NEW DIRECTION COMING FOR SONY BMG

Digital Music News writes that Sony BMG Music Entertainment CEO Andy Lack "…recently announced his intention to transform his label group into ‘a broadly defined entertainment company,’ charting a brand new direction for the troubled business."

"Of course, with FM radio steadily declining and MTV moving to a seemingly "all-Punk’d, all-the-time" format, labels have been aggressively courting advertising producers and music supervisors on films and TV shows for years, attempting to break acts through soundtrack exposure…However, Lack is actually talking about creating development divisions within Sony BMG, entities which would create, market and distribute video programming. The company reports that projects are already in development on both the film and TV sides, with special attention going to concepts which feature Sony BMG acts…"

"Lack’s attempt to revitalize his company’s fortunes certainly calls for innovative approaches, but shifting resources away from what is presumably a music company’s core competency – finding, developing, promoting and distributing music

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is an unorthodox response to the challenge. Sony BMG is currently the world’s number two record company: why trade that ranking for second, or third, or ninetieth-banana status in the world of film and TV?"

"That answer may come from the background of Lack himself, who comes to Sony BMG steeped in the world of the small screen, serving as a longtime producer and executive at both CBS and NBC…"

Read the full Digital Music News story by Michael Baker here.