Sony Music streaming revenues spike in Q1

The news was shared through the Sony's Q1 earnings announcement, which is based on the company’s fourth fiscal quarter.

The major music rights holder also said physical music revenues were up 10.9% year-on-year to $196.3m. The company’s total recorded music revenues also rose to $1.074bn in Q1, representing a 13.5% year-on-year increase. However, overall recorded music revenues (-7.2%) and streaming revenues (-4.1%) in Q1 were down, compared to Q4 in 2019.

Sony listed artists whose projects contributed the most revenue, including Harry Styles, Future, Doja Cat, Jackboys, Ozzy Osbourne, Lil Nas X, and Luke Combs.

It estimated that the effects of the COVID-19 pandemic directly resulted in a 1% decline year-on year in Q1, in consolidated operating income across its music division, which includes recorded music, publishing, and visual media and platform.

“Around the world, but especially in the US, the release of new music is being delayed primarily due to some artists being unable to record songs and music videos,” Sony Corporation said.

“The impact on profitability from the delays in new music is limited at this time in the US and other countries where the proportion of music that is streamed is high.

"But in countries like Japan and Germany, where the proportion of music that is streamed is relatively low, CDs and other packaged media sales are decreasing due to restrictions on going outside.”

Sony Corp’s music publishing arm, which comprises Sony/ATV (including EMI Music Publishing) and Sony Music Publishing Japan, reported external quarterly revenues of $367.6m in calendar Q1. That shows a $47m gain and indicates a 14.6% growth rate year-on-year.

Sony Corp’s overall music division also posted a quarterly operating profit increase from $197.5m in Q1 last year to $278.3m, representing 40.9% year-on-year.

The music division – including recorded music, publishing, and visual media and platform – reported a 0.6% drop year-on-year, which translates to $1.908bn in sales. The shrinkage was due to a dip in visual media and platform as opposed to the company’s recorded music or music publishing performance.

“Ticket revenue, merchandising revenue and video revenue are decreasing, as concerts and other events are being postponed and cancelled in Japan and other areas. Due to a global reduction in advertising spending, revenue from advertising-supported streaming services and revenue from the licensing of music in TV commercials is decreasing," it said.

View the full report here.

Note: Sony’s financials were converted from Japanese yen into US dollars and could be distorted by foreign exchange rates.