| 04 Aug 2021
BMG and Alibaba sign digital distribution deal for China

MUMBAI: Music company BMG has entered into agreement with Alibaba Group’s digital entertainment business unit. It is a major distribution deal signed by BMG in China.

This deal will help BMG to push its artistes and writers in the region which will help it to grow and boost its earnings in China. Through streaming apps like Xiami and TTPod, Alibaba Group’s digital entertainment business unit will be promoting BMG artistes and help BMG grow in the legitimate music market in China. The digital unit will also supervise and take action against digital and mobile services who may infringe the rights of BMG clients.

The deal includes digital rights to recording of artistes like Scorpions, Jean-Michel Jarre, Black Sabbath, Kylie Minogue, Boyz II Men, Smashing Pumpkins and Bryan Ferry, as well as rights in songs from the likes of Bruno Mars, John Legend, Robbie Williams, the Rolling Stones, Aerosmith and amongst others. It ranges digital rights to over 2.5 million copyrights.

BMG China chief investment officer Dora Yi, said, "This is a game-changing deal for BMG. Alibaba is one of the most progressive and successful companies in China and is the ideal partner for us as we begin to unleash the potential of BMG’s catalogue here."

Alibaba’s Digital Entertainment business unit president Patrick Liu, said, "We are delighted to join hands with BMG to develop a new business model that combines music with e-commerce in China’s entertainment sector. Our rich experience in big data analysis will help us lead innovation in the music industry that ultimately enhances customer experience."

In last 12 months, BMG is seen strengthening its grip in China through various partnerships.  Last year in November, BMG China entered into a major deal with Chinese music and entertainment company Giant Jump who have artistes like Yun Hao, Jianxiang Huang, Xiang Li, Nic Li and many others signed under them. The statement issued by BMG stated that "the deal is the latest step in a plan unveiled 12 months ago to make China a priority territory for BMG, which is already the world’s fourth largest music rights company." BMG CEO Hartwig Masuch said, "Internet and particular mobile media are quickly providing an answer to the music industry’s long time challenge of how to monetise the vast untapped potential of the Chinese market." Alibaba Group is one of the biggest mobile and internet e-commerce companies in the world.

Last year, music label companies Sony Music and Warner Music Group had partnered with Tencent in November and December respectively. Thus, showing the growing expansion plan of the label and publishing company in China.