Profits jump for Sony Music as streaming boosts revenues up to $2.5 Bn

Profits jump for Sony Music as streaming boosts revenues up to $2.5 Bn

Leading music company, Sony Music has reportedly announced that it has recorded an explosive Q4 (fourth quarter) growth, with the company’s operating income surpassing ¥40.62 billion (approximately $383.6 million) upon revenue of over ¥263.37 billion (approximately $2.49 billion).

As per reports, this represents a jump of 37.8%, on the basis of USD, from the company’s 2020 total income of ¥30.34 billion (approximately $278.3 million) along with a 30.4% jump in revenue from approximately ¥208 billion (over $1.91 billion).

Online streaming led the growth with a jump of 49.1%, to over ¥101.3 billion (approximately $956.66 million) from the year prior’s ¥70 billion (approximately $641.7 million). Meanwhile, Sony’s visual media platform also contributed a growth of 36.5%, bringing in over ¥67.42 billion (approximately $636.6 million). Most of the visual platform’s revenues came from the Demon Slayer movie as well as mobile video games.

Additionally, the company also received a boost of $100 million in terms of revenue because of the recategorization of accounting for distributing contracts to gross sales basis from a net basis. Without this change in the accounting, Sony still generated a 25% boost in revenue, based on reliable calculations.

Moreover, at least two-thirds of the $100 million flowed in to streaming revenue, which fueled the channel’s increase of 49%.

With respect to annual results, the company’s music operations, which encompasses Sony Music Japan and Sony Music Entertainment along with the Sony Visual Media/Platform, produced an operating income of ¥188.1 billion (approximately $1.77 billion) on revenue of ¥927.3 billion (over $8.74 billion).

This represents an increase of 35.4%, on a dollar basis, in terms of operating income from last year’s total of over ¥142.35 billion (nearly $1.31 billion) as well as a 13.3% jump from Sony’s 2019 revenue of ¥838.6 billion (over $7.71 billion).

The company forecasts that revenues from its visual media/platform and music operations would grow to more than ¥990 billion yen by the end of 2021.

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