BMG is stepping away from the live music business after agreeing a deal which will see its two live companies, Undercover and Karo, transferred back to the minority shareholders.

The German-headquartered music giant acquired a majority stake in Brunswick-based promoter/event production firm Undercover in October 2020, enabling it to “offer artists an integrated tour promotion and ticketing service” on an opt-in basis, in addition to “releasing recordings and publishing songs”.

BMG and Undercover subsequently formed a strategic alliance with Karo, the company behind the Taubertal Festival, in 2021, and booked out Berlin’s 1,600-seat Theater des Westens every night until the end of 2024 to showcase domestic and international recording artists.

However, in late 2023, BMG CEO Thomas Coesfeld announced the company would be focusing on its “core service areas” of music publishing and recordings moving forward.

“We wish BMG and its team all the best and every success in focusing on its core business”

“Michael Schacke [Undercover founder/owner] and Volker Hirsch [Karo founder/owner] are seasoned entrepreneurs who have built enviable reputations in the live music business,” says BMG chief content officer Dominique Casimir. “We are pleased to have agreed terms which allow them to pursue an independent future and we wish them and their teams the best for the future.”

The new deals will see the two companies return to their previous ownership structure.

“I have looked for and found the best solution for Undercover and our artists,” says Schacke, who launched the company in 1991. “Undercover will remain strong and independent in the future. We wish BMG and its team all the best and every success in focusing on its core business.”

Founded in Tauber Valley in 1996, Taubertal has featured acts including Biffy Clyro, Placebo, Rise Against, Pink, Die Toten Hosen, The National and Skunk Anansie.

“It has been a pleasure working with Michael Schacke and Dominique Casimir and we are pleased yet again to be pursuing an independent course as we near the 30th year of existence of Taubertal in 2026,” adds Hirsch.

The record business has had a complex relationship with its live counterpart down the year

The record business has had a complex relationship with its live counterpart down the years, arguably reaching its zenith with the controversial proliferation of so-called ‘360’ deals with artists in the late 2000s/early 2010s.

More recently, major label Warner Music Group (WMG) crossed the divide to acquire India-based live events and artist management company E-Positive. WMG said that the deal would strengthen its position in the market while allowing its artists “to tap into new expertise in brand partnerships and live events”.

Also in 2023, Warner Music France’s live entertainment and concert production company Décibels Productions secured a majority stake in French talent agency Les Visiteurs du Soir, while Warner Music Poland bought a minority stake in Polish concert and festival promoter Big Idea in 2022.

Meanwhile, Sony Music Masterworks, a division of Sony Music Entertainment (SME), acquired a majority stake in Barcelona-based Proactiv Entertainment last year. Other investments by Sony Music Masterworks include Backyard Cinema; Holland-based GEA Live; Dubai-based concert promotion, talent management, events and production company MAC Global; Raymond Gubbay Ltd and UK concert promotion and production company Senbla.

Elsewhere, Universal Music Group (UMG) launched live music arm U-Live in 2012. French-headquartered media giant Vivendi, which announced the partial spin-off of its UMG stake in 2021, is reportedly working with advisers on potentially offloading parts of its Vivendi Village subsidiary, including See Tickets and 11 festivals such as the UK’s Love Supreme and Kite, as well as Garorock in France.

Sources indicate that Vivendi has concluded its ticketing and festival businesses were not of sufficient scale to compete with the likes of Live Nation and AEG. The Financial Times reported the firm is seeking up to £300 million (€348m) for See Tickets, which it bought for €96m in 2011, with AEG and CTS Eventim said to be among the interested parties.

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BMG and its live partner Undercover have formed a strategic alliance with Volker Hirsch, founder of Germany’s Taubertal Festival.

The deal, which will see BMG acquire a majority stake in Taubertal organiser KARO Konzert-Agentur Rothenburg, marks the latest phase of the label and publisher’s live expansion, adding festivals to its existing touring, booking and concerts offering.

Founded in Tauber Valley in 1996, Taubertal has featured acts including Placebo, Rise Against, Pink, Die Toten Hosen, The National and Skunk Anansie. Its 25th-anniversary edition, scheduled for 12-14 August 2022, will welcome the likes of Biffy Clyro, Kontra K, AnnenMayKantereit and Kraftklub.

KARO, Undercover and BMG will work together to create “compelling, tailor-made music marketing and sponsorship solutions for the festival”, with the goal of further strengthening the brand internationally.

“After 25 very successful years, I am looking forward to a new chapter,” says KARO Konzert-Agentur Rothenburg CEO Hirsch, who will retain full creative freedom and continue to head the festival.

I am excited to be able to build up the festival headliners of the future together with BMG

Hirsch adds: “I see the partnership with BMG as a valuable support in underpinning the position of Taubertal-Festival as a top national festival brand and in bringing the media activation of the festival to a top international level.

“I am excited to be able to build up the festival headliners of the future together with BMG and to be part of BMG‘s live entertainment offering started together with Undercover.”

Berlin-based BMG partnered with German promoter Undercover in 2020. 

Michael Schacke, CEO of Undercover and head of BMG’s live activities in GSA, says: “One year after Undercover joined BMG, we can now close the festival gap in our live portfolio and thus further expand our joint vision of live entertainment and artist partnership.

“In Volker’s and my first conversation about moving closer together it immediately became clear: The values of KARO, BMG and Undercover including fairness and transparency fit together incredibly well. My team and I are really looking forward to working together.”

Dominique Casimir, BMG EVP global repertoire & marketing EU, APAC & LATAM, adds: “Moving into live music demonstrates BMG’s commitment to offer artists the entire creative value chain, giving us the opportunity to serve them in every area of their careers depending on their individual setup. Expanding these services to all relevant stakeholders in the live music and entertainment market is the next big step.”

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