Nearly every aspect of BMG’s business strategy has undergone significant alteration in the first half of 2025, as the music rights company decisively shifts toward a streaming-focused future while improving profitability despite declining revenues.
The company reported an 8% year-on-year revenue decline to approximately €424 million, partially attributed to the intentional disposal of non-core assets as part of its strategic “BMG Next” initiative.
Despite the revenue dip, BMG’s financial health shows marked improvement with EBITDA margins climbing to 28.7%, up from 26.5% in the previous year. This profitability boost comes as the company narrows its focus to core music publishing and recorded music activities, while divesting from lower-margin ventures such as live concerts.
Profitability surges despite revenue contraction as BMG refocuses on high-margin core business while shedding ancillary ventures.
Adjusted operating EBITDA remained steady at €122 million, demonstrating operational resilience amid the changeover.
The company’s streaming business has emerged as a bright spot, with digital revenue now comprising 72% of total income, up from 69% in the first half of 2024. This digital growth has been bolstered by expanded direct licensing agreements with digital service providers and the integration of sync and production music teams under a “Sync+” structure to enhance licensing efficiency. The company’s underlying music streaming revenue has experienced high single-digit growth despite market challenges. BMG has also implemented innovative playlist pitching strategies across major platforms to maximize visibility for its artists.
BMG’s acquisition strategy remains aggressive, with 17 music rights purchases completed in the first half of 2025 alone. The company invested approximately €200 million in catalog acquisitions during this period, bringing its total investment in music rights since 2021 to around €1.2 billion.
Technology and AI integration have become central to BMG’s operations, with partnerships established with Google Cloud and OpenAI to automate workflows and enhance marketing capabilities. The company has also strengthened its promotional toolbox by encouraging artists to utilize pre-save campaigns for new releases. The United States market continues to be crucial for BMG, accounting for over half of the company’s total revenue despite an 8.1% decline in the region.
These technological advancements support the company’s fresh brand identity, revealed earlier this year, which repositions BMG as a modern, digitally-driven music enterprise.
As streaming continues to dominate the music industry landscape, BMG’s strategic pivot appears well-timed, focusing on higher-margin core businesses while leveraging digital technologies to maximize value from its expanding catalog of music rights.
