UPDATED: Global entertainment and electronics giant Sony reported a record $3.78B net profit in Q3. Sony’s film division grew and gaming struggled. The real star driving profits was music, but here were warning signs that Sony Music Entertainment is struggling, even as the overall music sector is soaring.
Operating profits at Sony Music were up $1.35 billion from $361 million, thanks to a one time gain from the consolidation of EMI music publishing. Overall, however, revenues in the music division dipped 9% to $1.92 billion.
That last downward stat is in contrast to the rest of the recorded music sector. Vivendi’s Universal Music Group is booking growing revenue, and the sector overall is surging thanks to streaming growth.
At Sony, streaming revenue grew 13% in the quarter, while physical sales fell off the cliff, dropping 38%.
Sony Music needs new hits. Travis Scotts “Astroworld,” released on August 3, 2018, has been Sony’s top seller for the last two quarters
The Top 5 records this last quarter were Scott, Bob Dylan (“More Blood, More Tracks: The Bootleg Series vol. 14”), George Ezra (“Staying at Tamara’s”), Little Mix (“LM5”), and Pentatonix (“Christmas is Here!”).