Under Hart Ostrowski, a more servicey Bertelsmann?

New Bertelsmann CEO Hartmut "Hart" Ostrowski and the Mohn Family may not have the stomach to take on the current challenges the media industry faces By SDH New Bertelsmann CEO Hart Ostrowski was the man who ran Bertelsmann’s services business Arvato. Known for going behind the backs of his bosses to secure deals that later turned out to be profitable Hart was and still is a shining star in the Bertelsmann stable of executives. Even way back in 1992 when Bertelsmann was ruled by then CEO Mark Woessner, the company wasn’t sure what business it wanted to be in. Mark Woessner had to remind Ostrowski that Bertelsmann wasn’t a services company it was a media company. Fast-forward to the present, and what we find is Bertelsmann trapped in between two identities, services and media. In a feature article about Ostrowski on FinancialExpress.com, he is painted as strictly services executive that may be looking to transform Germany’s biggest media company into a services business. It’s easy to jump to the conclusion that Ostrowski is taking the easy way out by focusing on the business he knows how to deliver on. It’s also easy to jump to the conclusion that Ostrowski is afraid to take on the current challenges the media industry faces like the internet, and is opting to focus on what he knows to shine bright for the Mohn Family. However if this is the case, this may not be just Ostrowski’s plan. Was his promotion from CEO of Bertelsmann services business Arvato to Bertelsmann CEO a sign that the Mohn Family wants out of the exhausted media business? Well one can jump to that conclusion as well. In the last couple of months published reports have serviced about the company wanting to get out of the music business by unloading it’s 50% stake in Sony BMG. Then just a few weeks ago Ostrowski said that the company was looking at all options regarding its book and CD club businesses including a possible sale. If Bertelsmann were to sell off these assets, the company will only be left with a finger in the media business via its RTL division. Such events would strip Bertelsmann of its media power status and Germany of its biggest media company.