Sony Music Post Solid Quarter – Variety2 min read
The music segment of Sony Music posted a strong fiscal year of the fourth quarter of 2012, with revenue of 27% to 64 1,641.7 million per year, music recorded 14% to 0 1.07 billion and 15% of dollars released. Body music earnings also rose 10.9% to about 200 200 million, driven by strong markets in Japan and Germany.
However, the visual media platform, which is also a part of the music division of the Japanese company, has declined by about 25%, which has led the overall music division to finish the quarter flat.
Top performers in the quarter included the release of Harry Styles, Future, Doza Cat, Jackboys, Lil Nass X, Camilla Cabello, Luke Combs and Travis Scott.
Music has increased revenue by 5% in one year to end with .8 8787 billion (JPY 80 billion). However, the department’s operating income fell from one-third to ৩ 2.15 billion (JPY 222 billion) to ৩ 1.31 billion (JPY 142 billion). Sales were boosted by music publishing as a result of the integration of EMIs, but there were also higher sales for recorded music by streaming revenue growth. The lower part of the sector was hit by accounting changes in the case of past acquisitions.
Although the agency showed little impact from the coronavirus epidemic – which did not catch up in North America until the last week of the quarter – it warned of problems ahead.
“Around the world, especially in the United States, the release of new music has been largely delayed because some artists have not been able to record songs and music videos,” the company said in a statement. “Impact on profit from new music delays is currently limited to the United States and other countries where the music flow ratio is high, but in countries like Japan and Germany, where the music flow ratio is relatively low, sales of CDs and other packaged media are declining due to travel bans.
“Ticket earnings, merchandising earnings and video earnings are declining, due to the suspension and cancellation of concerts and other events in Japan and other regions,” it continues. “As advertising spending declines worldwide, revenue from ad-supported streaming services and revenue from music licenses in TV commercials is declining. In addition, delays in the production of motion pictures and TV shows are causing music licensing revenue to decline.