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Access the Best in Music. a Digital Version of Every Issue, Featuring: Cover Stories

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Access the Best in Music. a Digital Version of Every Issue, Featuring: Cover Stories Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE MAY 13, 2020 Page 1 of 22 INSIDE Sony’s Music Operations Post • Reps. Pascrell and Nearly 40% Gain in Operating Porter: Ticketmaster Needs to Do More to Income as Streaming Revenue Surges Refund Fans • Brands Seeking BY ED CHRISTMAN ‘Comfort Food’ Songs for Ad Synchs During Sony Corp.’s music segment saw a strong rebound said, according to a transcript posted on the com- Pandemic in operating income to ¥30.34 billion yen ($278.3 pany’s website of its conference call with Wall Street million) for its fiscal fourth quarter ended March 31, analysts. “The impact of the delays in new music is • Eventbrite Posts Big Losses in First which represented a 39.3% gain from the ¥21.79 bil- limited at this time in countries like the U.S. where the COVID-Impacted lion yen ($197.52 million) posted in the corresponding proportion of music that is streamed is high. But in Earnings Report, period in the company’s fiscal 2018 year. countries like Japan and Germany where the propor- Reveals Three-Tiered With the COVID-19 pandemic beginning in most tion of music that is streamed is relatively low, sales Refund Plan countries in March, it appears to have had little of CDs and other packaged media sales are decreasing • How We Work impact on the fourth quarter performance of Sony’s due to restrictions on going outside.” Now: Big Beat music operations. For the full year, the company Inching Towards $2 Billion Records Senior VP/ estimated that music operations might have lost 1% in Music revenue was down slightly (0.6%) to ¥208 GM Gina Tucci revenue due to the pandemic. billion yen ($1.94 billion) from ¥212.8 billion yen • Tencent Music But looking ahead, the company says that physical ($1.93 billion), but that was due to weak performance Revenue Hit New titles and merchandising have been weakened in its in the visual medium/platform segment, which is Highs in Q1 as second quarter by the pandemic, while also saying mainly mobile gaming revenue and some tertiary Coronavirus Spread new releases had been delayed; and that music licens- music income. The latter segment experienced lower Through China ing revenue would probably be off due to a reduction sales in its Fate/Grand Order gaming application. • SiriusXM CFO in advertising spends and curtailed production of film, Without the visual medium/platform piece, music Says Satellite Radio TV and commercials. operations actually grew 12.4% to ¥157.12 billion Faces Uncertain “The release of new music is being delayed primar- yen ($1.441 billion) versus ¥139.8 billion yen ($1.27 Coronavirus Impact ily because some artists are unable to record songs billion), largely on the strength of a 26% surge in and music videos,” Sony Corp. CFO Hiroki Totoki (continued) ACCESS THE BEST IN MUSIC. A DIGITAL VERSION OF EVERY ISSUE, FEATURING: COVER STORIES . SPECIAL REPORTS . CHARTS . REVIEWS INTERVIEWS . EVENT COVERAGE & MORE AVAILABLE FREE TO CURRENT BILLBOARD SUBSCRIBERS billboard.com/iPad ANDRE HARRELL 1960-2020 LEGEND. VISIONARY. FRIEND. WE WILL NEVER FORGET YOU. ANDRE HARRELL BILLBOARD FULL PAGE AD Size: 10” x 13” (Trim) | 10.5” x 13.5” (Bleed) | 9.25” x 12.25” (Safety) 1 Page 3 of 22 IN BRIEF streaming revenue. But even through it didn’t forecast 2020’s the dollar for the fourth quarter of 2018, as Sony’s music segment consists of Sony music revenue, its filings included a para- denoted in Sony’s financial results. For the Music Entertainment, Sony Music Japan, graph that appeared to estimate that music full year, the exchange rate used is 108.7 yen Sony/ATV Music Publishing and the afore- operating income this year will be off about to the dollar for 2019 and 110.9 yen to the mentioned visual medium/platform. 25% to 40% from its 2019 results due to the dollar for 2018. During the fourth quarter, the company downturn. Panning Out to View the Full Year cited strong activity from Harry Styles’ Fine Breaking out the music operations, the For the full year, Sony’s music segment Line, Future’s Future Releases, Doja Cat’s company said recorded music garnered produced ¥142.35 billion yen ($1.31 billion) Hot Pink, Jackboys’ self-titled release, Ozzy revenue of ¥117.05 billion yen ($1.44 billion), in operating income on revenues of ¥838.35 Osbourne’s Ordinary Man, Lil Nas X’s 7 EP, a 12.1% increase over the ¥104.4 billion yen billion yen ($7.82 billion). While that Travis Scott’s ASTROWORLD, Luke Combs’ ($946.3 million) the company tallied in the represents a 5.3% increase in revenue