MOTOWN AND POLYGRAM ANNOUNCE INTERNATIONAL LICENSE AGREEMENT
LONDON, Nov. 5 /PRNewswire/ -- Motown Record Company L.P. and PolyGram N.V. (NYSE: PLG), which recently announced an exclusive U.S. distribution deal, today announced an agreement for the distribution of Motown repertoire throughout the rest of the world.
Under the multi-year licensing deal, Motown has granted PolyGram the exclusive right to manufacture, distribute and market all master recordings owned or controlled by Motown in all countries excluding the United States. The agreement took effect in Canada Sept. 28, 1991, and will take effect in the remaining territories on Jan. 1, 1992. (The U.S. sales and distribution agreement took effect on Sept. 29, 1991).
Motown Record Corporation, an American musical institution, was founded in 1959 by Berry Gordy. It built one of the most valuable and prestigious catalogues in the business with recordings by many legendary American artists such as Marvin Gaye, Smokey Robinson, the Jackson Five, the Four Tops, the Supremes, Stevie Wonder and the Temptations, to name a few. In 1988, Gordy sold Motown to a consortium of Boston Ventures, an investment group, and MCA Inc. The new company, Motown Record Company, L.P., was organized under the aegis of Jheryl Busby, who previously was the highly successful head of MCA's black music division. The "new" Motown's current roster includes veterans Stevie Wonder, the Temptations, Diana Ross and Lionel Richie, and hot newcomers Johnny Gill, Another Bad Creation and Boyz II Men.
"PolyGram is an acknowledged leader in worldwide music," said Motown President/CEO Jheryl Busby. He added, "PolyGram's formidable distribution, reach, marketing savvy and expertise throughout the world will help maximize the potential of Motown's artists and repertoire -- both old and new. We are extremely pleased to entrust our recordings to a company that has constantly demonstrated both its commitment to breaking new acts and its skill in catalogue exploitation.
Alain Levy, PolyGram's president and chief executive officer, said, "We are delighted to be able to extend our initial agreement with Motown into a worldwide partnership. We are proud to be able to offer to Motown our expertise as a world leader outside of the United States. We look forward to translating Motown's success in the U.S. and throughout the world."
PolyGram, one of the three largest record companies in the world, is listed on the Amsterdam Stock Exchange and New York Stock Exchange.
/CONTACT: Amanda Whitwell in London, 071-493-8800, or Dawn Bridges, 212-333-8357, both of PolyGram; or Michael Mitchell, 213-468-3553, or Karen Sherlock, 213-468-3575, both of Motown/
(PLG) CO: PolyGram N.V.; Motown Record Company L.P. ST: New York, California IN: ENT SU: LIC KD -- NY007 -- 1004 11/05/91 07:00 EST