/ 22 May 2006

Warner Music and Johncom in joint venture

Warner Music International (WMI) and Johnnic Communications (Johncom) on Monday announced a joint venture to create Warner Music Gallo Africa (WMGA), a new music-based content company in South Africa.

The deal will bring leading global music company WMI together with Johncom, South Africa’s innovative and ambitious media and entertainment company, and Johncom-owned Gallo Music, South Africa’s largest independent record label.

Such a powerful combination will place WMGA at the forefront of South Africa’s vibrant music scene at a time when the country’s economic growth and adoption of new entertainment technologies is opening the door to myriad future opportunities.

WMGA will house worldwide digital rights to Gallo Music’s domestic repertoire, an exciting blend of contemporary artists and award-winning stars from the label’s rich 80-year archive, including Ladysmith Black Mambazo, Lucky Dube, Pro-Kid, Lusanda Spiritual Group, Thandiswa and Simphiwe Dana.

This announcement marks the first time Gallo Music’s entire catalogue will be made available in digital formats. In addition, WMGA will be the licensee for WMI’s line up of international acts in sub-Saharan Africa, opening up a wealth of new possibilities for the promotion and distribution of material by stars including Red Hot Chilli Peppers, Sean Paul, Michael Bublé, James Blunt and Josh Groban.

Johncom is in the process of extending its reach into sub-Saharan Africa, with plans to open new retail outlets alongside its established operations in Nigeria and Kenya.

Ivor Haarburger will manage WMGA, combining his new role of CEO WMGA with his current role of CEO Gallo Music Group. He will report to Gerolamo Caccia, COO Warner Music International, and Prakash Desai, Johncom deputy CEO. WMGA will be headquartered in Johannesburg, South Africa.

Patrick Vien, chairperson and CEO, WMI, commented, “In addition to creating a huge opportunity in South Africa, this deal also allows us to leverage our global digital distribution footprint to promote leading African repertoire to fans all over the world.

“WMGA is the latest step forward in our ambition to make a broad range of diverse music content available to consumers wherever, and however, they want it.” — I-Net Bridge