As MBW reported earlier today (August 7), Sony’s global music rights business posted double-digit growth in the second quarter (fiscal first quarter) – revenue growth Annual increase of 11.4%.
There’s a fly in the ointment, however: Sony’s recorded music streaming revenue (adjusted in U.S. dollars) rose 5.0% compared with the same period last year.
That’s much slower than we expected from Sony. Example: The company’s recorded music streaming revenue grows Annual growth of 10.6% In the 2024 first quarter calendar, Annual increase of 12.3% Q4 2023, and Annual increase of 9.5% 2023 Q3 Calendar.
For the record, music streaming growth is slowing sony What makes it particularly striking is that Part of Universal Music Group The much-discussed second-quarter 2024 results were released last month.
Among these results, Universal MG’s Total recorded music streaming revenue, including ad funding and subscriptions, increased 4.1% compared with the same period last yearand a lot less than the numbers we’re used to seeing from major music companies.
(UMG’s subscription streaming revenue grows Annual growth of 6.9% In the second quarter, While its ad-funded streaming revenue fell Annual growth of 3.9%. Taken together, this results in 4.1% compared with the same period last year rise. Sony doesn’t detail its streaming numbers Split into subscription and ad-funded; it only publishes mixed data.
Chief Operating Officer/Chief Financial Officer, Sony Corporation, Hiroki TokioSony’s goal of growing its global recorded music business (driven by streaming) at a “high single-digit” rate has been previously discussed.
is also like this 5.0% compared with the same period last year Does the rising calendar quarter represent a turning point? the moment when Sony’s Is streaming growth entering a new, more conservative phase?
This is to Sony Corporation Analyst Management Today Mikio Hirakawa from Bank of America. The response was calm.
Naomi Matsuoka, Sony Senior Vice President explains sony Facing similar trends Universal Music Group iIn the calendar second quarter, streaming price increases are now fully “annualized”; that is, Sony’s year-over-year streaming growth rate is not growing significantly because the most recent streaming service price increases occurred during the same period last year.
Matsuoka It was also confirmed that, like Universal Pictures, Sony had also seen smaller Ad-funded streaming revenue drops year-over-year this quarter, (“Ad-streaming service revenue … is declining,” she said). Obviously, tThis will drag down Sony’s total recorded music streaming revenue figures.
also, Matsuoka explained that although Sony’s music streaming revenue is really growing 5.0% compared with the same period last year Sony also calculated a more granular constant currency figure on a second-quarter basis in U.S. dollars: Slightly higher.
She said this showed that Sony’s true year-over-year growth in global recorded music streaming revenue in the second quarter was “in 6% scope”.
“We said before [recorded music streaming revenues grew] 5% in US dollars [in calendar Q2]. But if you keep observing [currency] By our calculations, the number is higher – in the range of 6%. So overall, the growth rate of streaming media is in line with our predictions.
Naomi Matsuoka, Sony Corporation
commented Matsuoka: “for [music] Streaming… overall growth [for calendar Q2] In line with previous trends. Growth appears to be slowing. The factors behind this are for [calendar Q2]over a year ago… Prices for Multiple DSPs [were raised], so now its impact has diminished. and [in terms of] Revenue from ad-streaming services fell slightly.
“However, we have said before [recorded music streaming revenues grew] 5% In US dollars. But if you keep observing [currency] Insofar as it is higher – in 6% Based on our calculation range. So overall, the growth rate of streaming media is in line with our predictions.
(Quick explanation: Typically, in order to arrive at “constant currency” numbers that better reflect its global music companies, Sony converts its reported financial data in Japanese yen to U.S. dollars at current quarterly rates. It does this in the calendar second quarter, resulting in 5.0% compared with the same period last year Sony has confirmed growth figures for music streaming this quarter. However, as pointed out Matsuokato obtain a more accurate constant currency figure – i.e. 6% One – The company also appears to use a more complex formula that takes into account FX from multiple regions around the world.
“In the medium term, [global music rights] The market is expected to continue growing at mid- to high-single-digit average annual growth rates, driven by increasing ARPU and further growth in emerging markets.
Hayakawa Sadahiko, Sony Corporation
Earlier in the call, Sony Corp.’s head of finance and investor relations, Hayakawa SadahikoExplaining that Sony now believes the music rights market “is expected to continue to grow at mid- to high-single-digit annual growth rates, primarily due to [streaming] ARPU and further growth in emerging markets”.
There used to be actually one Double-digit growth figures By the way, here are the quarterly streaming results released today by Sony – the company’s music publishing division.
sony global music publishing The segment’s revenue continues to increase Annual increase of 19.6% Calendar Quarter 2 (in USD).
When combined, music recorded by sony and Music publishing streaming revenue reached together US$1.63 billion In calendar second quarter, up Annual increase of 7.95%.global music business
