Home » 27 April 2019 » Sony Music’s 2018 revenue dips, blames declining physical sales

Sony Music’s 2018 revenue dips, blames declining physical sales

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For the fiscal year ending March 31st, 2019, Sony Music brought in ¥427 billion ($3.8 billion) in recorded music revenue.

This figure represents an 8.6% drop year-over-year. Sony attributed the poor results to a change in accounting and declining physical sales.

Travis Scott’s Astroworld once again emerged as the best-selling recorded music project. Camila Cabello’s Camila, Luke Combs’ This One’s For You, George Ezra’s Staying at Tamara’s, and Calvin Harris’ Calvin Harris Releases rounded out the top five.

The major label reported ¥266.8 billion ($2.4 billion) in digital revenue, up 7.3% year-over-year. Of that amount, download revenue fell 26.9% to ¥39.3 billion ($354 million). Underscoring how much the medium’s growth has slowed, streaming revenue increased 13.2% to ¥227.5 billion ($2.1 billion). Physical sales revenue continues on the decline, plummeting 50.8% to ¥89.6 million ($807.6 million). Other revenue – including public performance, broadcast, and sync licensing along with merchandise – grew 8.5% to ¥70.6 billion ($636.5 million).

For its 2018 fiscal year, the major music label reported an operating income (profit) of ¥232.5 billion ($2.1 billion), up 82% year-over-year.

Speaking about its music division, Sony Corp. reported sales remained flat year-over-year. Sony Music reported higher sales from its music publishing division, Sony/ATV, thanks to its acquisition of EMI Music Publishing.

 

Fourth quarter report

In its Q4 2018 report ending March 31st, 2019, Sony Music brought in ¥104.4 billion ($946.3 million) in recorded music revenue, down 5.1% over the same period last year.

The music division of Sony Corp. reported that physical sales revenue dropped 55.4% to ¥19.5 billion ($176.9 million). Total digital revenue grew 3.4% to ¥64.6 billion ($585 million). Download revenue declined 31.6% to ¥9 billion ($81.5 million). Streaming revenue grew 9.2% to ¥55.6 billion ($503.7 million). Other revenue – including public performance, broadcast, and sync licensing along with merchandise – grew 15.9% to ¥20.3 billion ($184.1 million).

For the quarter ended March 31st, 2019, Travis Scott’s Astroworld emerged as the best-selling recorded music project. 21 Savage’s i am > i was, Khalid’s Free Spirit, Future’s Future Hndrxx Presents: The Wizrd, and Backstreet Boys’ DNA rounded out the top five.

In 2017-18, Streaming helped Sony Music revenues to top $4 billion.

 

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Abhishek Singh

Author: Abhishek Singh

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