Sony Music Entertainment UK triples its profits
Music giant behind Beyonce and Robbie Williams sees profits triple in UK branch after downplaying impact of record store closings
The music giant behind Beyonce and Robbie Williams has seen its profits triple in its UK branch after downplaying the impact of record store closings.
Sony Music Entertainment UK made a profit of £ 98million as of March 31, 2021, up from £ 31million the previous year. Turnover was flat at £ 280million, according to accounts filed with Companies House.
Directors of the company said that due to the pandemic, “there has been a decline in the market for sales of physical products and some ancillary revenue sources.” However, he said the continued growth and cost savings had “minimized” the impact.
In tune: Sony Music Entertainment UK reported a profit of £ 98million as of March 31, 2021, up from £ 31million the previous year
The UK branch of Sony is part of the Japanese conglomerate and has seen its profits increase due to a one-off increase in the group’s internal revenues. It did not pay a dividend last year.
The profit surge comes as a row rages on record label revenue from streaming. Last year, MPs called for artists to receive a greater share of streaming revenue.
The government asked the Competition and Markets Authority to conduct a study on the major record companies, Universal, Sony and Warner. Last week, independent music companies called for its extension to include Apple and Spotify.
The growth of streaming helped Universal Music Group float to $ 40 billion last year. But there are signs that streaming growth is slowing, with UK vinyl sales growth surpassing last year.