Padulo Integrated’s contribution to the successful launch of BMG Music Service Canada early this year has netted it some of BMG’s u.s. business.
Padulo will be developing customer retention programs for BMG Direct, the u.s. music club based in New York City.
While the annual ad budget of BMG Canada is around $5 million, the u.s. company, which had more than US$600 million in sales in 1992-93, spends around US$80 million.
Rick Padulo, president and chief executive officer of the Toronto-based agency, credits the vote of confidence from bmg to the fact the Canadian launch garnered a response 300% greater than the company expected.
Despite landing the u.s. account, Padulo says he has no plans to open a u.s. branch agency as yet.
‘We plan to do as much as we can out of Toronto, especially from a production point of view,’ he says.
‘bmg is supporting that plan, and likes the idea of keeping production costs low.’
BMG Direct is a unit of BMG Entertainment, the $4.2 billion music and entertainment division of worldwide media company Bertelsmann AG, of Germany.
Bertelsmann’s holdings including Arista Records, RCA Records, BMG Classics label, progressive music label Zoo Entertainment, BMG Video International, BMG Music Publishing and BMG New Technologies. PS
