Rackspace Technology and Google Cloud AI Enable BMG to Process Royalties Ten Times Faster than Before
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Insights
The enhancements in service capabilities for BMG, facilitated by Rackspace Technology's migration of BMG's applications to Google Cloud, represent a significant technological advancement in the music industry. The ability to process royalty payments ten times faster and track music 50% faster is not just an operational improvement; it's a strategic move that can potentially reshape the competitive dynamics within the music industry.
From a market research perspective, this development could lead to a shift in market share as artists and songwriters may gravitate towards companies that offer better transparency and speed in royalty payments. The direct deals with streaming platforms like Spotify and Apple also suggest BMG is positioning itself to capture more value from the digital distribution chain, which could impact the revenue streams and profitability of the company positively.
Furthermore, the use of advanced AI and big data tools for data harmonization and classification can enhance BMG's decision-making processes, potentially leading to more targeted marketing strategies and personalized artist support. This could result in a stronger brand reputation and higher customer (artist and songwriter) satisfaction levels.
The financial implications of BMG's cloud-based platform upgrade and the associated service enhancements are multifaceted. The initial investment in technology and collaboration with Rackspace Technology is likely a significant capital expenditure, but the expected efficiency gains from faster royalty processing and music tracking could lead to substantial cost savings in the long run.
Reduction in operational lag times can also translate into improved cash flows for BMG, as faster royalty payments may reduce the working capital requirements. Moreover, taking control of distribution and striking direct deals could improve BMG's negotiating power and profit margins by eliminating or reducing intermediary costs.
Investors should monitor the impact of these technological enhancements on BMG's market share and financial performance in subsequent quarters. It will be crucial to assess whether the increased operational efficiency and improved artist relations lead to tangible financial outcomes such as revenue growth and margin expansion.
The collaboration between Rackspace Technology and BMG underscores a broader trend in the technology sector: the growing reliance on cloud services and AI to manage and analyze large data sets. BMG's decision to use Google Cloud's services, including AI, GKE and BigQuery, highlights the importance of scalable and flexible cloud infrastructure in today's data-driven business environment.
For the technology industry, this case exemplifies the critical role of cloud service providers in enabling digital transformation across various sectors. The successful migration of 95% of BMG's applications to the cloud within a short timeframe is a testament to the capabilities of cloud engineering services.
As businesses like BMG increasingly adopt cloud solutions, the demand for cloud expertise and services is likely to grow, benefiting companies like Rackspace Technology and Google Cloud. This trend also indicates a potential market opportunity for cloud service providers to specialize in industry-specific solutions, in this case for the music and entertainment industry.
Groundbreaking service enhancements for artists and songwriters can track music
LONDON, Jan. 18, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology, a leading end-to-end hybrid multicloud technology solutions company, has announced it has helped enable groundbreaking service enhancements for artists and songwriters signed to music company BMG. Using Google Cloud’s advanced AI and big data capabilities, BMG can process royalty payments ten times faster and track music
BMG’s new cloud-based platform will also support new data tools it will use following its decision to take control of its previously outsourced distribution, striking direct deals with leading streaming platforms such as Spotify and Apple. The world’s fourth-largest music company will use it to offer clients increased transparency and access to more detailed data.
Music streaming has fundamentally changed the music business. Today, it is the most common way people consume music. Platforms such as Amazon Music, Apple Music, Spotify, and YouTube Music have continuously increased their user numbers, and artists benefit from this trend. But the services also generate vast quantities of data. Every stream track generates data points that must be tracked to ensure clients receive payment.
Faced with a consistent
"Thanks to advanced AI integration, we've seen a huge increase in data harmonization, analysis and processing velocity. And now we can categorize music much faster, which helps us make better decisions on classification," said Maxime Rousson, Cloud Architect at BMG. “Rackspace Technology was great to help us in this journey. They helped us design and architect the best services in Google Cloud.”
BMG CTO Gaurav Mittal said, "The collaboration with Rackspace's team of experts worked well, and together, we successfully executed a complex project of cloud migration in record time. This program was an important milestone of our latest platform upgrade, enabling BMG to meet the future customer needs."
Jürgen Stauber, General Manager, DACH, at Rackspace Technology, added, "We are proud to be able to bring in our knowledge and our expertise in this project and help BMG to design an innovative, scalable, and reliable solution that will generate significant efficiency gains and help BMG to better position itself in the market as the world's most artist-friendly international record label. We remain dedicated to empowering organisations like BMG, ensuring they thrive in today's business landscape's ever-evolving and dynamic terrain."
About Rackspace Technology
Rackspace Technology is a leading end-to-end, hybrid multicloud technology services company. We can design, build, and operate our customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernise applications, build new products, and adopt innovative technologies.
About BMG
BMG is an integrated music publishing and recordings business and the world’s fourth-largest international music company. BMG’s distinctive pitch is a relentless focus on global service to its artist and songwriter clients, combining creative insight and support with the best in technology and analytics. BMG’s 22 offices across 13 core music markets represent over three million songs and recordings, including many of the most renowned and successful catalogs in popular music history. BMG is owned by international media, services and education company Bertelsmann, whose other content businesses include the entertainment company RTL Group and the trade book publisher Penguin Random House. With its integrated technology platform, artist-friendly culture and commitment to help artists maximize their income, BMG aims to be the best company in music to do business with. www.bmg.com
Media Contacts:
Global: Natalie Silva, publicrelations@Rackspace.com
EMEA: Devika Mistry, devika.mistry@Rackspace.co.uk
FAQ
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