BMG has announced plans to handle its digital distribution in-house, having “agreed to part ways” with its existing partner, WMG subsidiary ADA.
The nature of distribution being what it is, this is not a clean break. The transition will take place over the coming months, starting with Spotify and Apple Music at the end of this year.
“Taking direct control of our relationships with streaming services is a major leap forward in our mission to offer artists the most effective and efficient service,” said CEO Thomas Coesfeld, who took over at the start of July.
“The new set-up will enable us to better market, service and advise our great artists and will further improve BMG’s relationship with key digital and physical partners.”
BMG will not be taking its physical distribution in-house, but said that it will announce a new outsourcing deal for that “shortly”.
The company said that it expects to generate more than 80bn streams from its catalogue this year. In the first half of 2023, digital accounted for 71.6% of its recordings revenus.
The messaging around the parting of ways with ADA is firmly amicable, with WMG boss Robert Kyncl quoted in BMG’s announcement.
“We’ve always known that going direct on streaming was BMG’s ultimate objective and we’re proud to have helped them grow to the scale where they could achieve it,” he said.
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