In a move set to reshape the global classical music industry, Kuke Music Holding Limited has acquired a controlling interest in Naxos Music Group, one of the world’s most influential independent classical labels.

The landmark deal, announced on September 25, gives Beijing-based Kuke about 70 percent ownership of Naxos through two simultaneous transactions worth roughly US$106 million (AU$164 million).

Klaus Heymann. Photo supplied

Founded in 1987 by Klaus Heymann and headquartered in Hong Kong, Naxos has built an unrivalled catalogue of tens of thousands of recordings and millions of digital tracks. It was a pioneer of digital distribution, launching the Naxos Music Library in the mid-1990s and supplying universities, libraries and broadcasters worldwide.

Naxos Musical Group encompasses about 17 labels including Naxos Records, Naxos Audiobooks, and Naxos Books (ebooks). There are about an additional 50 labels that are independent of the Naxos Musical Group with a wide range of offerings.

Kuke already dominates China’s classical market with content licensing, education technology and digital subscription services. The Naxos acquisition will create further opportunties for cross-border licensing deals, bundled education products and new technology initiatives such as...