sony music
Page: 2
Sony Music has reached a settlement to end a lawsuit claiming the producers of Whitney Houston’s 2022 biopic Whitney Houston: I Wanna Dance With Somebody never fully paid to use her songs.
The case, filed earlier this year, alleged that the companies behind the movie had signed deals for sync licenses to feature songs like “I Will Always Love You” in the film – but that more than a year after it was released, the label still hadn’t been paid a dime for those rights.
In a motion filed Monday in New York federal court, attorneys for Sony say they will drop the case voluntarily. The motion did not provide any terms of the apparent settlement, and neither side immediately returned requests for comment.
Trending on Billboard
Riding a wave of enthusiasm for musical biopics – 2018’s Bohemian Rhapsody earned more $900 million at the box office and Baz Luhrmann’s 2022 “Elvis” made $288 million – “I Wanna Dance” was released in December 2022 to middling reviews and an underwhelming return of $59.8 million gross.
A little over a year later, Sony added a copyright lawsuit to the movie’s woes – claiming the movie had featured “some of the most iconic and popular sound recordings of all time” without properly paying for them.
The February lawsuit claimed that Anthem Films, Black Label Media and others behind the movie had signed a sync license agreement on Dec. 5, 2022 – less than ten days before the movie’s release – covering the use of Sony’s sound recordings of Houston’s songs, also including “Greatest Love of All,” “I’m Every Woman” and the titular “I Wanna Dance with Somebody.”
Sony argued that the producers did so because they essentially had to if they wanted to create “a biopic about the life and music of Whitney Houston.”
“Unlike other types of films, musical biopics by their nature require use of the subject musician’s music, as it is nearly impossible to explain the importance of a musician’s creative genius or unique style and talent without the use of the musician’s music,” Sony wrote.
But the label said that by August 2023, it still had not been paid anything under that deal. After notifying Anthem of the problem, the company allegedly told Sony that it was waiting on funds from a tax credit owed by the state of Massachusetts. But such a payment never came, Sony said.
“As a result of Anthem’s failure to pay the fees to SME, it is clear that there was no license or authorization to use the SME Recordings used in the Film,” the company’s attorneys wrote. “Nevertheless, the Film embodying the SME Recordings was, and continues to be, exhibited, distributed, and exploited.”
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).
Trending on Billboard
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%
A California appeals court has issued a final ruling that Michael Jackson’s estate can proceed with a $600 million sale of the singer’s catalog to Sony Music, rejecting objections from his mother that aimed to block the deal.
A month after the appeals court issued a tentative ruling against Katherine Jackson, the court finalized that decision on Wednesday – ruling that the estate’s executors (John Branca and John McClain) didn’t violate the terms of Michael’s will when they inked the gargantuan deal with Sony.
“The will gave the executors broad powers of sale, with no exception for the specific assets at issue in this case,” the court wrote. “As such, [a lower judge] did not err in concluding that it was Michael’s intent to allow the executors to sell any estate assets, including those at issue in the proposed transaction.”
Trending on Billboard
Beyond the merits of the deal, the court also rejected Katherine’s appeal for a simpler reason: that she had “forfeited” her arguments by failing to make them before a lower probate court.
Katherine’s attorneys did not immediately return a request for comment. She can still appeal the ruling to the California Supreme Court, though her odds of overturning the ruling are low.
As reported by Billboard earlier this year, the Jackson estate and Sony Music have reached a deal that will see the music giant buy half of the singer’s publishing and recorded masters catalog for more than $600 million.
But because the Jackson estate is still pending before a Los Angeles probate court more than 15 years after his 2009 death, his executors took the then-confidential deal to Judge Mitchell Beckloff for approval. When they did so, Katherine filed objections — among them that the sale “violated Michael’s wishes” and that the catalog would likely continue to gain value over time if retained.
In April 2023, Beckloff rejected those objections and ruled that the deal could move forward. Katherine then filed an appeal, resulting in Wednesday’s ruling.
In the new decision, the court rejected a number of key arguments from Katherine, including her claim that the sale would violate basic inheritance rules because it would prevent all of Michael’s assets from being transferred to his heirs. In doing so, the court said Michael’s will vested Branca and McClain with “full power and authority” to make such deals while in control of the estate.
“The proposed transaction is not a gift or distribution of estate assets—it is an asset sale, pursuant to which the estate receives a significant monetary payment and interest in a joint venture,” the court wrote. “While the proposed transaction will result in the estate exchanging assets for cash and other valuable rights, it neither diminishes the estate’s value nor impairs the executors’ future ability to transfer the estate’s assets to the trust.”
