BMG parent company Bertelsmann's income fell in the first half of the current financial year, with earnings at 417 million euros, down from 693 million euros in the same period last year. The German media conglom said the poor figures were primarily down to the previously reported Napster settlements - in which the media firm paid off content owners who were still suing it for investments it made in the original Napster P2P network back in the day. But those settlements, Bertelsmann say, may have been costly, but have strengthened the company.
Top man Gunter Thielen told reporters: "Bertelsmann had a gratifying first half. Most of our businesses are on plan after six months. We can safely say that Bertelsmann is on track. We are also pleased to have arrived at important out-of-court settlements in connection with Napster, which eliminates a potential significant risk for Bertelsmann's future".
Bertelsmann used the financial report to also make comment on the European Commission's much previously reported review of the merger of its recorded music operations with that of Sony Music to create SonyBMG. As previously reported, the European courts ruled that the EC should never have allowed the merger, forcing the Commission to consider the merger proposal a new. Bertelsmann say they now expect a verdict from the EC in October, and that they are confident the merger will be approved.