Sony Music Entertainment
Sony Music reported record high operating profit and a 14% jump in revenue for its fiscal year, as revenue from subscription streaming and its live, merchandise and sync business bolstered earnings, parent company Sony Group Corp. reported Wednesday (May. 14). Sony’s music segment, which includes Sony Music Entertainment, Sony Music Entertainment Japan and Sony Music Publishing, […]
It’s time to drop the needle on another Executive Turntable, Billboard’s weekly compendium of promotions, hirings, exits and firings — and all things in between — across the music business. There’s been a fair share of news this week, so let’s get cracking.
Sony Music Entertainment named Kevin Foo as managing director for Southeast Asia, overseeing operations in the Philippines, Indonesia and Thailand, effective immediately. Based in Singapore, Foo will lead efforts to expand SME’s presence in these rapidly growing music markets, focusing on artist development and audience engagement. He will report to Shridhar Subramaniam, president of Asia and Middle East, and manage a squad including general managers and a vp of international marketing for Southeast Asia. Foo brings a strong track record, having previously served as MD of RCA Records Greater China and GM of SME Taiwan. During the Covid-19 pandemic, he led a cross-border collaboration supporting Taiwanese artist Eric Chou’s charity initiative. Prior to joining the Sony family in 2022, Foo co-founded Umami Records, ran Beep Studios, managed artists through Foundation Music, and did some consulting for UMG. His appointment signals SME’s commitment to growth of local genres like P-pop and T-pop. “Kevin has a unique ability to connect artists, markets, and audiences in ways that drive both commercial and cultural impact,” said Subramaniam. “His deep understanding of the region, coupled with his passion for artist development, makes him an ideal leader to shape the next phase of our Southeast Asia strategy.”
Island Records elevated Matt Palazzolo from vp to senior vp and head of analytics at the UMG imprint. Based in New York, he’ll report directly to co-chairmen and CEOs Imran Majid and Justin Eshak. In his new role, Palazzolo will continue to enhance the label’s data capabilities and provide action-oriented insights to the organization, management partners and artists. Since joining Island in 2022 after a lengthy stint at Sony Music Publishing, Palazzolo and his team have excelled in using insights to support artist development. Eshak praised Palazzolo as “key to our culture of learning” at the label, adding, “he also has a real understanding of music and culture that’s indispensable to the delicate process of combining art and analytics.” Majid emphasized Palazzolo’s skill in integrating analytics into the label’s “DNA… He has an incredible ability to attune to what each department is doing and add value by way of his intensive and comprehensive research.”
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Big Machine Label Group hired Chris Koon as executive vice president of finance. Koon will report directly to BMLG president Andrew Kautz and HYBE America CFO Eric Holden. Koon has over three decades of financial experience across recorded music, distribution and publishing operations, holding financial leadership positions at Universal Music Group/Capitol CMG, managing business acquisitions and integrations. –Jessica Nicholson
Marc Eckō
Complex founder Marc Eckō is returning as chief creative and innovation officer, overseeing creative strategy and integrating technologies like artificial intelligence to boost audience engagement. Eckō founded Complex magazine in 2002, transforming how youth culture and streetwear are covered in media. Before Complex, he pioneered Eckō UNLTD., blending music and design. Complex, acquired by NTWRK in 2024 with strategic investment from UMG, Jimmy Iovine, Goldman Sachs and Main Street advisors, has expanded into e-commerce, revived its print magazine, and globally expanded ComplexCon. Additionally, Ray Elias joined as chief marketing officer, leading brand, growth and communications. Elias, with over 25 years of experience, has held pivotal roles at high-growth startups and market-leading brands, including CMO at HotelTonight and StubHub, driving significant business growth and industry disruption.
Smith Entertainment Law Group (SELG), known for its expertise in production counsel for awards shows, series, films, documentaries, and live events, named Lynn Elliot, Esq. as senior counsel. Based in NYC, Elliot brings extensive experience in film, television, music, live events, and new media, having worked on projects like Precious, Alive Inside, and The Rachel Zoe Project. Her clients include producers, writers, directors, musicians, and event promoters. Previously, she served as Associate General Counsel at Dayglo Presents, handling legal matters for ventures like Brooklyn Bowl and Relix Magazine. At SELG, Elliot will lead deal structuring, risk assessment, employment transactions, and business operations support. With a background in film, TV writing, and clinical psychology, she offers a unique blend of creative and legal insight. Kerry Smith, founder and managing partner of SELG, praised Elliot’s breadth of experience and noted “her passion for supporting creative visionaries will further elevate the comprehensive services we offer to our clients.”
