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US$1.16 billion (FY 2017) Owner See Website Sony Music Entertainment ( SME) is an American global owned by and incorporated as a of Sony Music Holdings Inc. Through, a subsidiary of. It was originally founded in 1929 as and renamed as Columbia Recording Corporation in 1938, following its acquisition by the.
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In 1966, the company was reorganized to become CBS Records, and Sony Corporation bought the company in 1988, renaming it under its current name in 1991. In 2004, Sony and established a 50-50 joint venture known as, which transferred the businesses of Sony Music and into one entity.
However, in 2008, Sony acquired Bertelsmann's stake, and the company reverted to the SME name shortly after; the buyout allowed Sony to acquire all of BMG's labels, including former subsidiary, as well as, and led to the dissolution of BMG, which instead relaunched as. Sony Music Entertainment is the second largest of the ' record companies, behind and ahead of. Sony's is the world's largest music publisher, after the acquisition of.
It also owns, which operates some of the world's most successful, including and. Main article: The American Record Corporation (ARC) was founded in 1929 through a merger of several record companies. The company grew for the next several years, acquiring other brands such as the, including its subsidiary, in 1934. 1938–1970: Columbia/CBS Records [ ] In 1938, ARC was acquired by the under the guidance of chief executive.
The company was later renamed Columbia Recording Corporation, and changed again to Inc. Edward Wallerstein, who served as the head of Columbia Records since the late 1930's, helped establish the company as a leader in the record industry by spearheading the successful introduction of the. Columbia's success continued through the 1950's with the launch of in 1953 and in 1958.
By 1962, the Columbia Records productions unit was operating four plants around the United States located in;;; and. Columbia's international arm was launched in 1962 under the name 'CBS Records,' as the company only owned the rights to the Columbia name in North America. In 1964, the company began acquiring record companies in other countries for its CBS Records International unit and established its own UK distribution outfit with the acquisition of. By 1966, Columbia was renamed as CBS Records and was a separate unit of parent company, CBS-Columbia Group.
In March 1968, and formed CBS/Sony Records, a Japanese business joint venture. 1971–1991: CBS Records Group [ ] In 1971, CBS Records was expanded into its own 'CBS Records Group', with as its administrative vice president and general manager. In the 1980s to the early 1990s, the company managed several successful labels, including CBS Associated Records, which signed artists including,,,, and. By 1987, CBS was the only ' American TV network to have a co-owned record company. With Sony being one of the developers behind the compact disc digital music media, a production plant was constructed in Japan under the joint venture, allowing CBS to begin supplying some of the first compact disc releases for the American market in 1983.
On November 17, 1987, Sony acquired CBS Records for US$2 billion. CBS Inc., now, retained the rights to the CBS name for music recordings but granted Sony a temporary license to use the CBS name. The sale was completed on January 5, 1988. Founded a new in 2006, which was distributed by Sony through its subsidiary.
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1991–2004: Birth of Sony Music Entertainment [ ] Sony renamed the record company Sony Music Entertainment (SME) on January 1, 1991, fulfilling the terms set under the 1988 buyout, which granted only a transitional license to the CBS trademark. The CBS Associated label was renamed Epic Associated. Also on January 1, 1991, to replace the CBS label, Sony reintroduced the label worldwide, which it previously held in the United States and Canada only, after it acquired the international rights to the trademark from in 1990. Japan is the only country where Sony does not have rights to the Columbia name as it is controlled by, an unrelated company. Thus, issues labels under Sony Records. The Columbia Records trademark's in Spain was, which Sony Music subsequently subsumed via a 2004 merger, and a subsequent 2008 buyout. In 1995, Sony and Michael Jackson formed a joint venture which merged Sony's music publishing operations with Jackson's ATV Music to form.
2004–2008: Sony BMG: Joint venture with Bertelsmann [ ]. In August 2004, Sony entered joint venture with equal partner, by merging Sony Music and Bertelsmann Music Group, Germany, to establish. However Sony continued to operate its independently from Sony BMG while BMG Japan was made part of the merger.