The growth of streaming continues to drive the overall growth of recorded music and music publishing, as the format grew 60.3% to a combined total of 132.7 billion yen (1.2 billion), compared to 2020 when recorded music and music publishing streaming revenue combined to 82.6 billion yen ($ 769.6 million).
Sony has cited hit titles like “Fine Line” by Harry Styles; the Lil Nas X singles “Sun Goes Down” and “Montero (Call Me By Your Name)”; Polo G Hall of fame; At Lil Tjay Destiny 2 Victory; Kid LAROI’s F * CK LOVE; Doja Cat’s Planet her and Hot pink; by KANG DANIEL YELLOW; DJ Khaled KHALED KHALED; and Luke Combs’ What you see is what you get, among other things, as a driver of sales during the quarter.
Breakdown of income by musical operation:
—Recorded music generated 151.9 billion yen ($ 1.39 billion) in the first quarter, an increase of almost 55% from the first quarter of 2020 (98.1 billion yen, or 911, $ 6 million). This translates to 76.3% of music operations, excluding visual media / platforms, up from 75.9% in the previous year period.
—Music publishing, which includes Sony Music Publishing and the publishing activities of Sony Japan, grossed 47.1 billion yen ($ 430.4 million), an increase of 51.6% from 31 , 1 billion yen ($ 289 million) accounted for the previous year. As a percentage of music operations, again excluding visual media / platforms, this equates to 23.7% in the first quarter of this year, up from 24.1% in the first quarter of 2020.
Looking at the recorded music operation for the first fiscal quarter of 2021:
—Streaming revenue increased 58.4% to 109.1 billion yen (996.5 million) from 68.9 billion yen ($ 640.3 million)
—Downloads fell 11.1% to 6.8 billion yen ($ 61.7 billion) from 7.6 billion yen ($ 70.7 million)
—Global digital revenues totaled 115.9 billion yen ($ 1.06 billion) compared to 76.5 billion yen ($ 711.1 million), an increase of 51.4%
– Physical sales rose 63.8% to 20.8 billion yen ($ 189.8 million) from 12.7 billion yen ($ 117.9 million) the year before, when the US industry brick-and-mortar retail outlet has been completely shut down due to the Covid-19 pandemic
—Other sources of revenue, including merchandising, live concerts, master recording royalties and synchronization, totaled 15.2 billion yen ($ 139.1 million), an increase of 71. 5% of 8.9 billion yen ($ 82.6 million)
As a percentage of recorded music revenue, this breaks down to streaming at 71.8%; 4.5% downloads; physical at 13.7%; and other income at 10%. In the first fiscal quarter of the previous year, these percentages amounted to 70.2%; 7.8% downloads; 12.9% physical; and others at 9.1%.
Within music publishing:
—Streaming revenues reached 23.6 billion yen ($ 215.6 million), up 69.8% from 13.9 billion yen ($ 129.2 million)
—Other income totaled $ 23.5 billion ($ 214.8 million), an increase of almost 37% from the 17.2 billion yen in the previous corresponding period ($ 159.8 million). )
As a percentage of publishing revenue, this corresponds to a split of almost 50/50 compared to the period of the previous year, when the ratio was 44.7% in streaming and 55.3% for others. . The company also said its music publishing catalog now includes 5.03 million songs, up from 4.86 million.
Looking ahead, Sony Corp. adjusted its forecast for the entire music segment, including visual media / platform operations, to project annual revenues of 1.04 trillion yen and operating profit of 190 billion yen. In April, the company had projected operating profit of 162 billion yen on 990 billion yen in revenue. The company said potential future revenue drivers include the exits of Bleachers, Chris Young, John Mayer, Leon Bridges, Niko Moon, WALK THE MOON, Yebba and Khalid.
This story uses an exchange rate of 109.5 yen to $ 1 for the fiscal quarter ended June 30, 2021; and 107.6 yen at $ 1 for the fiscal quarter ended June 30, 2020.