Warner Music Nashville promoted Katherine Firsching to director of commercial partnerships and Blair Poirier to manager of commercial partnerships. Both will report to Kristen Williams, svp of radio and commercial partnerships. Firsching, who joined WMG in 2020 as an interactive marketing coordinator, later became manager of video strategy. Poirier joined WMG in 2022 as commercial partnerships coordinator after working at Pierce Public Relations. Williams praised Firsching’s ability to build relationships with partners and artists, highlighting her “driving spirit to learn and win,” while commending Poirier’s skills in DSP account management and her ability to manage workloads “while also building fantastic relationships with our premiere DSP accounts.” They can be reached at katherine.firsching@wmg.com and/or blair.poirier@wmg.com.
Berklee appointed Edward J. Lewis III as senior vp of institutional advancement, effective May 15, a role in which he’ll work with Berklee’s top leadership to drive global fundraising and engagement initiatives. Lewis brings over 20 years of experience in higher education and the performing arts, with expertise in fundraising and strategic planning. Previously, Lewis was president and CEO of the Caramoor Center for music and the arts, where he launched its first major gifts program and advanced diversity and inclusion efforts. As vice chancellor for advancement at the University of North Carolina School of the Arts, he led a $75 million fundraising campaign and doubled the school’s endowment. A professional violist, Lewis also held development roles at the University of Maryland. “[Lewis’] extensive leadership and fundraising expertise, coupled with his community-focused approach, will help us realize our ambitious institutional advancement priorities across our campuses,” said president Jim Lucchese.
5B Artist Management announced internal promotions and the launch of its new creative and marketing agency, Pink Motel. Brad Fuhrman has been promoted to senior vp, managing artists like Lamb of God, BABYMETAL and Stone Sour. Lindsey Medina joins as senior manager of business development, bringing experience from Danny Wimmer Presents and Live Nation. In the UK, Adam Foster has been promoted to general manager, working with acts such as Behemoth and Slaughter to Prevail. Pink Motel, led by Stephen Reeder and Audrey Flynn, will focus on music marketing, brand campaigns and digital strategy. The agency already partners with top clients including Sony, BMG and Live Nation, while Reeder and Flynn continue their roles at 5B.
Jay Ahmed has been promoted to head of promotions at London-based promo agency Your Army, where he’ll lead the DJ, UK Radio, international radio and third party playlist departments. Having joined the company seven years ago as a national radio plugger, Ahmed has played a key role in successful campaigns for artists like BICEP, Barry Can’t Swim, Sub Focus, A Little Sound, salute, LF SYSTEM and KILIMANJARO. In his new position, he will oversee all promotional operations, develop global strategies and strengthen ties with media, artist management and label partners. Ahmed expressed gratitude for the opportunity and praised the Your Army team and artist roster, stating his excitement for what lies ahead in his expanded role.
ICYMI:
Armin Zerza
EMPIRE Publishing appointed producer !llmind as senior vp of A&R. Additionally, Al “Butter” McLean was elevated to executive vp of global creative, continuing to co-lead EP with Vinny Kumar … Opry Entertainment Group named Tim Jorgensen as vp of operations for its Austin team, overseeing ACL Live, 3TEN and W Austin … Warner Music Group hired Armin Zerza as evp and chief financial officer, effective May 5, bringing extensive leadership experience from his previous role as CFO of Activision Blizzard. [Keep Reading]
Last Week’s Turntable: Orchard Veteran Breaks Out on His Own
Fernando Cabral de Mello has been named CEO of Sony Music Entertainment Brazil, Sony Music Latin Iberia announced on Thursday (March 27). His appointment comes as part of a new organizational structure for Sony’s operations in the country. The “newly unified entity” will encompass Sony Music Brazil, Som Livre and also oversee the joint venture […]
A U.S. federal court judge has ruled that Ultra Music Publishing must change its name within six months after a jury found that the company breached the “Ultra” trademark owned by the Sony Music-owned Ultra Records.