The wrangling over the Sony deal has exposed rifts among Jackson’s heirs. In March, Jackson’s son Blanket asked the judge to stop his grandmother from using estate money to fund her efforts to block the Sony deal. Though both had initially opposed the sale, Blanket and Jackson’s other children accepted the probate judge’s decision allowing it to move forward.
Later that same week, the estate responded to claims from Katherine’s attorneys that she needed estate money to pay for her legal battle, arguing she had received more than $55 million since the singer’s death. The estate’s executors argued that “virtually no request of Mrs. Jackson for her care or maintenance has been declined,” including more than $33 million in cash.
A rep for the estate’s executors declined to comment on Wednesday’s ruling.
Christoph Behm has been named the new CEO of Sony Music Germany, Switzerland and Austria (GSA), replacing Patrick Mushatsi-Kareba, who is exiting the company at the end of August.
Berlin-based Behm, who began his career at Sony Music in 2011 and has worked in a number of senior roles for the label over the past decade, including head of streaming and director of digital sales, will report to Daniel Lieberberg, president of Sony Music Continental Europe and Africa.
In a statement announcing Behm’s promotion, Lieberberg said the newly appointed CEO’s “deep understanding of our DSP partners and creativity as a leader will serve him well in his new role.”
Trending on Billboard
“Christoph has played an important role building and expanding our business across this region during the streaming era,” said Lieberberg. “He has worked closely with our artists to bring their music to new fans in innovative ways and has embraced continuous industry change to create opportunity despite rapidly shifting paradigms and business models.”
Sony Music did not provide any details about Mushatsi-Kareba’s departure from the company. The outgoing CEO has headed Sony Music’s operations in the GSA region since 2018 when he joined the label from Universal Music Germany. Prior to that, Mushatsi-Kareba spent eight years at Apple, where he was responsible for overseeing the tech company’s music business in multiple European markets, including Germany, Austria, Italy and Switzerland.
Although Sony Music GSA has enjoyed significant commercial success over the past six years, sources with inside knowledge of their relationship tell Billboard that Mushatsi-Kareba and Lieberberg did not always see eye to eye.
Prior to his promotion to CEO, Behm held the role of senior vp of Sony Music GSA’s commercial division, where he oversaw a large team, including the company’s family entertainment business. In the past two years, Behm’s responsibilities grew to also encompass oversight of catalog, sales and streaming departments in the region.
Top-selling frontline Sony artists in the GSA market include Apache 207, Nina Chuba, Rap Larue and Reezy.
“It fills me with pride to now lead the company that I have served in various roles for so many years,” said Behm, who takes up the CEO post on Sept. 1, in a statement. “We are at another exciting time for our industry, and I look forward with great confidence to this next chapter for Sony Music GSA,” he added.
Germany is the world’s fourth-biggest recorded music market in IFPI’s annual rankings behind the United States, Japan and the United Kingdom.
As the 2024 presidential election heats up ahead of Nov. 5, Sony Music is throwing its hat in the ring with a campaign to increase voter turnout. Called Your Voice, Your Power, Your Vote, the non-partisan initiative is meant to educate artists, songwriters, industry professionals and communities across the country about voter registration. Its website […]
Investment giant Apollo Global Management is backing Sony Music Group to the tune of $700 million to help the company fund music acquisitions, it was announced Friday (July 26). The deal could provide the financial assistance needed for Sony’s planned acquisition of Queen‘s recording and music publishing catalogs. Sources have told Billboard the band is […]
Michael Jackson’s estate has won a tentative court ruling that would allow it to proceed with a $600 million sale of the singer’s catalog to Sony Music, overcoming objections from his mother that aimed to block the deal.
Katherine Jackson had argued that the gargantuan deal violated the terms of Michael’s will, but a California appeals court tentatively ruled Wednesday (July 17) that she had “forfeited” that argument by failing to make it before a lower probate court.
Even if she had properly raised that argument, the appeals court said the estate’s executors had the power to make the deal. The court said Jackson’s will had vested the executors (John Branca and John McClain) with the authority to “sell, invest, or otherwise manage estate property” while they were in charge.
Trending on Billboard
“The court is tentatively inclined to affirm the probate court’s order granting the executors’ request to proceed with the proposed transaction,” the appeals court wrote in its ruling, obtained by Billboard. “We tentatively conclude that Katherine’s challenge fails on the merits because the probate court’s order does not violate the terms of Michael’s will.”
