Thomas Coesfeld talks about BMG’s ‘unique contribution’ and ‘enormous financial potential’ at the Music Investors Conference in New York

In January, BMG CEO Thomas Coesfeld told MBW how Company prepares for “tectonic shifts” affecting the music rights business.

Part of those arrangements included changes to its digital and physical music distribution systems; focus exclusively on music publishing and recording; and reducing overheads.

The executive also pledged to “double down” on BMG’s investment in the United States, highlighted this week by the rebuilding of its front-line recording group led by Jon Loba, and a deal with Republic Records for a new Jelly Roll album.

Berlin-based Coesfeld was in the US himself this week to explain BMG’s market position on stage in front of the good and the good of the M&A world.

Coesfeld participated in a panel discussion at the Second Annual Music Investors Conference hosted by NMPA CEO David Israelte in New York on Tuesday (June 11), where he highlighted BMG’s Investment Strategy.

During the interview with Israel, Coesfeld explained that “an appreciation for the art of storytelling and championing the rights of creators has always been ingrained in the DNA of both BMG and our parent company Bertelsmann”.

Coesfeld also told the Investor Conference audience that, although BMG has “great financial strength,” the company’s “great unique strength lies in our scalability due to our size and the entrepreneurial spirit of our group”.

MBW agreed, in keeping with the rules of the day, not to report on any of the discussions at the Music Investors Annual Conference. But BMG CEO Thomas Coesfeld has given us personal permission to use the quotes featured in this article.

The BMG CEO’s appearance in New York this week follows what he said at the company’s “best-ever quarter in Q1 2024” event. He mentioned that BMG “plans to continue building on this momentum.”

BMG’s annual revenue to reach EUR905 million (USD $979m) in FY 2023, up 4.6% YOY.

BMG’s operating EBITDA in 2023 is stagnant EUR194 million ($210m)which was flat compared to last year’s EBITDA result €195 million.

Elsewhere during a keynote speech on Tuesday, Coesfeld outlined the new company’s “BMG Next strategy” and explained that BMG has “positioned itself to be the leading music company of the future, uniquely prepared to meet the changing needs of musicians and songwriters”.

Part of BMG’s Next strategy was implemented this week with a new organizational structure for US Frontline Recorded, which the company says is “designed to provide BMG’s artist partners with additional expertise and service”.

The restructuring sees Jon Loba, President, Frontline Recordings, BMG North America, take on the role of President, Frontline Recordings, The Americas.

“BMG is willing to invest more in the US market and is open to partnering with the right investors,” Coesfeld told an audience in New York.

“We are the right partners. We have the money to buy IP and the team and technology to maximize the value of those rights.”

Thomas Coesfeld, BMG

Delving deeper into BMG’s investment strategy during an interview with David Israelte, Coesfeld said: “We are the right partner. We have the money to buy IP and the team and technology to maximize the value of those rights.”

He added: “We strive to be a trusted home for songwriters and a life collection for musicians. We are not in this for short-term growth, but building and growing a sustainable list.”

The conversation also turned to the current state of the music rights market and the role he believes BMG can play in it.

“Due to the change in interest rates, many people entered the market believing that music rights are a big profit but they didn’t know how to manage these amazing songs,” said Coesfeld.

He added: “At BMG, we can collaborate on investments and help manage these rights actively.”

In November, just four months after taking on the CEO role at BMG, the company unveiled its “growth plan” and noted that it would begin “significant investments” in technology and its myBMG platform for songwriters and artists.

“We have significantly increased our investment in technology to improve our operational capabilities for the future,” Coesfeld explained in New York on Tuesday.

In March, speaking in an interview with Thomas Rabe, CEO of BMG parent Bertelsmann, The Financial Times report that Bertelsmann was considering expanding his music division through a rival merger or “spin-off investment”.

“BMG could be an opportunity for emerging investment and to join forces with competitors,” Rabe said.

“If an opportunity arises to grow BMG in collaboration with another music company, we can consider it.”Music Business Worldwide