Bertelsmann-owned BMG has reported close to $1 billion in 2023 revenue. Photo Credit: Steffen Krinke
Can we finally call BMG a major label? With the Bertelsmann-owned music company’s revenue having approached $1 billion during 2023, ‘indie’ or ‘publisher’ may no longer be an apt descriptor for the business.
Berlin-based BMG’s financials came to light today, in the annual earnings report of its mentioned parent. According to the breakdown, BMG, operating 20 offices across 13 markets, generated €905 million ($980.48 million at the present exchange rate) during 2023, up about 4.6% year over year (YoY).
All but $3.25 million (€3 million) of the total derived from external customers, and by market, the vast majority of the sum, $878.15 million (€811 million), resulted from operations outside Germany. The European nation, boasting an expanding recorded music space, accounted for the remaining €94 million.
Behind the revenue total, BMG attributed 51.5% to the U.S., 12.8% to the U.K., 10.3% to Germany, 7% to France, 11.1% to other European nations, and the remaining 7.3% to all other countries.
By source, BMG placed 88.6% of its $980 million in 2023 revenue in the “rights and licenses” category, against 10.6% for “own products and merchandise” and the less than 1% balance in the advertising and services categories.
Meanwhile, the professional home of Jennifer Lopez said its 2023 adjusted operating EBITDA was nearly flat YoY at $210.08 million (€194 million). Adjusted operating EBITDA “less special items” came in at negative $38.98 million (-€36 million), the document shows.
Notably, the well-versed catalog investor BMG dropped $245.80 million (€227 million) on investments in 2023, including $213.31 million (€197 million) on 30 catalog purchases, the resource shows. While nothing to scoff at, the catalog figure decreased substantially from 2022’s $411.50 million/€380 million. (In a point that’s worth keeping front of mind when it comes to IP acquisitions generally, only about one-third of these deals seem to have been announced publicly.)
Breaking down the 2023 catalog-purchase sum by region, BMG attached $92.04 million (€85 million) to deals with U.S. rightsholders including Paul Simon, $67.13 million (€62 million) to pacts for music IP in the U.K. (The Hollies), $31.40 million (€29 million) to plays for German song rights (Nena and Michael Münzing/Snap!), and the remaining $22.74 million (€21 million) to catalogs whose original owners are based in different countries (Jet, Martin Solveig, and more).
When 2023 wrapped, Universal Music Group-partnered BMG had 1,143 employees, the report shows. Bigger picture, it’ll be worth closely following the company’s moves throughout the remainder of 2024, on the heels of a far-reaching recalibration, complete with promotions, layoffs, and a split from Warner Music Group’s ADA. Bertelsmann head Thomas Rabe recently spelled out to the Financial Times that BMG would consider “joining forces with another music company” in order “to significantly grow.”
