Sony's Music Division Sees Revenue Surge by 7% in Q1 Fiscal Year
Sony Music's Growth in Q1 2025 and Financial Year Forecast
Sony Corp's Music segment is forecasted to grow in the current financial year, following a strong performance in the fiscal first quarter ending June 30, 2025. The company has revised its revenue forecast upwards by 1%, primarily due to increased revenues from streaming services.
For Q1, the Music segment’s total revenue increased by 5% year-on-year in yen terms, with recorded music streaming revenue growing 7% on a U.S. dollar basis and music publishing revenue up 8%. This growth was driven by a continued expansion of music subscription streaming revenues across recorded music and publishing, a strong increase in physical music sales, up 11% year-on-year, and ongoing monetization of intellectual property through anime and film adaptations.
Key contributors to the growth were top-selling artists such as Bad Bunny, SZA, Sleep Token, Tate McRae, Pink Floyd, Ateez, Bruce Springsteen, Jennie, and Miley Cyrus. The robust operating income increase for the Music segment, up 8% in Q1 and 19.9% in Q2 2025, with adjusted operating income before depreciation and amortization (OIBDA) rising strongly, indicates improved profitability.
While operating income forecasts for the fiscal year remain essentially flat compared to previous estimates, the modest upward revision in sales highlights optimism, especially driven by streaming service growth. This growth is occurring despite some currency exchange headwinds and mixed results in other revenue categories like live, merchandise, and sync revenues.
The music segment's total revenue and operating income increased by 5% in yen to 465 billion yen year-on-year, and the operating income for the segment increased by 8% to 93 billion yen. The Sony Music segment includes Sony Music Entertainment, Sony Music Entertainment (Japan), and Sony Music Publishing.
The revised forecast includes an expected increase in revenue from live, merchandise, and sync revenue, offering further potential for growth in the coming quarters. The Music segment's growth in FY2025 is primarily driven by sustained increases in streaming revenues, physical sales rebound, and diversified IP monetization strategies amid a shifting global media landscape.
- The increased revenues from the Music Publishing sector, which saw an 8% growth in Q1 2025, are significant contributors to Sony Music's projected growth in the current financial year, as stated in the music segment's financial year forecast.
- The entertainment industry's ongoing expansion, as demonstrated by Sony Corp's Music segment growth in the fiscal first quarter of 2025, is evident in the robust performance of business sectors like finance, particularly from streaming services, physical music sales, and intellectual property monetization through anime and film adaptations.
