BMG Signs Major Distribution Deal For China With Alibaba
March 30, 2015 at 11:38 AM (PT)
BMG has signed a wide-ranging digital distribution deal in CHINA with ALIBABA GROUP's digital entertainment business unit, one of the biggest mobile and Internet e-commerce companies in the world.
The agreement will not only significantly boost earnings by BMG artists and writers from the world’s most populous nation, but also give them a powerful ally in helping grow the legitimate music market in CHINA.
ALIBABA’s digital entertainment business unit will promote BMG writers and artists through channels such as its streaming apps XIAMI and TTPod. It will also monitor and take action against digital and mobile services who may infringe the rights of BMG clients.
The agreement includes digital rights to over 2.5m copyrights, including recordings from such artists as SCORPIONS, JEAN-MICHELE JARRE, BLACK SABBATH, KYLIE MINOGUE, BOYZ II MEN, SMASHING PUMPKINS and BRYAN FERRY, as well as rights in songs from the likes of BRUNO MARS, JOHN LEGEND, ROBBIE WILLIAMS, THE ROLLING STONES, AEROSMITH and WILL.I.AM.
The deal is the latest step in BMG's plan, unveiled 12 months ago, to make CHINA a priority territory for the world’s fourth largest music rights company barely six years after its launch in late 2008.
BMG CHINA Chief Investment Officer DORA YI commented. “This is a game-changing deal for BMG. ALIBABA is one of the most progressive and successful companies in CHINA and is the ideal partner for us as we begin to unleash the potential of BMG’s catalog here.”
ALIBABA digital entertainment business unit Pres. PATRICK LIU added: “We are delighted to join hands with BMG to develop a new business model that combines music with e-commerce in CHINA’s entertainment sector. Our rich experience in big data analysis will help us lead innovation in the music industry that ultimately enhances customer experience.”
The alliance with ALIBABA follows the announcement in NOVEMBER 2014 that BMG had struck a worldwide deal with leading CHINESE independent GIANT JUMP to manage its music publishing and recording rights both domestically and internationally (NET NEWS, 11/20/14).
BMG CEO HARTWIG MASUCH concluded: “Internet and particularly mobile media are quickly providing an answer to the music industry’s long time challenge of how to monetize the vast untapped potential of the CHINESE market. We are delighted to link with such a powerful and dynamic partner as ALIBABA.”