Ultra Music Publishing is owned by Patrick Moxey, who also founded Ultra Records in 1995 and sold his remaining 50% share of the label to Sony Music in 2021. Sony brought the lawsuit against Ultra Music Publishing the following year, attesting that Moxey (who founded the publishing company in 2004) had signed away his rights to the trademark after selling his stake in the Ultra label.
At the December trial, lawyers for Sony/Ultra Records argued that the label had impliedly licensed the Ultra trademark to the publishing company but that, after terminating that license in March 2022, the publishing company had continued to use the trademark in bad faith. The jury in the case agreed, also finding that the Ultra mark was distinctive, that Ultra Music Publishing was in breach of the license and that its use of the Ultra name was “likely to dilute [Ultra] Records’ Ultra trademark.”
However, the jury also found that Ultra Music Publishing’s use of the trademark wasn’t “likely to cause confusion among [Ultra Music] Publishing’s customers, and that [Ultra] Records suffered nodamage from Publishing’s breach of the license.” As a result, the jury awarded no damages or legal costs to Sony/Ultra Records.
“Independent music companies are always facing challenges from major corporations, who are threatened more than ever by their increasing success,” said Moxey in a statement sent to Billboard following Tuesday’s ruling. “With 13 songwriters nominated across seven categories at this year’s Grammys, and their participation in winning Album of the Year, R&B Album of the Year, and Rap Album of the Year, we are proud of the many successes of the songwriters we represent. Our roster of talented writers and producers, alongside our executive team will keep doing what they do best — delivering the exceptional work that has made us who we are. Nothing changes except the name.”
Sony Music declined to comment on the ruling.
Though the trademark case is now resolved, the legal battle between Sony Music and the publisher isn’t over. Last November, Moxey’s Ultra International Music Publishing and Ultra Music Publishing Europe sued Sony Music Entertainment and its subsidiaries — including Ultra Records — over allegations of copyright infringement, claiming Sony and its affiliates had been using Ultra Publishing’s compositions without a license. Last week, Sony Music Entertainment asked a judge to throw out that lawsuit, calling the complaint an act of “retaliation” against the major label for filing its trademark suit against the publishing outfit two years prior. That case is ongoing.
Sony Music reported 14% revenue growth in the quarter ending last year — or total revenue of 482 billion yen ($2.72 billion) — bolstered by big releases from ATEEZ and Tyler, the Creator and subscription streaming growth across recorded and music publishing divisions, its parent company Sony Group Corp., reported Thursday (Feb. 13). Sony Music’s […]
Sony Music Entertainment acquired Czech Republic-based record label Supraphon, furthering its expansion in Central Europe. The Supraphon roster includes recordings from artists such as Karel Gott, Lucie Bílá, Marek Ztracený, Škwor, Olympic, Hana Zagorová and Václav Neckář. A press release states that the Czech music market notched recorded music revenue of $84.1 million in 2023, with streaming boasting 60.1% of the total market with a volume of $50.5 million — an 18% increase from the prior year. The release adds that seven out of the top 10 songs and albums in the country in 2023 were put out by Czech artists. Libor Holeček will continue leading Supraphon as MD, Martin Kudla will remain as executive director and Iva Milerová, who was previously chairwoman of board of directors, will continue on in an advisory role.
Warner Music Italy and Warner Chappell Music Italy signed a deal to acquire the catalog of DWA Records, a leading Italo Disco label co-founded in 1989 by singer-songwriters and producers Roberto Zanetti and Francesco Bontempi. The agreement also encompasses the catalog of Extravaganza, DWA’s music publishing business. DWA’s catalog includes more than 250 masters including “The Rhythm of the Night” performed by Corona and written by Bontempi; “Happy” and “Uh La La” by Alexia; and “Baila” performed by Zucchero and written by Zanetti.
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MENA streaming service Anghami announced a new round of funding from OSN Group of up to $55 million, with a $12 million initial investment in a convertible note program. OSN and Anghami struck an initial partnership in April 2024, merging OSN+’s video streaming capabilities and 18,000 hours of content with Anghami’s portfolio of 100 million songs and podcasts. The companies claim video streaming subscribers grew 41% between April and October 2024. The new funds will allow the platforms to expand their content library, enhance the user experience using new technologies and strengthen their presence in the MENA region. It will additionally be used to implement innovations including AI-driven personalization.
