Bertelsmann's Chief Open to Expanding Music Business BMG

Bertelsmann's CEO is considering a deal to expand the music business BMG. In 2023, the German company Bertelsmann reported a 25% increase in profits, reaching €1.3 billion ($1.43 billion), although its operating revenue stayed about the same as the previous year at €20.2 billion ($22.2 billion). A significant boost to its profits came from selling its shares in the digital services company Majorel for just over $1 billion. However, some of Bertelsmann's main media businesses, like its free-TV segment under RTL, are facing challenges. The company is transforming its TV operations, investing in original content through Fremantle and growing its streaming services in Germany, France, and Hungary due to declining TV advertisement sales. Bertelsmann's CEO, Thomas Rabe, praised Fremantle's achievements, including winning four Oscars for the movie "Poor Things." Despite a notable increase in subscribers to its streaming services, with a 31% rise to 5.6 million in 2023, these streaming ventures are not yet profitable.