Bertelsmann launches new music rights business

The company plans to offer custom-tailored services for songwriters and performers who want support in the creation, marketing and licensing, collection and accounting as well as advance financing.

"We are focusing precisely on that area of the music industry which promises growth," explained Hartwig Masuch, the chief executive of BMG Rights Management in Berlin.

"Today, a music writer or performer can derive significantly more income from the rights to his work than before. This is where we want to position ourselves with customized, flexible services as well as transparent accounting," Masuch said.

Earlier this month, Bertelsmann said it had completed the sale to Sony Corp. of its 50 percent stake in music venture Sony BMG in a $900 million deal.

The transaction gave Sony Corp. full ownership of a roster of artists including Alicia Keys and an enhanced ability to sell music on an array of electronic devices.

Part of the deal, announced Aug. 5, called for Bertelsmann to take over a few selected European music catalog assets from Sony BMG--representing about $20 million, or less than 1 percent of Sony BMG's revenue last year.

Bertelsmann's interests range from publisher Random House to radio and television, including broadcaster RTL, magazines and media services.

Bertelsmann is headquartered in Guetersloh, Germany.

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