Sony Music generates $2.3bn in Q3 2023

According to Sony Group Corp’s calendar Q3 2023 (fiscal Q2 2023) results announced on 9 November, this translated to a more than 13% year-over-year (YoY) revenue improvement despite a slowdown in physical sales.

In monetary terms, Sony’s overall music rights operation generated approximately $178m more in calendar Q3 2023 than in the prior-year quarter.

In terms of recorded music, Sony Music recorded $1.15bn in streaming revenue, up about 14.43% YoY and 5.44% quarterly, as well $528m (up roughly 10.90% YoY) in other recorded revenue.

Physical products like vinyl and CDs generated $138m (down 14.39% YoY), against $54m (down 42.18% YoY) for permanent downloads including ringtones, according to the document.

Still on the recorded music category, revenue from live performances, merch, licensing (sync and more), and others reached $336m, up approximately 51.62% YoY. By revenue, bestselling projects in the quarter were Travis Scott’s Utopia, SZA’s SOS, Harry Styles’ Harry’s House, Luke Combs’ Gettin’ Old, and Miley Cyrus’ Endless Summer Vacation, respectively.

In terms of music publishing, revenue grew to $546m, up about 12.57% YoY. In the category, streaming revenue accounted for $320m), a YoY increase of 14.79% and a quarterly boost of 16.41.

The primary music segment’s Q3 2023 operating income, including visual media and platform, was $535m, against adjusted operating income before depreciation and amortisation (OIBDA) of $641m. The company reported that visual media and platform’s contribution “was approximately 20% of the operating income of the segment.”

As for next quarter predictions, Sony has increased its sales forecast by $462m to $10bn. It has also raised anticipated operating income by $99m to $2bn.

Sony Music’s 10 biggest recorded music projects in Q3 2023 quarter in order of global revenue generation are:

1. Travis Scott – UTOPIA
2. SZA – SOS
3. Harry Styles – Harry’s House
4. Luke Combs – Gettin’ Old
5. Miley Cyrus – Endless Summer Vacation
6. Beyoncé –RENAISSANCE
7. Lil Durk – Almost Healed
8. Doja Cat – Scarlet
9. Luke Combs – This One’s for You
10. Harry Styles – Fine Line