Related Post
MUMBAI: Bertelsmann AG, Europe`s largest media company, posted a first-half loss thanks to copyright settlements for its funding of music-downloading service Napster and lower earnings at its book publishing and music units. Bertelsmann`s net loss was 51 million euros (US$69mil) after a profit of 258 million euros a year earlier, the company said in a statement. Pan-European broadcaster RTL Group however showed a strong growth for its German parent in the German and French TV markets compensating for stagnant or negative developments in most of Bertelsmann`s other businesses. Bertelsmann top brass said on Tuesday that its music arm BMG and partner Sony Music are considering an expansion back into the music-publishing business.The company has reported a two per cent drop in revenue for the first half to ??9 billion ($12 billion). The figures included BMG Music Publishing, which Bertelsmann sold in December to Vivendi`s Universal Music Group for $2 billion.Adjusted for the loss of its music-publishing business and other portfolio changes, Bertelsmann`s revenue rose 1.3 per cent, say reports.RTL continues to be Bertelsmann`s motor, with ??2.9 billion ($3.9 billion) in revenue and an operating profit of ??510 million ($693 million) in the first half. This was despite a $168 million goodwill write-off on RTL`s British TV assets — Channel Five and its digital spinoffs. Last week, Bertelsmann settled what it said will be the last lawsuit connected to its 2002 bailout of file-sharing company Napster. Bertelsmann said it has paid out ??229 million ($311 million) in claims relating to Napster lawsuits so far and expects, by year`s end, to have shelled out ??393 million ($534 million).More troubling for Bertelsmann`s music division BMG is the drop-off in its traditional CD business. Bertelsmann CEO Gunter Thielen said Tuesday that the company “like all of our competitors” was taken by surprise by the 20 per cent drop in traditional music sales worldwide in the first half.
