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In 2000, Michael Dornemann and Strauss Zelnick
left BMG |
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Their replacement, Rudi Gassner died on December
23, 2000. |
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After a short search, Bertelsmann AG chairman
and CEO Thomas Middelhoff chose former journalist and lawyer Rolf
Schmidt-Holtz. |
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Schmidt-Holtz had no music experience prior to
being named Chairman and CEO of BMG. However… |
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He had held top positions in almost every field
of entertainment and media business, having worked as a journalist, TV
correspondent, magazine editor-in-chief and publisher, newspaper publisher,
and TV executive. |
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Editor in chief for German TV station WDR. |
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Publisher and editor in chief for Germany’s
biggest magazine, Stern. |
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Head of Bertelsmann AG’s European TV/film and
Europe division. |
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CEO of TV company CLT-UFA. |
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In charge of content on Bertelsmann AG’s
management board. |
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Continues to serve on the Bertelsmann Board as
the Chief Creative Officer. |
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Three key executives left after the previous
leadership left. |
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Schmidt-Holtz replaced them and assembled an
outstanding executive board. |
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He used a basic Bertelsmann AG principle of
hiring senior managers from within. This brought calm to a division
unnerved from all the events of 2000. |
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All of the executives report directly to
Schmidt-Holtz. |
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Schmidt-Holtz borrowed the motto of the late
Gassner which was “think global, act global”. |
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He appointed managers to all the different
regions of the world. |
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He has tried to market local BMG acts
internationally to enhance their market presence on a global level. |
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Supported Napster. |
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One of his main strategies is incorporating
young acts with classics. |
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BMG made a lot of money on young acts such as
Avril Lavigne and Alan Jackson, but the biggest seller of the year was
Elvis’ #1 hits album, hitting number one on album charts in 15 countries
and selling around 9 million units globally. |
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In this time of economic hardship for record
companies, Schmidt-Holtz feels record companies should organize tours and
use merchandising and other revenue streams to increase revenue. |
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Schmidt-Holtz has fought through these tough
economic times and operates a company that owns and operates more than 200
record labels in 42 countries. |
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In 2002, BMG’s worldwide market share topped 10
percent, up from 8.2 percent in 2001. they also had a worldwide revenue of
2.6 billion dollars. |
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Notes