Sony’s international music rights operation – throughout recorded music and music publishing – generated USD $2.54 billion within the three months to finish of June 2024.
That’s in accordance with MBW’s calculations primarily based on Sony Group Corp’s calendar Q2 2024 (fiscal Q1 2024) outcomes, as introduced by the Japanese agency at present (August 7).
The $2.54 billion determine was up 11.4% year-on-year (vs. calendar Q2 2023) at US dollar-converted fixed forex.
In financial phrases, Sony’s total music rights operation (recorded music plus music publishing) generated roughly $261 million extra in calendar Q2 2024 than within the prior-year quarter.
[Note: Corporately speaking, Sony Group’s global music operation includes recorded music, plus music publishing, plus ‘Visual Media & Platform’. The final category primarily covers mobile games and animation projects, and has been omitted from MBW’s revenue calculations in this analysis.]
Sony’s recorded music operation
Sony’s international recorded music operation generated USD $1.92 billion in calendar Q2 2024, up 10.8% YoY versus the equal quarterly interval of the prior yr.
Inside that calendar Q2 2024 international recorded music end result, streaming generated $1.26 billion, up 5.0% YoY.
(This ‘streaming’ quantity combines each subscription and ad-funded streaming revenues generated by Sony’s international recorded music operation.)
Quarterly revenues from bodily music gross sales in calendar Q2 2024 hit USD $151.6 million (down 16.9% YoY).
Sony’s ‘Different’ fiscal class inside recorded music generated $466.4 million in calendar Q2 2024, up 59.1% YoY on the $293.1 million generated within the prior-year quarter.
This latter class (‘Different’) consists of license income (public efficiency, broadcast and sync), merchandising, and reside efficiency revenue.
Sony famous in an investor replace at present that, alongside streaming development and forex trade profit, the agency’s calendar Q2 music income achieve had been pushed by “greater revenues from merchandising and reside occasions”.
Based on Sony Corp‘s outcomes, Sony Music Leisure‘s ten largest recorded music tasks within the calendar Q2 2024 quarter (ex-artists signed in Japan), so as of worldwide income era, had been as follows:
- Beyoncé, COWBOY CARTER
- Future & Metro Boomin, WE DON’T TRUST YOU
- SZA, SOS
- Travis Scott, UTOPIA
- Luke Combs, Gettin’ Outdated
- Tyla, TYLA
- Tate McRae, THINK LATER
- Luke Combs, This One’s for You
- Doja Cat, Scarlet
- 21 Savage, american dream
Sony’s Music Publishing operation
Sony’s international music publishing operation – led by Sony Music Publishing – generated USD $621.3 million within the three months to finish of June this yr.
That quarterly income determine, on the US greenback stage, was up 13.3% year-on-year.
Sony’s international music publishing operation derived $363.2 million of its quarterly revenues within the calendar Q2 2024 interval from streaming.
That publishing streaming determine was up 19.6% year-on-year.
Sony’s international music income
Sony Corp additionally at present issued some revenue numbers for its company Music division within the three months to finish of June 2024.
(The next figures embrace Sony’s operations throughout Recorded Music, Music Publishing plus Visible Media & Platform.)
In calendar Q2 2024 (fiscal Q1 2024), Sony’s company Music division posted a quarterly working revenue of 85.9 billion Yen (USD $552m).
That represented an working margin of 19.4%, from complete divisional quarterly revenues (once more, together with ‘Visible Media & Platform’) of 442.0 billion Yen (USD $2.84bn).
Sony Corp moreover presents to buyers its Adjusted OIBDA efficiency in every quarter (see under) – a metric additionally utilized by Warner Music Group to current its earnings.
In calendar Q2 2024 (fiscal Q1 2024), Sony’s Music division posted an Adjusted OIBDA of 107.7 billion Yen (USD $692m).
That represented an Adjusted OIBDA margin from complete divisional quarterly revenues of 24.4%.
Be aware: All YoY proportion rises/falls revealed on this story are calculated at fixed forex on the US dollar-converted stage. MBW makes use of Sony’s personal quarterly common forex charges for these calculations.
See under for the breakdown of Sony’s newest (fiscal) quarterly figures for music in Japanese Yen, as revealed by Sony Group Corp at present.
For this evaluation, MBW has calculated Sony’s financials from Japanese Yen into US {dollars} on the following prevailing trade charges in every quarter, as offered by Sony Corp:
- Calendar Q1 2020: 109.0 Yen per USD
- Calendar Q2 2020: 107.6 Yen per USD
- Calendar Q3 2020: 106.2 Yen per USD
- Calendar This autumn 2020: 104.5 Yen per USD
- Calendar Q1 2021: 105.9 Yen per USD
- Calendar Q2 2021: 109.5 Yen per USD
- Calendar Q3 2021: 110.1 Yen per USD
- Calendar This autumn 2021: 113.7 Yen per USD
- Calendar Q1 2022: 116.1 Yen per USD
- Calendar Q2 2022: 129.4 Yen per USD
- Calendar Q3 2022: 138.2 Yen per USD
- Calendar This autumn 2022: 132.3 Yen per USD
- Calendar Q1 2023: 135.4 Yen per USD
- Calendar Q2 2023: 137.0 Yen per USD
- Calendar Q3 2023: 144.4 Yen per USD
- Calendar This autumn 2023: 147.9 Yen per USD
- Calendar Q1 2024: 148.2 Yen per USD
- Calendar Q2 2024: 155.6 Yen per USD
By making use of these trade figures to every relevant interval, we successfully get a US-leaning fixed forex image of Sony Music’s efficiency.
This isn’t an ideal system; it dangers overplaying Sony Music Leisure’s international enterprise barely by changing a bit of revenues from Sony Music Leisure Japan (which might normally be straight-reported in Yen) into US {dollars}.
Nevertheless it gives us with a cleaner reflection of the efficiency of New York-based Sony Music Leisure exterior of FX distortion, as a result of the corporate needed to convert its US forex into Yen within the first place for Sony Corp’s outcomes. The identical is true for US-based Sony Music Publishing.
MBW believes this forex trade system is the yardstick used internally at Sony Music Group‘s HQ in New York.
Sony’s personal description of its three company music divisions is as follows:
- Recorded Music – Streaming consists of the distribution of digital recorded music by streaming; Recorded Music – Others consists of the distribution of recorded music by bodily media and digital obtain in addition to income derived from artists’ reside performances;
- Music Publishing includes the administration and licensing of the phrases and music of songs;
- Visible Media and Platform consists of the manufacturing and distribution of animation titles, together with recreation purposes primarily based on the animation titles, and varied service choices for music and visible merchandise.
Inside / protecting the primary two divisions listed above:
- Sony Music Publishing, run by CEO & Chairman Jon Platt, is Sony’s US-headquartered music publishing operation.
- Sony Music Leisure, run by CEO Rob Stringer, is Sony’s US-headquartered recorded music operation.
- And Sony Music Group – additionally run by Rob Stringer, as Chairman – is Sony’s US-headquartered umbrella group for each Sony Music Leisure and Sony Music Publishing.
Music Enterprise Worldwide