Symphonic Distribution signed a global distribution deal with Taiwanese indie label Kafka By the Sea, whose roster includes Taiwanese rock band KST and indie-pop band Bubble Tea and Cigarettes. The first release under the pact was Sherry Z’s debut album Time.
Decentralized music community and discovery platform Audius struck a multi-territory licensing agreement with International Copyright Enterprise (ICE). The new deal establishes a pathway for more than 330,000 rights holders to receive royalties when their music is used on Audius in sub-Saharan Africa and Asia Pacific, among other territories.
U.K.-based live entertainment company ATG Entertainment acquired SOM Produce, a theater producer, operator and distributor based in Spain. Financial terms were not disclosed for the deal. SOM Produce, headquartered in Madrid, is a leading global producer and distributor of musicals and plays in the Spanish language. It manages five theaters in the center of Madrid — including Nuevo Teatro Alcalá, Teatro Rialto, Teatro Nuevo Apolo, Teatro Calderón and Teatro Amaya — and has produced more than 20 shows, including Mamma Mia!, The Book of Mormon, West Side Story, Grease, Chicago and Cabaret. ATG is majority owned by Providence Equity Partners.
Classical music label Pentatone signed a licensing partnership with Dutch promotion and distribution platform Collabhouse, which launched a pre-cleared artist music library in November. Through the deal, Pentatone will provide its entire public domain catalog to a broader community of creators, allowing composers, filmmakers, advertisers and more to work with musical works by composers including Beethoven, Bach, Tchaikovsky, Mozart, Vivaldi and more, “all interpreted by the most renowned artists,” according to a press release.
The Peoria Civic Center Authority and Prairie Home Alliance secured a naming-rights agreement for the 2,200-capacity theater within Peoria Civic Center for seven years. The venue will now be known as the Prairie Home Alliance Theater. Prairie Home Alliance is a locally owned and operated group of 10 home improvement companies across central Illinois. This is the first naming rights deal for the theater in its 42-year history.
Danish microphone producer DPA Microphones acquired the majority share of Vienna-based audio products company Austrian Audio. According to a press release, DPA is a leading manufacturer within several miniature microphone categories while Austrian Audio is strong in the large diaphragm microphone market. “Together, the brands provide a broader product range for discerning sound engineers in industries like broadcast, musical, theatre, live events and recording studios,” states a press release announcing the deal. “By joining forces, the brands will design and develop sophisticated, professional audio solutions that meet the evolving demands within the acoustical and digital fields, all while prioritizing the user experience.”
Sony Music revenue grew 10% year-on-year to 448.2 billion yen ($2.9 billion) last quarter, as hit records by SZA, David Gilmour and Travis Scott, coupled with higher sales from live shows and merchandise, helped boost growth in both recorded music and music publishing.
For its fiscal second quarter ended Sept. 30, Sony Music — comprising Sony Music Entertainment, Sony Music Entertainment Japan and Sony Music Publishing — reported quarterly operating income of 90 billion yen ($589 million), a 12% rise on the same period a year ago.
Adjusted operating income before depreciation and amortization (OIBDA) climbed 15% year-on-year, totaling just under 112 billion yen ($733 million), Sony Music’s parent company, Sony Group Corp., reported Friday (Nov. 8).
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The company said growth in revenue from streaming subscriptions, live events and merchandise from recorded music, as well as the impact of foreign exchange rates were among the key drivers of its positive quarterly financial results. They bring Sony Music’s half-year earnings up to 890.2 billion yen ($5.8 billion), up 16% year-on-year, with a half-year operating income of 176 billion yen ($1.1 billion).
Breaking down Sony Music’s quarterly earnings, recorded music revenue increased 14% year-on-year to 290 billion yen ($1.9 billion), with subscription and ad-supported streaming up 9% to 189 billion yen ($1.2 billion), accounting for around 65% of the firm’s recorded music earnings.
Physical revenue jumped 22% year-on-year to 25 billion yen ($164 million), while Sony’s “other” category — which includes revenue from merchandise, live performances and licensing revenue from synch, public performance and broadcast — was up 33% to 68 billion yen ($446 million).
