Sony-BMG Buys Popgee

Sony-BMG has moved into the Finnish live music market by buying 75 percent of Popgee, a Nummela-based company working mainly with local acts.

"More than 80 percent of Popgee’s turnover was already coming from Sony-BMG artists so the synergy was quite obvious," Sony-BMG Finland managing director Kimmo Valtanen explained. "When the record company also has a business interest in the artists’ concerts, the marketing power is allocated better to promote both the album and the concerts.

"Also, when the booking agent, marketing director, promotion manager and the A&R man sit close to each other, the flow of communication will be better than before," he added.

The terms of the deal haven’t been disclosed but it’s expected that Popgee will add euro 2 million to Sony-BMG’s current euro 16 million turnover.

Popgee was founded in 2001 by Matti Kaunisvesi, at one time the international agent for Bomfunk MCs, and now has five staff running 600-700 shows per year.

It has more than 30 acts on the roster, with iRonica, Dame, local "Pop Idol" winner Ari Koivunen, Korpiklaani, Uniklubi, and Smak looking likely to be the first to break new territories.

"Combining forces in marketing and promotion will bring more resources to the process of building successful artist careers. This way we can provide better service to our business clients as well," Kaunisvesi said of the deal.