TOKYO, Japan (CelebrityAccess) — When Sony announced their earnings report for the 2017-18 fiscal year, it revealed that the company’s recorded music business had seen revenue soar on updrafts created largely by music streaming.
Sony Music reported revenue of about $4 billion, an increase of 12% over the same period in 2016. Streaming played a major role in those results, with revenue from the segment up by 37% to $1.8 billion and comprising 44% of Sony Music’s total.
Surprisingly, revenue for physical was up as well, with Sony posting an increase of $10 million with revenue of $1.2 billion. The gains in physical were helped by strong product sales in Japan and renewed interest in premium vinyl.
At the same time, downloaded music suffered, falling by a precipitous 18% to just under $450 million for the fiscal year.
Highlights of Sony Music’s catalog this year included P!nk’s Beautiful Trauma, DJ Khaled’s Grateful and Camila Cabello’s Camila.
The success of Sony’s music division comes against the backdrop of what the Wall Street Journal described as record-breaking financials for Sony and news of the turnaround comes just three months after Kaz Hirai announced plans to step down as group CEO.
“We are glad that we delivered what we promised,” said finance chief Hiroki Totoki, who took office with new chief executive Kenichiro Yoshida this month.
Mr. Yoshida played a key role in the company’s turnaround. As Sony’s chief financial officer, he led cost cutting measures at the conglomerate and oversaw a new focus on the company’s profitable operations.
Other bright spots at Sony include its video games business, including its flagship Playstation brand, as well as mobile gaming. Sony’s image sensors, which are widely used in smartphones, have also been a major profit center for the company, with sales revenue topping $63 million in 2017.