from What You See Is What You Get, Camila Ca- fourth quarter of 2018; while music publish- the prior year’s total of ¥807.5 billion yen bello’s Romance, Khalid’s Free Spirit, and in ing posted revenue of ¥40.07 billion yen ($7.3 billion), operating income was down Japan King Gnu’s Ceremony and a few titles ($367.6 million), a 13.2% increase over the 38.8% from ¥232.5 billion yen ($2.1 billion) from Nogizaka46. ¥35.4 billion ($320.9 million) accumulated but that was due to an extraordinary gain in Getting back to its operating income, in the year-earlier period. fiscal 2018 from the EMI Music Publishing that performance means that the segment’s Within recorded music, streaming grew acquisition. operating margin improved more than nearly 26% to ¥69.95 billion yen ($641.7 Without the gain from the consolidation four percentage points to 14.6% of revenue, million), but physical also grew to ¥21.4 bil- of the EMI acquisition, operating income in as compared with the 10.3% the segment lion yen ($196.3 million) from ¥19.5 billion 2018 would have been ¥127.2 billion yen. So tallied in 2018’s fourth quarter. Moreover, yen ($177 million), a 9.6% gain. Meanwhile, when compared to 2019’s operating income 2019’s performance brings the music unit downloads were down 4% to ¥8.63 billion of ¥142.35 billion yen, that produced a 23% back to 2017 levels when it had 30.91 billion yen ($79 million) from almost ¥9 billion yen gain. So when compared to 2020’s operating ($285.13 billion) in operating income, or a ($81.5 million) and other income streams income of ¥142.35 billion yen, that produced 15% operating margin. like synchronization and merchandising fell a 11.9% gain. A Stormy Forecast nearly 16% to ¥17.1 billion yen ($157 million) As a percentage of income, that means the Looking ahead, Sony didn’t forecast its from ¥20.3 billion yen ($184 million). company’s music segment produced an op- fiscal guidance for music’s sales and operat- As a percentage of revenue, that breaks erating margin of 17% for 2018, which is up ing income for 2020, as it usually does at out to 59.8% for streaming and 7.4% for from 2018’s 14.3% operating margin — again year-end. Instead, it will probably do so at downloads, which means digital totals not counting the gain from the full EMI the end of the fiscal second quarter after 67.1%; while physical is at 18.3% and other is acquisition in operating results. its operations have had more experience in now 14.6%. As in its quarterly results, the visual dealing with the economic recession caused This story uses ¥109 yen to the dollar for media/platform dragged down the music by the pandemic. the fourth quarter of 2019 and 110.3 yen to segment’s performance. Without that opera- DECISIVE INTELLIGENCE. DELIVERED DIGITALLY. CLICK HERE FOR FREE DELIVERY DIGITAL NEWSLETTERS PROMOTION UPCOMING SPECIAL FEATURES PRIDE INDIE 2020 L A B E L P O W E R P L AY E R S On June 13th, Billboard will publish a On June 13th, Billboard will publish On June 13th, Billboard will publish GRAMMY® First Look special feature its fourth annual Indie Label Power its 2nd annual Pride issue honoring showcasing the artists, producers Players List. This special feature in culturally moving and influential and other creative professionals advance of Indie Week (6/15-6/18) people who have contributed to whose music was released from and the Libera Awards will profile the community’s history and its September 2019- June 2020 and look leading executives at top independent current landscape. In response to the current global health shift to at the early contenders for the 63rd record labels, publishing companies digitally driven content, Billboard GRAMMY® Awards in the categories and distribution companies. and The Hollywood Reporter will of Record of their Year, Song of the Positioning themselves as the host this year’s Pride Summit on Year, Album of the Year and Best driving force behind the success of June 13th as a virtual conference New Artist. independent music, these executives that gathers an influential audience contribute to the independent music of consumers and influencers sector and to the world of music in celebration of the LGBTQ at large. community. ISSUE DATE: 6/13 AD CLOSE: 6/3 MATERIALS DUE: 6/4 CONTACT: Joe Maimone Gene Smith 212.493.4427 | [email protected] 973.452.3528 | [email protected] Lee Ann Photoglo Ryan O’Donnell 615.376.7931 | [email protected] +447843437176 | [email protected] Debra Fink Marcia Olival 323.525.2249 | [email protected] 786.586.4901 | [email protected] Cynthia Mellow 615.352.0265 | [email protected] BBHA_UPCOMING_ISSUE_2020.indd 1 5/7/20 10:24 AM Page 5 of 22 IN BRIEF tion, music revenue would have totaled Meanwhile, the parent Sony Corp.
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