Credit: BMG/pressLily Allen's latest album was a highlight for BMG's recorded music team in 2025
BMG generated EUR €900 million (USD $1.02bn) in annual revenues in 2025, down 6.5% YoY on a reported basis, or down 1.5% YoY on an organic basis.
That’s according to a new set of annual fiscal results from the music company’s parent, Bertelsmann, published today (March 26).
The revenue decline was largely a deliberate consequence of BMG’s own strategic choices – most notably the divestment of non-core businesses in its Live segment, combined with unfavorable foreign exchange movements driven by the weaker US dollar. (BMG’s organic growth/decline is calculated by stripping out foreign exchange variations, as well as the impact of acquisitions and disposals.)
Worth noting: BMG says that its underlying recorded music streaming subscription revenue grew by double digits in 2025.
BMG’s annual adjusted operating EBITDA reached an all-time high of EUR €284 million ($321m), up 7.2% YoY compared to the prior year’s record equivalent of €265 million.
The company’s EBITDA margin hit a new record 31.5% in 2025, up from the 27.5% posted in 2024.
Bertelsmann attributed the continued profit growth at BMG to “the deliberate prioritization of digital revenue sources and long-term profitability,” alongside the positive mix effects of a business now almost entirely concentrated on publishing and recorded music rights.
BMG’s global headcount stood at 917 employees at the end of 2025, down from 1,020 at the close of 2024, as it continued to streamline its operations across its core publishing and recorded music segments.
“Delivering a record EBITDA margin of 32%, while significantly increasing EBITDA in absolute terms demonstrates the strength and scalability of our operating model.”
Thomas Coesfeld, CEO of BMG, said in a press release: “2025 was a transformational year for BMG, defined by disciplined execution under our BMG Next strategy. We sharpened our focus on music publishing and recorded music, strengthened our digital capabilities, and supported that focus through our Boost investments and cutting-edge technology, including the integration of AI across our workflows.
“Delivering a record EBITDA margin of 32%, while significantly increasing EBITDA in absolute terms demonstrates the strength and scalability of our operating model and reflects the dedication of our global teams in driving sustainable long-term growth for our artists and songwriters.”
Revenue breakdown: US share dips, UK gains
BMG’s geographic revenue breakdown shows the United States remains the company’s dominant market, though its share dipped slightly to 48.6% of all revenues in 2025, down from 49.6% in 2024.
The United Kingdom generated 14.7% of BMG’s revenues in 2025 – a notable increase from 12.9% the year prior.
Other European countries contributed 18.2%, while Germany, BMG/Bertelsmann’s home market, accounted for 6.9%. France contributed 4.5%, while other countries worldwide accounted for the remaining 7.1%.
Catalog investment surges to record levels
According to Bertelsmann’s annual report, BMG spent EUR €358 million ($405M) acquiring music catalogs in 2025 – a sharp increase from €243 million ($263M) in 2024, and the firm’s largest annual catalog investment on record.
Of that €358 million, €303 million ($342M) was directed specifically at music catalogs in the United States.
Since the launch of Bertelsmann’s Boost investment program, BMG has invested more than USD $1.5 billion in music rights.
The headline acquisition of the year was the USD $250 million deal that saw BMG swoop for the rights of country superstar Jason Aldean – the single largest catalog acquisition in BMG’s history.
BMG completed 30 catalog acquisitions in total during 2025.
AI integration deepens
BMG continued to expand its use of artificial intelligence across core business workflows in 2025. Notable developments included an agentic, AI-supported recommendation engine for sync licensing, new tools for marketing automation, content creation, and playlist management, and the continued development of SafeSounds – its generative AI tool for identifying and flagging potentially sensitive content within its catalog.
Strategic AI partnerships were deepened with Google Cloud and OpenAI, while BMG extended its research collaboration with the TUM School of Management’s GenAI Lab in Munich.
Bertelsmann’s annual report notes that BMG remains “exposed to growing risks arising from the use of artificial intelligence, driven primarily by the lack of adequate legal frameworks regulating content creation, monetization, and the use of BMG’s repertoire” – including risks that AI-generated content could lead to a “detrimental redistribution of royalties within existing revenue models.”
New signings and release highlights
In the recorded music business, BMG signed new deals or extensions with artists including OneRepublic, Brantley Gilbert, Olly Murs, FREDRIK, Atlus, i-dle, Jessi, and Joyce Wright. On the publishing side, the company signed or extended agreements with James Arthur, Tom Walker, ALOK, Dardan, and Juicy Bae.
Standout releases in recorded music included projects by Lily Allen, Jason Aldean, MARINA, Wiz Khalifa, Blake Shelton, and Caparezza. Country star Lainey Wilson won a total of four Country Music Association Awards, including “Entertainer of the Year” for the second consecutive year.
BMG clients dominated at the 2026 Grammys, receiving 20 direct nominations and winning awards in 12 categories. Country star Jelly Roll secured three awards, including Best Contemporary Country Album, Best Country Duo/Group Performance, and Best Contemporary Christian Music Performance/Song – his first ever Grammy wins.
On the publishing side, highlights included works by Ghost, Jessie Reyez, Kontra K, Pashanim, CMAT, Lewis Capaldi, FKA twigs, and Pulp. BMG songwriters also contributed to the globally successful singles “Die With a Smile” (Bruno Mars and D’Mile), “APT.” (Bruno Mars), and “luther” (roselilah and Kamasi Washington) – with roselilah and Washington taking home a Grammy for the latter.
Digital infrastructure and direct licensing
As part of its BMG Next strategy, BMG renewed and expanded direct licensing agreements with several leading Digital Service Providers during 2025, including a landmark US publishing deal with Spotify and an expanded partnership with TikTok. BMG said these agreements enhance its ability to promote music, leverage deeper audience insights, improve content placement, and ensure faster, more direct royalty collection.
The company also completed the rollout of its new global copyright technology platform and launched Sync+, a new unified brand bringing together its Commercial Sync, Production Music, and Media Services divisions under a single integrated offering.
All EUR-USD currency conversions in this article have been made at the 2025 annual average rate of 1.1300, as per Bertelsmann’s own reported exchange rate. Bertelsmann defines adjusted EBITDA as EBITDA omitting special items, which “primarily include impairment losses and reversals of impairment losses, fair value measurements, reorganization expenses and results from disposals of investments.”Music Business Worldwide
