Warner Music Spain has acquired Madrid-based Newiscom, the events production/marketing agency, as part of its strategy to diversify revenue sources for its local acts and touring international artists.
The acquisition, for an undisclosed amount, may be the first international acquisition since Warner was acquired by Access Industries in May, and signifies that, at the moment, it is business as usual at the company.
The deal, which also aims to establish Warner Music Spain's ambitions to expand into the burgeoning branded-entertainment business, makes the 10-year-old Newiscom a wholly owned subsidiary of the major label, which has been a Newiscom client in the past.
Newiscom is already established in Spain as organizer of brand-funded live events such as concerts, conventions and launch events for its clients in a variety of sectors, including automobiles, consumer electronic groups, airlines and telecommunications. It also creates accompanying digital-marketing and communications campaigns.
Additionally, Newiscom organizes events for clients in the entertainment industry and has in the past formed partnerships with Warner Music Spain for special music events.
These include the centenary celebration of the Gran Via, Madrid's opulent shopping thoroughfare, in April. It was sponsored by SEAT, the Spanish carmaker and subsidiary of German car giant Volkswagen Group. Among the artists performing special gigs during the celebrations were Ireland's Sharon Corr and local Celtic/rock band El Sueno de Morfeo.
"Newiscom's close, on-going relationships with a host of popular brands will help both established and emerging acts reach new audiences via unique experiences and events," explained Charlie Sanchez, Warner Music Spain's president, in a statement.
The move equally makes Newiscom a sister company to Get In, an artist-services venture that was acquired in 2008. Its activities include artist management for local acts like Latin-Grammy winner La Oreja de Van Gogh, and promoting live shows for international artists such as Bruce Springsteen, Seal and Bon Jovi.
Although like Get In, Newiscom is now a 100% subsidiary of Warner Music Spain, both will function as stand-alone units within the music company and are not restricted to servicing only Warner Music acts.
"The combination of our core recorded-music business with Get In and Newiscom means we are able to plan and execute sophisticated multi-rights campaigns tailored to the needs of individual artists in Spain," added John Reid, CEO of Warner Music Europe & international marketing. "This is the latest in a series of moves that has built a European network of expanded rights knowledge and resource, re-defining the depth and range of our partnerships with artists."