Such “tentative” rulings must be finalized before they are formally entered, but they strongly indicate the way the court is planning to rule. An attorney for Katherine did not return a request for comment on Thursday. A rep for the Jackson estate declined to comment. News of the tentative ruling was first reported by Rolling Stone.
As reported by Billboard earlier this year, the Jackson estate and Sony Music have reached a deal that will see the music giant buy half of the singer’s publishing and recorded masters catalog for more than $600 million.
But because the Jackson estate is still pending before a Los Angeles probate court more than 15 years after his 2009 death, his executors took the then-confidential deal to Judge Mitchell Beckloff for approval. When they did so, Katherine filed objections — among them that the sale “violated Michael’s wishes” and that the catalog would likely continue to gain value over time if retained.
In April 2023, Beckloff rejected those objections and ruled that the deal could move forward. Katherine then filed an appeal, resulting in Wednesday’s tentative decision.
The wrangling over the Sony deal has exposed rifts among Jackson’s heirs. In March, Jackson’s son Blanket asked the judge to stop his grandmother from using estate money to fund her efforts to block the Sony deal. Though both had initially opposed the sale, Blanket and Jackson’s other children accepted the probate judge’s decision allowing it to move forward.
Later that same week, the estate responded to claims from Katherine’s attorneys that she needed estate money to pay for her legal battle, arguing she had received more than $55 million since the singer’s death. The estate’s executors argued that “virtually no request of Mrs. Jackson for her care or maintenance has been declined,” including more than $33 million in cash.
Colombian hitmaker Nanpa Básico has signed a record deal with 5020 Records, the company tells Billboard. The 31-year-old singer-songwriter from Medellín, Colombia (born Francisco David Rosero Serna) has made a name for himself thanks to his socially conscious, raw lyrics and a signature style that blends hip-hop with reggae and regional influences. His latest album, […]
Sony is the undisclosed suitor that Queen was in an exclusive period with in negotiating the sale of its catalog and other music assets, as reported by Bloomberg today. There have been multiple reports that the catalog was up for sale since Music Business Worldwide first broke the news last May.
So far, Queen is believed to have had initial conversations about the potential deal with Disney, which owns the band’s masters for North America, and Universal Music Group. According to sources, the deal is being shopped by the band’s lawyers.
Trending on Billboard
In fact, each band member was said to have their own lawyers for the deal; early this year, some sources suggested that John Deacon’s share of the band’s assets might not be included in any potential agreement. Putting a deal like this together is a very complex process and with all the personalities involved, it’s still a question of whether one will ultimately be struck. In fact, that very issue — band members with different agendas — is said to have derailed a deal for the Pink Floyd assets a while back. That deal was expected to go for $500 million before it collapsed sometime in 2022.
Sources previously told Billboard that Queen was seeking $1.2 billion for its music assets, a price tag that limited the number of prospective suitors. In order to swallow the hefty price tag, Sony is reportedly partnering with an undisclosed financial player. Previously, Sony had help in acquiring the Bruce Springsteen master recording catalog from Eldridge Industries, which at one time owned Billboard.
Queen’s lawyers and Sony Music representatives were not immediately available for comment.
The Queen catalog includes iconic hit songs such as “Bohemian Rhapsody,” “Killer Queen,” “Another One Bites the Dust,” “Radio Ga Ga,” “Somebody to Love,” “Crazy Little Thing Called Love,” “You’re My Best Friend, “We Will Rock You” and “We Are the Champions.” Since 1991, the catalog has generated slightly more than 38 million album consumption units in the United States and has nearly 46 billion in global on-demand streams, according to Luminate. Go here for a full breakdown of the band’s catalog and financial performance.
If Sony completes the deal, it could very well be the biggest music asset deal ever made, even if it does not command the highest valuation for an artist’s music assets. Late last year, Sony bought half of the Michael Jackson estate for about $600 million, according to sources, though Sony never confirmed the acquisition.
Led by SZA’s SOS, Travis Scott’s UTOPIA and growth in paid subscription streaming services, Sony Music revenue grew 16.9% to 1.59 trillion yen ($11.05 billion) in its fiscal year ended March 31, its parent company, Sony Corp., reported Tuesday, May 14.
Explore
See latest videos, charts and news
See latest videos, charts and news
Sony Music’s revenue topped guidance of 1.56-1.57 trillion yen given in Sony Corp’s previous quarterly earnings in February. Its adjusted operating income before depreciation and amortization (AOIBDA) of 368.7 billion yen ($2.55 billion) also topped guidance of 350-360 billion yen.
