Sony Music achieved record-breaking quarterly earnings, reporting a remarkable 21% increase in overall sales, driven by a surge in streaming income and the exceptional success of the anime series Demon Slayer: Kimetsu no Yaiba. The Tokyo-based parent company, Sony Corporation, raised its annual earnings forecast following these positive results.
For the quarter ending September 30, 2023, Sony Music’s total sales reached 542.4 billion Japanese yen (approximately $3.65 billion), while operating income rose by 28% to 115.4 billion yen (around $776 million). The company attributed this growth to a combination of rising streaming revenues and successful artists in its roster.
Boosting Annual Forecasts
Following the impressive quarterly performance, Sony executives increased their full-year sales forecast for the music division by 6% to 1.98 trillion yen (about $13.3 billion) and raised the operating income forecast by 7% to 385 billion yen (approximately $2.6 billion). They noted that they do not anticipate any significant impact from potential U.S. tariffs.
The overall fiscal forecast for Sony in 2025 was also adjusted upward by 3% to 12 trillion yen (around $80.7 billion). The success of Demon Slayer, which has amassed over 77 million viewers and generated box office revenue exceeding 94.8 billion yen (approximately $637 million) as of October 13, 2023, exemplifies how Sony leverages its intellectual properties across various entertainment sectors.
Streaming Revenue Growth
The music segment’s streaming revenues saw a notable increase, with recorded music revenues rising by 12% in dollar terms and music publishing revenues growing by 25%. The New York-based Sony Music Group reported double-digit growth in both sales and operating income, driven by the popularity of artists such as Bruce Springsteen, SZA, Tyler, the Creator, Bad Bunny, and Tate McRae.
Specifically, revenues from recorded music increased by 10.5% to 321 billion yen (about $2.16 billion), supported by a 7% rise in physical sales. Music publishing revenues also rose by 16% to 106 billion yen (approximately $721.7 million).
The Visual Media & Platform (VM&P) segment, which played a crucial role in promoting Demon Slayer, experienced a staggering 70% increase in revenue, reaching 106 billion yen (around $712.7 million) compared to the same period last year.
Overall, Sony Music’s performance reflects a successful integration of its various entertainment branches, with the synergy between music and visual media demonstrating a robust growth strategy. As the company continues to capitalize on its diverse assets, further advancements in streaming and media collaborations are expected to enhance its market position even more.