SZA’s blockbuster album SOS, which has broken numerous chart records since it was first released in December 2022, including overtaking Aretha Franklin’s Aretha Now as the longest-running chart topper of the Top R&B/Hip-Hop Albums tally, was Sony Music’s top seller of the quarter.
In second place was Gilmour’s first studio album in nine years, Luck and Strange, which debuted at No. 10 on the Billboard 200 earlier this year. Other top sellers for Sony Music in the three month period included Scott’s UTOPIA, Future & Metro Boomin’s WE DON’T TRUST YOU, Beyoncé’s COWBOY CARTER, Harry Styles’ Harry’s House and Luke Combs’ This One’s for You. The one title in the top 10 from outside this decade was Michael Jackson’s Thriller, the 1982 classic co-produced by Quincy Jones, who passed away on Sunday (Nov. 3).
On the music publishing side, Sony Music reported revenue of 92 billion yen ($604 million), up 11% year-on-year. The company said the strong performance of its publishing arm was led by strong gains in streaming income, which rose 9% to just under 53 billion yen ($347 million). Publishing’s “other” category grew by around 13% year-on-year to 38.6 billion yen ($253 million). The company disclosed that as of March 31, its publishing division either owned or administered approximately 6.24 million songs.
Visual media and platform sales, which includes revenue from animation titles, game applications and service offerings for music and visual products, fell slightly to 62 billion yen ($407 million), down 1% on the same period last year.
Sony Music said its forecast for full-year revenue was unchanged from the previous quarter with projected sales of 1.74 trillion yen (approximately $11.4 billion) and projected operating income of 330 billion yen ($2.2 billion).
Sony Music’s fiscal second quarter highlights:
▪Revenue of 448 billion yen ($2.9 billion), up 10% year-on-year▪Adjusted operating income of 112 billion yen ($733 million), up 15%▪Recorded music revenue increased 14% year-on-year to 290 billion yen ($1.9 billion)▪Music publishing revenue of 92 billion yen ($604 million), up 11%▪Visual media and platform revenue of 62 billion yen ($407 million), down 1%
The music business is getting back to basics.
In a few short years, the major labels have gone from investing in and partnering with speculative tech startups to pouring money into regionally focused music companies across Asia, Africa and Latin America. After a brief flirtation with NFTs and live-streaming businesses, anything resembling a faddish technology seems to be out of favor, judging from the deals and partnerships they’ve been making lately. Instead, the majors are targeting old-school music companies that own catalogs and develop artists — and can benefit from the majors’ global network of distribution and other services.
In 2024 alone, the three majors — Universal Music Group, Sony Music Entertainment and Warner Music Group — have acquired or invested in 11 record labels, music catalogs and service providers in small or developing markets. The flurry of deals — there were even more in 2023 and preceding years — provides the majors with more content for their ever-increasing distribution pipeline and more international artists to take to Western markets.
Take UMG’s run of acquisitions and investments in 2024: the remaining stake of European indie label group [PIAS], the remaining stake in the catalog of Thai music company RS Group, a majority stake in Nigerian record label Mavin Global and the outright acquisition of Outdustry, a multi-faceted company with an artist- and label-services arm that focuses on China, India and other high-growth emerging markets. Outdustry will be a division of Virgin Music Group, UMG’s fast-growing distribution and artist services company that includes distributor Ingrooves Music Group and Integral, formerly the artist services division of [PIAS].
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UMG, in particular, is letting the world know about its intentions. On Thursday (Oct. 31), UMG CEO Lucian Grainge dedicated much of his earnings call opening statements to the company’s efforts to expand into potentially lucrative markets that merited little attention before legal streaming services replaced digital piracy. UMG plans to make “several other investments” before the end of the year, CFO Boyd Muir said during the earnings call. In total, he said, investment spending in the second half of the year will be 350 million to 400 million euros ($380 million to $434 million).
The focus on emerging markets and artist services is a noticeable change from a few years ago. When NFT prices soared and fans were stuck at home during the pandemic, the majors invested in blockchain, virtual reality and live-streaming startups. Today, as the majors face slowing streaming growth in mature markets and the needs of an increasing number of independent artists, they’re focused on building a global network of service providers with an eye on up-and-coming markets.
