Tellamo: Will the VÃ© policy change after the sale to BMG?
The “largest independent label” TELAMO has been sold to the world’s fourth largest music company, BMG, according to a (joint) press release today. The coming months and years will show if this is good news for pop fans. After all, the former TELAMO team, including its former Managing Director KEN OTREMBA, will be retained, according to the information provided by TELAMO (as we understand it, in an advisory capacity). Almost exactly ten years after its founding, it’s clear that the label is reorienting itself.
Could the result (again) become a sales engine according to its popularity after its purchase?
We had to smile a little at the press release about this sentence:
After pop / pop rock (33%), Schlager is the most popular genre in Germany with 15%, followed by rock / hard rock / heavy metal (13.9%), old-pop (9.4%) and dance/electricity (8,6)%) .
Indeed, this is stated in the brochure “The Music Industry in Numbers 2021” published by BVMI. An explanation of this popularity value can also be found in the brochure – a noticeable percentage of people over 60 who prefer this type. In fact, it’s the perfect target group for Schlager fans – in fact. The BVMI brochure not only shows how popular genres of music are, but also how well they sell. Schlager Group’s share was just 3.1 percent in 2021, which is historically bad.
In 2014, visits made up 6.5 percent of total sales – that number has steadily deteriorated since then and is now down by more than half! For decades, many Schlager fans here have been critical of international music companies. The fact that many stars like FANTASY have recently switched from big business to TELAMO could be due to the fact that even big business is being treated as ‘also in operation’ by global companies, while TELAMO, as a (so far) brand Independent, star catering services can provide a real added value here. We quote here KEN OTREMBA (quote from Music Week 2018):
The combination of key strength and independent structure combined with a perfect marketing setup is becoming an exciting alternative for more and more big stars of this successful genre.
The current press text is delighted that “one of the largest divisions of German posters” is now being created, which in our opinion has nothing to do with an “independent structure”, but with a “superpower”. – But let’s see what VÃ policy looks like over the next few years. It’s also possible that the new brooms will sweep well – after all, this press release wasn’t “stuck” with any media beforehand, but appears to have been sent out to all media partners, which God (unfortunately) knows isn’t normal – seen In this way, it is entirely possible that the new structures will also bring about positive changes.
It remains to be seen if RTL will also play a larger role in the marketing of TELAMO albums in the future. If it so happens that there may be more competition in the successful show scene, that will definitely be welcome
Anyway, we’re keeping our fingers crossed for the most important label right now that buying a BMG will bring the desired benefits.
Full text of the press release
BMG acquires Germany’s largest independent brand
BERLIN / MUNICH – August 3, 2022 – BMG has signed a purchase agreement to acquire Germany’s largest independent music label Telamo. Telamo is the market leader when it comes to strikes.
The merger will create one of the largest German brand divisions with a combined market share of 8.5% across all brands.
This is BMG’s largest label acquisition in Germany to date. Globally, this is the largest investment for the BMG brand since it acquired the BBR Music Group (Nashville) brand in 2017. The acquisition includes not only Telamo and its brands, but also the leading digital offering Schlager für Alle, das enjoys more than 1.7 million users across Facebook, Instagram, YouTube and Tik Tok.
Telamo was founded in 2012 by Kathleen Hermann, Ken Utremba and Marco Winch. All 29 employees and general manager Ken Otremba will remain with the company, and offices will remain in Munich and Berlin. Kathleen Hermann and Marco Winch will continue to work at Tellamo in an advisory capacity.
Eight of the Top 25 German Artists/Pop Artists are under contract with Telamo. The label’s most successful artists are Giovanni Zarrella, Eloy de Jong, Marian Rosenberg, Ross Anthony, De Amigos, Thomas Anders, Florian Silberiazen, Daniela Alveneto, Fantasy and many more.
The strategic deal opens additional collaboration opportunities for Telamo artists across the Bertelsmann Content Alliance, which includes companies such as the RTL Group and Penguin Random House.
