CoverV4_cover template 04/09/2012 17:44 Page 1 3 6 9 776669 776136 THE BUSINESS OF MUSIC www.musicweek.com 07.09.12 £5.15 NEWS ANALYSIS FEATURE 03 14 17 Peers, associates and Music Week takes an in-depth look into How the PR sector is coping fans remember the the UK’s most-streamed tracks from the with doing more with great Hal David first half of the calendar year less resource than ever BMG TELLS BRUSSELS: LET US COMPETE WITH WARNER, SONY AND UNIVERSAL Raymonde reveals his Major ambitions Bella-vision LABELS want to create a genuinely new I BY TIM INGHAM competitive environment?” He claimed potential earnings MG is ready to take on of artists switching to BMG's the mantle of the masters model could be three Brecorded music industry’s times that of a conventional deal. fourth major if it can successfully Masuch said that “if assets purchase juicy assets related to which fall out of the Universal- Universal’s buyout of EMI. EMI deal end up with the two The rights management other majors, the best you can company is understood to be hope for is more of the same”. keen to acquire divested record He explained: “If you look at catalogues such as Virgin Records the history of the industry over or Parlophone. A final behind- the past 30 years, every integration Bella Union founder Simon closed-doors decision from EC of an independent label into a Raymonde is sick of his artists regulators on Universal’s £1.2bn major resulted in a new combined not getting opportunities on UK bid is expected this week. output that didn’t exceed the television – and is taking the BMG believes that a output before the integration. matter into his own hands. Coldplay could soon find significant acquisition haul themselves on BMG if it makes a “We all remember majors Speaking exclusively to Music would allow its masters model to bid for Parlophone this month saying they were buying Week as part of a special become a weighty alternative to companies for their creative interview celebrating 15 years of the likes of Sony and Warner for momentum and then closing his much-loved label, Raymonde artists across the globe. “If assets INDEPENDENT THINKING them down shortly afterwards. said: “For the last five years, all Unlike a traditional major We are not in that business.” I’ve done is moan about how shit which fall The most high-profile album on label, BMG’s model does not out of the BMG’s masters model so far is Masuch dismissed criticisms music is on television and that pay artists a standard advance. Universal-EMI Dexys’ One Day I’m Going To of BMG being an aggressively there’s nothing other than Jools. Instead, it offers them a revenue Soar, distributed via Absolute. acquisitive company. He told It drives me mad. split of around 75% of net deal end The LP, released in June, hit Music Week that BMG had “So I’m developing a live receipts, with both parties up with one of the No.13 in the Official UK Chart recently completed its 200th music show. I’ve got a team of agreeing a shared budget for two other majors, the and has sold just over 22,000 signing of 2012. The firm owns about ten people who I rate as units to date. Hartwig Masuch outsourced manufacturing, best you can hope for is more than a million publishing passionate and clever and we’re marketing and promotion. claims that far from depriving the copyrights - but Masuch’s current slowly making progress. I’ve got a more of the same” independent label sector of BMG CEO Hartwig attention is clearly focused on meeting with the production opportunity, a BMG acquisition of Masuch told Music Week that if HARTWIG MASUCH, BMG recorded music expansion. company very soon. Universal/EMI divestments could the firm completes Universal/ boost their business. “All the major labels come with “A TV programme doesn’t EMI-related acquisitions, it He added: “Our aim is to be “The way we work will infrastructure costs of nearly one have to cost £100,000 per show. could double its UK headcount. a solid No.4 in the world of empower a lot of players in the third of their total revenue,” he It doesn’t need to cost more than “If we get what we want out master catalogues. There will be indie sector,” he said. said. “We are substantially leaner. a couple of grand if you do it of the [Universal/EMI] options a long way between No.3 and “We work with independent Majors drown artists in financial smart and guerilla.” discussed in the press, we will No.4, but we would create a marketing companies and burden from the very start. We Raymonde said he was keen outperform our mid-term plan new kind of choice for artists.” distribution companies on our give them time to