The focus on emerging markets goes beyond acquisitions. In September, UMG launched a new company, Universal Music Group Greater Bay Area, that will be based in Shenzhen, making “the first time a major music company has established a division in China’s Greater Bay Area, the world’s most populous urban area,” the company said.
Another development mentioned on UMG’s earnings call was GTS, a global talent services business in Latin America. In October, GTS became a standalone company separate from UMG’s record labels. “By separating from our local labels,” Grainge explained, “GTS will now be able to also offer its services to artists outside of the UMG family.”
Grainge and Muir painted a picture of a global business determined to expand outside of the mature markets they know best and build a presence in high-growth ones. UMG’s competitors — including independent Believe — are doing the same.
WMG has also had a busy year investing in traditional music companies. In March, WMG purchased a stake in India’s Global Music Junction (India’s The Economic Times reported it was a 26% stake) and launched Warner Music South Asia in April. Last year, the company took a majority stake in Divo, an Indian digital media and music company. Earlier this week, CEO Robert Kyncl told The Economic Times that China and India are the company’s top markets for expansion. “We’re already doing great in India, but it can be a much bigger part of our story,” Kyncl told the paper.
The majors continue to buy catalogs, of course. This year, Sony Music purchased Pink Floyd’s recorded music catalog (in addition to merchandising and name and likeness rights) and UMG bought a minority stake in Chord Music Partners, which holds the rights to over 60,000 songs. Expensive song catalogs give the majors rights to assets with long, productive lives. But given the enormous size of these companies, artist catalog acquisitions barely move the revenue needle. A legendary artist’s catalog might cost $200 million but generate a steady $10 million a year — a healthy sum but a pittance to a company with annual sales exceeding $12 billion.
Rather than pour money into just catalogs, the majors are buying entire companies and building new businesses with growth potential. As Morgan Stanley analysts wrote in an investor note about UMG on Thursday (Oct. 31), earlier acquisitions have had “a negligible effect on revenue and a small impact on profit growth.” But in the future, they are likely to be a more important driver of revenue growth, and Morgan Stanley expects UMG’s financial reports will break out their impact (e.g. reported revenue vs. organic revenue).
In buying regional music companies and building artist-services business, the majors are also taking a defensive measure. Independents such as Believe have been investing in local markets for years. In 2024 alone, Believe purchased the remaining stake in Turkish record label DMC and acquired Indian label White Hill Music’s music catalog and YouTube channel. Independent distributors such as UnitedMasters, Stem, Symphonic Distribution and Create Music Group have given artists a viable alternative to major label-owned systems. The majors are simply changing along with the market.
In 2012, UMG acquired the recorded music assets of EMI Music and later sold some pieces to WMG to satisfy antitrust regulators. Opposition to greater consolidation in the U.S. and Europe means it was probably the last acquisition of its size in those regions. (WMG’s brief flirtation with buying Believe in April and May quickly drew opposition from French indie labels.) There’s less opposition to more gradual growth taking place elsewhere in the world, though. The majors are continuing to expand, but they’re taking many small steps, not single EMI-sized leaps — and they’re doing it through old-fashioned music businesses.
Now that Pink Floyd has finally managed to sell its recorded music assets, merchandising and name, image and likeness, the songwriting members of the group have another big payday still outstanding — its music publishing assets.
Sony has bought some of Pink Floyd’s music assets for about $400 million, sources confirm of the news that first appeared in the Financial Times. But sources also confirm that the band’s music publishing assets were not a part of the deal.
Nevertheless, the Pink Floyd sale was a long time coming, as the group started shopping its recorded music assets about two years ago. For a while, the assets were pulled off the block due to some infighting between group members, according to published reports.
As sources said at the time, the assets were shopped to all the big players — the other majors, BMG, Concord, Primary Wave and other private equity-backed music buyers — but Sony always had the inside hand on the deal given that it serves as the group’s distributor. This deal marks the third big music asset deal Sony has made in the last 12 months, having previously bought 50% of Michael Jackson’s music assets in a deal that valued them at $1.205 million; and Queen’s music assets for about $1.2 billion.
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Combined, that means Sony — and any financial partners that were, or may have been, involved in the deals — has spent about $2.2 billion buying music assets in the last 12 months. In July, Apollo Global Management announced that it was the lead in pulling together $700 million in commitments to provide a “capital solution” to Sony Music Group. Back in 2021, Sony partnered with another financial partner, Eldridge Industries, when buying Bruce Springsteen’s master recordings.