Maximilian Kolb, EVP Repertoire & Marketing Continental Europe at BMG, says: “Over the past 10 years Telamo has been able to bring such a traditional genre into the digital 21st century. So we are thrilled to welcome all the great artists and of course the entire team. We represent the same values and we are a good fit. Culturally perfect for each other.Together we will keep moving and changing the market
Telamo founder Ken Otremba says: “Since its inception, our goal has been to create the best possible and cutting edge conditions for our artists. We are proud and excited to present a new chapter with the best preparation. Telamo continues all previous partnerships, and now provides access to even more new worlds – both locally and internationally.
Kathleen Hermann says: “As founders, we have been totally impressed by the shared perspectives with BMG. We look forward to working together and future projects with the team and the entire BMG network.
Entrepreneur Marco Winch says: “Artcom has been with the Bertelsmann Companies for 25 years. At that time, BMG was the first to make products for us. The first artist was Elvis Presley. Followed by Rooney, a longtime seller to this day. With Kane, formerly of BMG Areola, and Kathleen, we’ve been with teams like Fantasy since the beginning. We know each other and know that the new BMG is the right partner for our future.
Artcom is a German conglomerate that owns Shop24Direct, a retailer specializing in pop songs.
Dominic Casimir, Chief Content Officer at BMG, says: “This deal redraws the map of the German music business. In addition, there are already strong points of contact with other divisions of the Bertelsmann Group and we also see many valuable synergies here for our international business.
Since returning to the world of branding in Germany, BMG has had success with artists such as Max Giesinger, Kontra K, LINA, Stefanie Heinzmann, Nils Frahm, Adel Tawil, Anna Loos, Cypress Hill, Trettmann and Kitschkrieg. The registered area makes up about half of BMG’s sales in Germany.
After pop / pop rock (33%), Schlager is the most popular genre in Germany with 15%, followed by rock / hard rock / heavy metal (13.9%), old-pop (9.4%) and dance / Electricity (8, 6) %) .
The transaction is subject to approval by the Austrian Federal Competition Authority. Subject to their approval, the deal is expected to close at the end of August.
Founded in Berlin in 2008, BMG is the world’s fourth largest music company, the first new global music player in the broadcast age, record label and music publisher in one. BMG has set itself the mission of being the best possible partner for its clients when it comes to managing and marketing their music rights, ensuring them maximum income and providing real added value to their professions. The core values of fairness, transparency and service create a decisive competitive advantage.
With 19 offices in 12 primary music markets, BMG represents more than three million tracks and recordings, which include many of the most popular and well-known artists, songwriters and music catalogs. Using the latest technology and an integrated service platform, BMG markets separate copyright and label rights worldwide from a single source. Other services include music, film and book production, artist management, merchandise, neighbor rights, and living.
BMG is a division of the international Bertelsmann media group, which also includes entertainment company RTL Group, book publishing group Penguin Random House, service provider Arvato, Bertelsmann Printing Group, Bertelsmann Education Group, and international fund network Bertelsmann Investments. www.bmg.com
Founded in August 2012, the Telamo name symbolizes passionate and futuristic music marketing. Since then, the company, headquartered in Munich and Berlin, has succeeded in winning first-class artists for our brand and in discovering and nurturing promising young talent. Our publications focus on Schlager/MOR in all its aspects – both nationally and internationally. According to GfK Entertainment, Telamo was the most successful and best-selling brand of 2021 for the fourth time in a row. In the summer of 2022, the label celebrated its 10th anniversary with a hugely acclaimed industry meeting in Munich.
(1) Source: BVMI, The Music Industry by Numbers 2021, p. 28, Figure 17 // Music genres by gender and age.
(2) Source: Longplay: The Labels Ranking Q1 2022
Source: BMG / TELAMO
Photo: Friedrich van der Straiten (from left to right: Hartwig Masoch, Maximilian Kolb, Julia Hook, Ken Utremba, Katja Papp, Kathleen Hermann, Marco Winch, Caspar von Rieden)