Bertelsmann will fold its music direct marketing operations into its existing U.S. businesses by Dec. 31.
The newly formed business unit, BeMusic, will include mail order record club BMG Music Service, online music marketer CDNOW and digital music service, myplay.
In a related development, Andreas Schmidt, president/CEO of the company’s existing e-commerce group BeCG has left the company to pursue other entrepreneurial opportunities, the company said.
BeMusic will now be headed by Stuart Goldfarb, previously CEO of Bertelsmann’s BOL International.
Overall, Bertelsmann, which direct markets books, music and has operations in television, had been making major cuts at its music arm BMG, including 1,100 jobs already axed. The group is also looking to restructure its multimedia interests.
But BeMusic spokeswoman Paula Batson said the company had not determined if there would be any further layoffs as a result of this consolidation.
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