German music management group BGM announced a partnership with US investment firm KKR on Wednesday, showing a move to acquire streaming rights.
The agreement does not mean the establishment of a new joint venture or the acquisition of shares, the two companies said in a statement.
BMG Rights Management was created in 2008 to allow German parent company Bertelsmann to invest in new music rights after selling BMG Music Publishing and its vast catalog to Universal in 2007.
The group already manages the rights to the works of several major artists such as David Bowie, Bruno Mars, Lenny Kravitz and Kylie Minogue.
The two entertainment groups have already had a long-standing relationship-KKR purchased 51% of BMG Rights Management’s capital in 2009 before Bertelsmann purchased from KKR in 2013.
“The rationale behind this is the global increase in demand for high-quality media content,” the group’s statement said.
The move to acquire some of the most popular contemporary music catalogs has been going on for years, most of which are now under the control of some major record labels.
After a difficult period in the mid-2000s, the music industry is slowly recovering with the advent of streaming, which has become a major source of income for music catalog rights holders.
Groups such as Concord, Hipgnosis and Primary Wave have also recently invested in the market as a means of acquisition backed by strong investors.
Universal Music announced that it had acquired the entire Bob Dylan catalog in early December for an estimated $ 300 million by the New York Times.
BMG itself acquired rights to Fleetwood Mac’s work from band co-founder Mick Fleetwood in January.
BMG And KKR Team Up To Purchase Music Rights Source link BMG And KKR Team Up To Purchase Music Rights