Sony BMG Music Entertainment Sales is merging its digital and physical distribution business into one operation, with Thomas Hesse, who has been named president of the newly created Global Digital Business & U.S. Sales. Hesse will oversee all aspects of the U.S. sales division in addition to the company’s digital revenues worldwide. Variety reports he will still be based in New York and will continue to report directly to COO Tim Bowen. Hesse was named president, global digital business, in 2004 after serving as BMG’s chief strategic officer for two years.