As MBW reported today (August 7), Sony’s global music rights operations posted double-digit growth in the second quarter (fiscal first quarter). Revenues were up. 11.4% compared to the same period last year.
But there was one problem: Sony’s recorded music streaming revenue grew in adjusted U.S. dollar terms. 5.0% increase over previous year.
This was a much slower growth in streaming than we had expected from Sony. For example, the company’s recorded music streaming revenue grew by: 10.6% compared to the same period last year In the calendar for the first quarter of 2024 12.3% compared to the same period last year In the 4th quarter of 2023 calendar 9.5% increase over previous year As of the 3rd quarter of 2023 calendar year.
This recorded slowdown in music streaming growth Sony The reasons why this is particularly noteworthy are as follows: Universal Music Group’s The much-discussed Q2 2024 results, announced last month.
Within the results, UMG’s Total recorded music streaming revenue (ad-funded and subscription) increased. 4.1% compared to the same period last yearAlso, this is a much smaller number than we’re used to seeing from the major music companies.
(UMG’s subscription streaming revenue increased. 6.9% compared to the same period last year In the second quarter, While streaming revenue from advertising is declining 3.9% over previous year. When combined, this results in: 4.1% compared to the same period last year Rise. Sony doesn’t analyze streaming numbers. It is divided into subscription and advertising funding, and only the combined figures are published.)
COO/CFO, Sony Corporation Hiroki TotokiWe’ve previously discussed our goal for Sony’s global music business, driven by streaming, to grow at a “high single-digit” rate.
That’s why it’s like that too 5.0% increase over previous year Does the rise of the Q2 calendar mark some kind of turning point? Sony’s Has streaming’s growth trajectory entered a new, more conservative phase?
That was the question raised. Sony Corporation Management by analysts today Mikio Hirakawa At Bank of America. The reaction wasn’t much different.
Naomi Matsuoka, Sony Corporation SVPExplained Sony faced a similar trend Universal Music Group iIn Q2, streaming price increases were now fully ‘annualized’, meaning Sony didn’t see a significant increase in streaming growth year-over-year, as recent streaming service price increases were seen in the same quarter last year.
Matsuoka Also like Universal, Sony confirmed that they had seen the small one. YoY decline in quarterly advertising funding streaming revenue(“Advertising streaming service revenues are… declining a little bit,” she said). Clearly,This would have resulted in a decline in Sony’s total music streaming revenue.
furthermore, Matsuoka As I explained, Sony’s music streaming revenue has actually increased. 5.0% increase over previous year At the U.S. dollar conversion level for the second quarter, Sony Corporation also calculated more detailed constant currency figures. It was a little higher.
She said this was Sony’s actual YoY global record music streaming revenue growth rate in Q2. 6% range”.
“As we said before, [recorded music streaming revenues grew] 5% in dollars [in calendar Q2]. But if you keep looking at it [currency] In terms of terms, it’s higher. Our calculations put it in the 6% range. Overall, the streaming growth rate is in line with our expectations.”
Naomi Matsuoka, Sony Corporation
left a comment Matsuoka: “for someone [music] Streaming… Overall Growth [for calendar Q2] Consistent with previous trends, growth may appear to be slowing. Here are some factors behind this: [calendar Q2]1 year ago… Prices of various DSPs [were raised]So the impact is now diminished. And [in terms of] Advertising streaming service revenues are declining slightly.
“But as I said before, [recorded music streaming revenues grew] 5% In dollar terms. But in constant terms. [currency] In terms of terms, it is higher. 6% Our calculations show there is a range, so overall streaming growth is consistent with our forecast.”
(A quick note: To arrive at a ‘constant currency’ figure that generally better reflects a global music company, Sony converts reported financial information into yen and then converts it to U.S. dollars at the current quarterly exchange rate. This was done for the second quarter and resulted in 5.0% increase over previous year Sony Corporation has confirmed quarterly music streaming growth figures. However, MatsuokaTo get more accurate constant currency figures, 6% 1. The company also appears to have used a more complex formula that takes into account exchange rates in various regions around the world.)
“In the medium term [global music rights] The market is expected to continue growing at a mid- to high-single-digit CAGR, driven by increasing ARPU and additional growth in emerging markets.”
Sadahiko Hayakawa, Sony Corporation
Prior to the phone call, Sony Corporation’s Chief Financial Officer and IR Officer said: Sadahiko HayakawaSony currently explains that the music copyright market is “expected to continue growing at a mid- to high-single-digit compound annual growth rate.” [streaming] “ARPU and further growth in emerging markets”.
there ~was Actually Double digit growth figures But today Sony’s quarterly streaming results came out with a report on its music publishing division.
Sony’s Global Music Publishing Streaming revenue increased across the unit. 19.6% compared to the same period last year 2nd quarter (in USD)
When combined, Sony’s recorded music and Music Publishing Streaming Revenue Reach together $1.63 billion Up from calendar Q2 7.95% compared to the same period last year.Music Business Worldwide
