material Officer Dominique Casimir mentioned, “This transaction redraws the map of the German music trade, creating a brand new drive outdoors the standard enterprise.
“We anticipate robust synergies each inside the Bertelsmann Group and with our worldwide companies.”
With a 15% market share in Germany, Schlager – usually described because the German market’s reply to nation music – is the preferred style within the territory after pop/pop rock (33%), adopted by rock/onerous rock/heavy metallic (13.9%), pop oldies (9.4%) and dance/electro (8.6%).
Since re-entering the recordings market in Germany, BMG has scored success with artists together with Max Giesinger, Kontra Okay, LINA, Stefanie Heinzmann, Nils Frahm, Adel Tawil, Anna Loos, Cypress Hill, Trettmann and Kitschkrieg.
Within the interval between 2009 and 2017, BMG acquired report firms together with Sanctuary, Union Sq., Mute, Vagrant, Infectious, Rise, RBC and BBRMG.
BMG CEO, Hartwig Masuch, indicated last month that BMG father or mother Bertelsmann may make investments as a lot as USD $1 billion in 2022 to fund BMG’s acquisition of music catalog rights.
That information adopted two important catalog acquisitions in lower than per week by BMG: Simple Minds and now Jean-Michel Jarre.
in 2022 to date, BMG’s 30 catalog rights acquisitions have additionally included Primal Scream, John Lee-Hooker and extra.
In response to native commerce physique BVMI, Germany’s recorded music trade generated greater than USD $2 billion for the second straight 12 months in 2021.
BVMI reports that the German market’s revenues from bodily music gross sales and streaming generated a complete of €1.96 billion final 12 months (roughly $2.2bn), a rise of 10% year-over-year in comparison with 2020.Music Enterprise Worldwide
