The Closing of the Net  "original and valuable"  Times Higher Education

BMG, the recently relaunched music publishing arm of Germany's Bertelsmann, has €250 to spend on buying up catalogues of music rights. What can  this tell us about the state of the music industry?

 

According to reports in the Financial Times, BMG*, the recently relaunched music publishing arm of German media empire Bertelsmann, has €250 million  in venture capital funding. It is seeking to spend this money on catalogues of rights to composers and songwriters in the US and the UK. In doing so, it hopes to challenge the might of the 'big four' music publishers who currently control the music market. 

 

The story here appears to be  quite a different story from the one that the music industry tells to politicians and policy-makers.   

It is interesting that in times when

venture capital is difficult to get, Bertelsmann has managed to obtain such a large sum for buying music rights.

According to the FT, music publishers are considered to have 'strong and predictable cash flows' which 'make them attractive investments'.  The FT also points out that the financial market crash of 2008 resulted in a reduced valuation of music catalogues, which means that there are some good deals available now for those who have cash.

 

Bertelsmann has snapped up a company called Cherry Lane Publishing, which includes in its catalogue the lucrative  rights to Elvis Presley and the Black Eyed Peas. 

 

How should we regard such deals in the context of the copyright enforcement debate? It begs for analysis of the real impact of the digital environment on the music industry. And it raises a key  question as to  why such companies  deserve State-sponsored protection.

 

 

Sources: 

Financial Times  Sweet sound of music still benefits BMG  

By Gerrit Wiesmann in Berlin Published: May 2 2010 18:19

Financial Times BMG eyes snapping up its UK rivals

By Gerrit Wiesmann in Berlin Published: May 2 2010 17:46

 

*This new BMG should be differentiated from the old joint venture with Sony, known as Sony BMG - Bertelsmann sold its share in that venture to Sony, and the new BMG  is in fact a rival to Sony BMG. 

This article is licensed under a Creative Commons Attribution Non-commercial-Share Alike 2.5 UK:England and Wales License. http://creativecommons.org/licenses/by-nc-sa/2.0/uk/ It may be used for non-commercial purposes only, and the author's name should be attributed. The correct attribution for this article is: Monica Horten (2010) BMG goes shopping for music rights with €250 million  http://www.iptegrity.com 5 May 2010 

 

 

 

 

 

 

The Copyright Enforcement Enigma tells the story of the 2009 Telecoms Package and how the copyright industries tried to hijack it.

'accurate and absorbing account of the story of the Telecoms Package' -Journal of International Commercial Law and Technology

'...a must read for those interested in knowing in depth about copyright enforcement and Internet.' -Journal of Intellectual Property Rights.  

Read more  

Ask your library to get it!

Order direct from the publisher.

Go to   Amazon

Copyright Enforcement Enigma launch, March 2012

European Parliament launch for Copyright Enforcement Enigma

Don't miss Iptegrity! Iptegrity.com  RSS/ Bookmark      

Iptegrity.com is the website of Dr Monica Horten, European expert on Internet policy and Visiting Fellow at the London School of Economics & Political Science. She is an independent expert on the Council of Europe Committee on Cross-border flow of Internet traffic and Internet freedom (MSI-INT). She was shortlisted for The Guardian Open Internet Poll 2012. Iptegrity  offers expert insights into Internet policy. Iptegrity has a core readership in the Brussels policy community, and has been cited in the media. Please acknowledge Iptegrity when you cite or link.  For more, see IP politics with integrity

Iptegrity.com is made available free of charge for  non-commercial use, Please link-back & attribute Monica Horten. Thank you for respecting this.

Contact  me to use  iptegrity content for commercial purposes

The politics of copyright

A Copyright Masquerade - How corporate lobbying threatens online freedoms

'timely and provocative' Entertainment Law Review

Paperback and Kindle and Epub formats.

Available from all good online bookstores or get it from the publisher Zed Books  direct:

Amazon UK

Amazon USA