K-Pop, Country, Latin: Sony’s Global Roster Drives Double-Digit Revenue Growth

Sony’s music business reported more than 10% quarterly revenue growth on Thursday (Nov. 5), as its roster of top-selling global artists, including ATEEZ, Michael Jackson, Ella Langley and Bad Bunny, underpinned growth in streaming, merch and concert earnings.

Sony’s music segment, which includes Sony Music Entertainment, Sony Music Entertainment (Japan), and Sony Music Publishing, reported overall revenue of 598 billion yen ($3.75 billion). Operating income rose 6.4% to 123 billion yen ($772.1 million), as streaming revenue showed solid growth of 7% in the recorded music business and 6% in the publishing business on a U.S. dollar basis.

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The recorded music business reaped the greatest gains, with top-line revenue rising 20% from growth in streaming and physical sales. That broad-based strength provided support for Sony’s management to raise its full-year forecast for sales by 5% to 2.3 trillion yen ($14.438 billion) and by 6% in operating income to 445 billion yen ($2.793 billion).

One top-selling group in the quarter, ATEEZ, earned their third No. 1 album ranking on the Billboard 200 the week of July 11 with their EP GOLDEN HOUR: Part. 5, which opened with a career-high 228,000 equivalent album units. The group headlined London’s BST Hyde Park in the U.K. in June, and, in August, they released their second film, a collection of darkly mysterious, cinematic music videos called ATEEZ: LIGHT THE WAY IN CINEMAS.

Sony said Michael Jackson’s catalog saw a nearly 300% increase in physical and digital music following the release of the biographical film Michael in April. Ella Langley has surpassed 1.8 billion cumulative streams globally, as “Choosin’ Texas” landed a record-extending 26th week at No. 1 on the Billboard Hot 100 on Nov. 2.

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Music publishing reported a 12.2% increase in revenue to 119 billion yen. Physical revenue grew by 16.5% to 32 billion yen. 

Adjusted operating income before depreciation and amortization (OIBDA) rose more than 10% to 155 billion yen on increased revenue.