SME and the Modern Age
In January 1988, Sony Corporation acquired CBS Records Group, known today as Sony Music Entertainment Inc., for $2 billion dollars. CBS/Sony, the earlier Japanese joint venture, is today the separate company Sony Music Entertainment (Japan) Inc. In April of that year Thomas D. Mottola became President of Sony Music, the domestic U.S. company, beginning a new era at the company that would come to an end in January 2003 when Mottola departed SMEI as its Chairman and CEO.
In January 1989 CBS Records acquired Tree Music Publishing, the world's biggest country music publisher, after its own music publishing division, CBS Songs (est. 1982) was sold by Larry Tisch to a consortium of Stephen Swed, Martin Bandier and Charles Koppleman (SBK), who then sold the company to EMI Music Publishing.
The 1990s were a period of accelerated growth for Sony Music. The company opened new subsidiaries in Taiwan, Turkey, Portugal, South Africa, Hungary, the Philippines, and Poland. SMEI became a force in the family entertainment business through an exclusive, long-term agreement with Children's Television Workshop to develop, produce, manufacture, and distribute Sesame Street film, home video and audio titles through Sony Wonder, Sony Music's children's and family entertainment division.
In order to accommodate its increasing worldwide growth and success, in 1994 Sony Music Entertainment reorganized into four label groups, each Group consisting of a chief label and its affiliated imprints and joint ventures: Epic Records Group, Columbia Records Group, TriStar Music Group, and Sony Classical. Three years later TriStar Music Group became Relativity Entertainment, which later merged with LOUD to become LOUD Recordings. LOUD later became subsumed into Columbia Records Group.
Sony Music's publishing catalogue was also growing quickly. In 1995 Sony Music Publishing merged with Michael Jackson's American Television (ATV) song catalogue to form Sony/ATV Music Publishing, a joint venture which owns and/or administers the catalogues of the Beatles, Hank Williams, Bob Dylan, Bruce Springsteen, Joni Mitchell, Jimi Hendrix, Leonard Cohen, Willie Nelson, and Ruben Blades, among dozens of others. In 2002 Sony/ATV acquired the Acuff-Rose catalogue, the first and most prestigious Country music catalogue in the world, containing songs by Hank Williams, Roy Orbison, Felice and Boudleaux Bryant, and The Everly Brothers.
Extending its geographic reach, Sony Music International moved its Asian regional headquarters from Singapore to Hong Kong concurrent with its acquisition of Sony Music Hong Kong, which became a wholly owned subsidiary. In 1998 SMEI became the first major music company to establish a cooperative arrangement in China to develop Chinese-language repertoire for local and international markets, and subsidiaries in Indonesia and India began operations.
SMEI firmly established operations in mainland China when it became an equity partner in a cooperative joint venture music company in China, Shanghai Epic Music Entertainment Company, Ltd. (SEME), with two leading local partners. SMEI also launched a wholly owned subsidiary in Russia, expanded its activities in Asia, and acquired the independent record labels Luna Music (Mexico) and RTI (Italy).
SMEI also established the first major music company website in 1994, and launched the New Technologies and Business Development department that same year. That department explores new businesses for SMEI, and develops new products such as ringtones, Enhanced CDs, ConnecteD, and other Internet-related distribution platforms.
In 1999, 100 years after the introduction of the Gram-O-Phone, the originators of the compact disc, Sony and Philips, unveiled their jointly developed next generation sound carrier - the Super Audio Compact Disc (SACD) - nearly 20 years after they introduced and established the Compact Disc as the standard and preferred format for packaged music. By 2003 three of the other four major music companies began releasing their own SACD discs in addition to those of more than two dozen independent labels.
Continuing its tradition of promoting technical innovation, SMEI entered the new century by establishing a joint venture with Universal Music Group to launch an on-demand, Internet-based commercial music subscription service, pressplay, that offers licensed content from all the major music companies as well as several independent labels. Its music is also available online through services provided by MusicNet, Rhapsody, and Rioport.