Printed from http://www.electronista.com

Sony buys out BMG stake in Sony BMG label

updated 09:10 am EDT, Tue August 5, 2008

Sony BMG Now Sony Music

Sony today announced that it has bought out Bertelsmann's 50 percent stake in Sony BMG and will now completely own its music label. The new label, named Sony Music Entertainment Inc. (SMEI), ends the short four-year run of Sony BMG and will let Sony create a "total entertainment experience" where the electronics giant can more closely integrate its music with its devices, according to company chief Sir Howard Stringer.

The executive doesn't provide more specific details as to company plans, though the company's most directly related products are its Walkman portable digital players, which have had to rely on third-party stores for online music since Sony Connect was shuttered last year. The company also produces many digital-aware stereos and receivers and also supports music through the PlayStation 3, which can not only play music directly but also stream it across a local network.

Bertelsmann is less specific about its plans but says the agreement is the result of a "strategic decision" that allows it to focus on business areas it knows are growing. The Germany-based company will continue to be involved in the music business and will own a handful of former Sony BMG European music titles as well as share manufacturing and distribution.

The move alludes to difficulties in the music industry, which has seen rapidly falling CD sales that have only been partly compensated for by a similar spike in online music purchases.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Patriot Supersonic Rage XT 128GB USB drive

USB thumb drives are getting larger by the day, their growth speeding along with the availability and expansion of memory chips. But h ...

Crucial MX100 256GB SATA-3 SSD

While the price-per-gigabyte ratio for magnetic platter-based hard drives can't be beat, the speed that a SSD brings to the table for ...

Narrative Clip

With the advent of social media technology, people have been searching for new ways to share the events of their daily lives -- be it ...

Sponsor

toggle

Most Commented

 
toggle

Popular News