The yen-denominated revenue figures were boosted by foreign exchange rates. Of Sony Music’s revenue gain, about 32%, or 76.5 billion yen ($529 million), came from foreign exchange. Both recorded music and music publishing divisions enjoyed higher revenue from streaming services and paid subscriptions — Spotify’s price increase in July 2023, and continued subscriber growth at all platforms, also provided a boost to recent earnings by Universal Music Group and Warner Music Group.
Trending on Billboard
Recorded music revenue of 1.07 trillion yen ($7.39 billion) was up 20.4% from the prior year. While physical revenue dropped 7.4% to 101.3 billion yen ($701.7 million), streaming jumped 18.5% to 709.5 billion yen ($4.91 billion) and accounted for 66.5% of recorded music revenue, down from 67.7% in fiscal 2022. The “other” category, which includes merchandise, rose 59.8% to 221.4 billion yen ($1.53 billion).
Other top releases for the fiscal year were Bad Bunny’s Un Verano Sin Ti, Harry Styles’ Harry’s House, Miley Cyrus’s Endless Summer Vacation, Luke Combs’ Gettin’ Old, Peso Pluma’s Genesis, Doja Cat’s Scarlet, Rod Wave’s Nostalgia and Beyoncé’s Renaissance.
Music publishing full-year revenue rose 18.1% to 326.7 billion yen ($2.26 billion). Streaming revenue improved 21.1% to 185 billion yen ($1.28 billion) and accounted for 56.6% of publishing revenue, up from 55.2% in fiscal 2022.
Visual media and platform revenue declined 0.4% to 202.1 billion yen ($1.4 billion). Within the segment, gaming revenue fell 9.5% to 98.2 billion yen ($680 million).
Stray Kids’ “Social Path (feat. LiSA)” was the top music release for Sony Music Entertainment Japan for the full fiscal year. Other top releases in Japan were King Gnu’s The Greatest Unknown, SixTONES’ The Vibes and two releases by Nogizaka46: Monopoly and Ohitorisama Tengoku.
For the second straight quarter, Sony Music’s operating income of 301.7 billion yen was the largest of any Sony Corp. business and accounted for about a quarter of the parent company’s total operating income. Although Games & Network Services’ revenue of 4.26 trillion yen ($29.55 billion) was more than 2.5 times Sony Music’s revenue, it had operating income of 290.2 billion yen ($2 billion) – about 4% lower than Sony Music’s operating income.
Even though Sony Corp.’s full-year revenue grew about 13% on a constant currency basis, the company is wary of uncertain business conditions and volatility. As such, Sony Music’s parent company is putting a greater focus on earnings, efficiency and business profitability.
During the earnings call, Sony Corp.’s management discussed the company’s “mid-range plan” that includes a partial spin-off off its financial services division in Oct. 2025 and increasing focus on growth in its three entertainment segments — music, film and games and network services — and its imaging and sensing solutions business. The parent company aims to achieve an annual growth rate of 10% or more in these business segments.
“In the music segment, we continue to aim to grow faster than the market by strengthening our efforts in emerging markets, increasing monetization opportunities for our music catalog, and incorporating adjacent businesses such as merchandising,” said Hiroki Totoki, president, COO and CFO.
Looking ahead to the current fiscal year ending March 31, 2025, Sony Music expects 4% increases in both revenue and operating income.
Sony Music’s fiscal fourth quarter revenue climbed 23.5% to 422.2 billion yen ($2.85 billion). Recorded music revenue in the quarter rose 29.4% to 288 billion yen ($1.94 billion) due to 23.9% growth in streaming revenue and a 91.9% improvement in the “other” category. Music publishing revenue grew 25.5% to 82.9 billion yen ($558.6 billion). Visual media and platform revenue dropped 3.8% to 51.4 billion yen ($346.6 million) due to a 22.2% decline in gaming revenue.
Both SOS and UTOPIA were also Sony Music’s top two albums in the fiscal fourth quarter as well as the full year. Other top albums in the quarter were 21 Savage’s American Dream, Beyoncé’s Cowboy Carter, Bad Bunny’s nadie sabe lo que va a pasar mañana, Peso Pluma’s Genesis, Bad Bunny’s Un Verano Sin Ti, Tate McRae’s Think Later, Justin Timberlake’s Everything I Thought It Was and Harry Styles’ Harry’s House.