Monday, May 18, 2009

SONY MUSIC SHOWS LATEST BIG-LABEL PLUNGE


The music industry has been discussing the 'demise of record labels' for years, though a total implosion has yet to happen. Perhaps major labels are simply survivalists, and their models will evolve past the recording. Another version, according to some insiders, is that the panic button is being pressed by major label executives, and longer-term viability remains are serious question mark.

Against that backdrop, Sony Music Entertainment became the latest mega-label to report serious financial declines. The company experienced a pro forma revenue dip of 16 percent during the six-month period ending March 31st, according to a financial release.

In total, sales were 169.3 billion yen, or $1.728 billion, based on a calculation that normalizes for the recently-acquired BMG. In its financial report, the company blamed an "accelerated decline in the worldwide physical market" and unfavorable current exchanges.

The decline is part of a broader loss at parent Sony Corp., one that surpassed $1 billion for the fiscal year.

Story by news analyst Alexandra Osorio.

SOURCE