develop.” for the show “not to become a by three years; by the end of The exec urged the EC not to releases. Indirectly, that could be Assets expected to be pipe dream” and hoped to create a 2013 we will be where we dismiss the potential recorded a much better support for the divested if Universal’s bid is weekly format which aired on a indie scene than forcing them to thought we would be by the end music market growth that could successful include Parlophone broadcaster throughout the year. come up with money to buy of 2016,” he said. “It would be a arise from a strengthened BMG: UK, EMI Classics and Co- catalogues at a time when banks tremendous step-up for us and “Does it make sense simply to are reluctant to lend.” Operative Music, plus Pink Read the full Simon Raymonde extremely exciting.” penalise Universal? Or do we Floyd’s catalogue. »interview on page 10 02-03 NEWSV4_News and Playlists 04/09/2012 18:10 Page 2 2 Music Week 07.09.12 www.musicweek.com NEWS EDITORIAL COMPANY LAUNCHES R&H THEATRICALS DIVISION IN EU Imagem alive with Masters of their destiny the Sound Of Music 13 years as managing director. longtime R&H colleague Bert MY CALL WITH BMG CEO HARTWIG MASUCH this week took PUBLISHING Bert Fink of the R&H New Fink to London to help launch place on one those fancy conference lines where you have to I BY TIM INGHAM York office will also join the this venture.” punch in a special number and a hashtag; the sort which lets you he Imagem Music Group London team for a year Josef Weinberger Ltd. is pretend you’re just a clumsy digit-slip away from being patched is expanding its US-based beginning this currently representing through to stressed-out IMF reps in fraught negotiations over the T theatrical licensing autumn, in his new the Imagem theatrical global economy meltdown or, even better, testy EC types division, R&H Theatricals, with business development catalogues in deliberating Universal/EMI. You’ve got to pass the time, like. the creation of a European role as SVP/Europe Europe, and will work So I’m not sure BMG can be held fully accountable for the branch headquartered in the for Rodgers & closely with Vivien banal, vocal-less dance-pop atrocity that barraged my eardrums London offices of Imagem UK. Hammerstein. Goodwin and her new on the way through the Graham Bell matrix. But I very clearly R&H Theatricals Europe will “I couldn’t be more staff to ensure a remember thinking: “Wow. This really is a company that could do represent a catalogue of thrilled about this smooth transition. with some decent master rights.” Broadway evergreens (South exciting new chapter for John Minch, chief It might not be able to boast of classic records on its Pacific, Oklahoma!) and R&H,” says Ted executive of Imagem answerphone, but what BMG very obviously does have is deep contemporary productions Chapin, president of UK, said: “Sean Gray pockets and a taste for eye-catching acquisitions. And in terms of (Footloose, White Christmas) Rodgers & Hammerstein. and his team at Weinberger have its evolution since splitting with Sony in 2008, they won’t come throughout the UK and across “Richard Rodgers and Oscar done a great job representing much more eye-catching then Parlophone or Virgin. the European market. Hammerstein II always knew the these catalogues and we are very Masuch gave the impression of an exec who is at ease over Vivien Goodwin has been importance of the British and grateful to them. Bringing the the possibility of losing out on both of those prospects - his appointed MD for the new European market, and they both business in-house now is a logical fingers were notably burnt, after all, when EMI Music Publishing division, which is scheduled to loved London, where they had a move, especially given the work came up for sale not long ago. He even didn’t seem too fussed launch in January 2013; production office for many years. we already do with musicals from when I pushed the prospect of BMG not ending up with a single Goodwin will join Imagem UK “Today, as part of a global the Warner-Chappell catalogue. sausage from the great UMG/EMI fire-sale. in late September to prepare for company, our new London “Having Vivien Goodwin join the launch. She comes to R&H branch will give us the us is a real coup; it means that we “At the moment, BMG only really has the Dexys deal Theatricals Europe from Samuel opportunity to reinvigorate our will be able to build up a musical atop its masters CV - but that could soon change” French Ltd., the theatrical catalogue throughout Britain theatre rights business alongside licensing house and publishing and across the continent.