Digital Accounted for More Than Half of Sony Music's 2016 Recorded Music Revenues
publish date: 2017-04-28
The label's best-sellers included Beyoncé's Lemonade, S.a.s.This is Acting and various hits from The Chainsmokers.
Sony Corp.'s music operations reported $677 million (75.8 billion yen) on sales of $5.8 billion (647.7 billion yen) for the year ended March 31. That represents a 7.6% decline from the $773 million (86.5 billion yen) in operating income from the prior year when Sony's music operations had total sales of $5.5 billion (619.2 billion yen).
Best-selling music titles included Beyoncé's Lemonade, various hit tracks from The Chainsmokers and Sia's This is Acting. The company said that the 4.6 percent sales increase (11 percent on a constant currency basis) was driven by the performance of "Fate/Grand Order," a game application for mobile devices in Japan, and by higher recorded-music sales.
Meanwhile, the lower operating income for 2017 is due to a one-time gain of $151 million (18.1 billion yen) in the prior year, due to a re-valuation of distribution company The Orchard, acquired in 2016, that translated into a higher valuation that boosted operating income. Without that one-time gain, Sony's music operation income would have produced an 8.8 percent gain.