Sony Music had an impressive first quarter of 2020, with its recorded music revenues growing by 13.5% year-on-year to $1.07bn, fuelled by a 27.4% rise in streaming revenues to $641.7m according to MBW. However, Sony Music’s parent company warned of some specific impacts on its business for 2020 as a whole from the Covid-19 pandemic.
“The release of new music is being delayed primarily because some artists are unable to record songs and music videos,” chief financial officer Hiroki Totoki told analysts in Sony’s earnings call. There was also a warning about the impact “in countries like Japan and Germany where the proportion of music that is streamed is relatively low, sales of CDs and other packaged media sales are decreasing due to restrictions on going outside”.
Totoki also noted that “due to a global reduction in advertising spending, revenue from advertising-supported streaming services is decreasing and revenue from the licensing of music in TV commercials is decreasing. A delay in production of motion pictures and TV shows is also causing a decline in music licensing revenue.”
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