Sony declined to comment. Apollo and Eldridge didn’t respond to e-mails seeking comment.
Pink Floyd’s filings in Companies House — the U.K. equivalent of the SEC database — show that for the year ended June 30, 2023, the band’s revenue totaled, as first reported by Music Business Worldwide, 40.4 million pounds (which at the 2023 average of 1.244 per pound totals $50.3 million, according to exchange-rates.org). This total combines revenue from master recording, merchandising and possibly other licensing opportunities; and also combines the two Pink Floyd corporations that appear to have been set up to oversee those assets: the original band after Syd Barrett’s departure and the group that carried on after Roger Waters’ departure.
Just looking at Pink Floyd’s recorded masters catalog over the last three years in the U.S., the band has generated an annual average of 1.135 million album consumption units from the sale of 497,000 LP, CD and digital download albums and 160,000 track downloads and almost 675 million on-demand streams. While Luminate doesn’t track global album sales, Pink Floyd’s on-demand global streams averaged 2.37 billion over the last three years. Consequently, if the group owns all of its publishing, Billboard estimates that the band’s recorded masters bring in about $11 million in publishing royalties annually. If the band sells and can achieve a 20-times multiple — the going rate for superstar songwriters — it could bring in another $200 million-plus for the band’s songwriters. In general, music publishing asset trade at a higher multiple than recorded music assets, although the latter is catching up on that front.
An e-mail to the manager of one of the band members didn’t receive a reply by press time.
Sony’s acquisition of Pink Floyd’s name, image and likeness is good for merchandising. But if any opportunities arise for film, TV or a theatrical production — and there likely will be considering that since 1991 the band’s fanbase has consumed nearly 51 million album consumption units in the U.S. alone — Sony would need, as its executives well know, licenses from the Pink Floyd publishers and/or administrators, which in the U.S., according to SongView and depending on the song, consist of TRO Essex Music Group, BMG and Concord.
Boosted by double-digit growth in recorded streaming and helped by major releases from Beyoncé and Future & Metro Boomin, Sony Music said on Tuesday that total revenue grew 23% to 442 billion yen ($2.7 billion) during its fiscal first quarter, which ended June 30.
Sony’s operating income improved 17% to 86 billion yen ($534 million) and adjusted operating income before depreciation and amortization (OIBDA) jumped 30% to 108 billion yen ($671 million). Adjusted OIBDA margin improved to 24.4%.
Both of Sony’s music divisions — recorded music and publishing — posted similarly solid year-over-year gains during the period, resulting in the ninth consecutive year of growth on the recording side and 11th straight year of gains for publishing.
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Recorded music revenue increased 26% to 299 billion yen ($1.8 billion), with subscription and ad-supported streaming up 19% to 197 billion yen ($1.2 billion) and accounting for roughly 66% of that recorded segment tally. Physical revenue sunk 5.6% to 24 billion yen ($150 million), year over year, while Sony’s “other” category — lumping merchandise, live performances and licensing revenue from synch, public performance and broadcast — jumped 81% to 73 billion yen ($453 million).
Sony said some of its top sellers for the fiscal quarter were Beyoncé’s COWBOY CARTER, Future and Metro’s WE DON’T TRUST YOU, Travis Scott’s UTOPIA and SZA’s SOS. Some non-all-capped wins included Luke Combs’ Gettin’ Old, 21 Savage’s american dream and Doja Cat’s Scarlet.
Music publishing revenue rose 28.7% to 97 billion yen ($602 million). Streaming revenue climbed 36% to 56.5 billion yen ($351 million), while publishing’s “other” category grew 19.7% to 40.1 billion yen ($249 million) when compared to the year-ago period. The company disclosed that as of March 31, its publishing division either owned or administered approximately 6.24 million songs, an increase of 14% in the last two years.
Sony Music’s visual media and platform revenue declined 7.1% to 39.7 billion yen ($246 million). The segment includes mobile gaming, software for PCs and game consoles, and software development contracts.
Looking ahead, Sony Music Entertainment raised its forecast for full-year revenue by 3% to 1.7 trillion yen (approximately $11.5 billion) with a projected operating income increase of 5% from the previous forecast in May to 20 billion yen.