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Music Industry 18 January, 2006

SONY BMG STRATEGIC MARKETING GROUP ANNOUNCES THE LAUNCH OF BURGUNDY RECORDS

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New York (Sony BMG Music Entertainment) - The Sony BMG Strategic Marketing Group (SMG) announced today the launch of its new record label, Burgundy Records. The new Sony BMG SMG imprint label, which is spearheaded by Executive Vice President Joe DiMuro, is set to sign legendary multi-platinum artists and release new titles in conjunction with an innovative marketing campaign that will promote the artists through traditional and non-traditional channels. Burgundy Records will mark its debut with the signing of music icons Chaka Khan and Aaron Neville.

'I am looking forward to working with many of the artists that I grew up with and making their music available to everyone, including new and old fans alike,' said Sony BMG Executive Vice President Joe DiMuro, 'I am confident that Burgundy Records will be a fantastic addition to the Sony BMG myriad of labels.'

'I am excited to be a part of Burgundy Records and look forward to giving my existing fans and hopefully new fans some brand new music,' says Aaron Neville. 'New Orleans' first son' and four-time Grammy award-winning artist, Neville has a trademark angelic voice and an impressive body of work to go along with it.

'I am very much looking forward to my partnership with Burgundy Records. I think that Burgundy was made for me, and I know that we'll do great things together,' says Chaka Khan. As one of the most important female artists of the 21st century, Chaka Khan has continued to influence and inspire the music industry as well as her fans through her dynamic voice and stage presence.

Burgundy Records is set to sign additional artists who have retained strong consumer affinity and produced a catalog of music that is still relevant and appreciated today. The label's primary target audience will be the often under-served adult consumers who may consider themselves fans of the artists' earlier work and are eager to hear new material. In tandem with this outreach to a loyal consumer base, the label will also bring widespread exposure for these iconic artists and their new music to a contemporary audience.

'The exciting thing about Burgundy Records is that it will expose legendary artists to consumers who don't even know they are fans,' said Matt Stringer, Senior Vice President of Marketing & New Product Development. 'Most people do not realize that today's chart-topping artists are influenced by artists that their parents grew up with.'

With the launch of Burgundy Records, The Sony BMG Strategic Marketing Group will extend its unique approach to music marketing, operating under the conviction that an artist's success is not defined exclusively by radio spins. Central to every project executed by SMG is the concept of a '360-Degree Approach.' By operating much like an agency, the Group analyzes artists from every angle and promotes them through a variety of channels, including licensing, strategic partnerships, mobile applications, DRTV, tour marketing and publicity.

'Artists and their labels can no longer rely on exposure through radio and video to get their new music into the hands of existing or potentially new fans,' said DiMuro. 'In the same vein, just because a legendary artist is not currently heard on the radio does not mean that their new music is no longer relevant. Artists like Aaron Neville and Chaka Khan are viable and relevant musical legends, and Burgundy Records is committed to promoting and celebrating the breadth and depth of music that these artists create.'

Sony BMG Music Entertainment is a global recorded music joint venture with a roster of current artists that includes a broad array of local artists and international superstars, as well as a vast catalog that comprises some of the most important recordings in history. Sony BMG Music Entertainment is 50% owned by Bertelsmann A.G. and 50% owned by Sony Corporation of America.

The newly formed SONY BMG Strategic Marketing Group works closely with the company's labels to oversee and coordinate activities in a variety of areas, including master television, film and commercial licensing, creative product development, partnership marketing alliances, and the coordination of joint soundtrack projects between the Sony Music and BMG label groups, as well as overseeing Elvis Presley content management.






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