Sony Music’s Quarterly Sales Surge 21% on Streaming, ‘Demon Slayer’ Success
Sony Music reported record-high quarterly earnings on Tuesday and its Tokyo-based parent company raised its overall annual earnings forecast, as rising streaming income and the success of the anime series Demon Slayer: Kimetsu no Yaiba Infinity Castle made the music segment a standout success for the Japanese conglomerate.
Overall sales for Sony Music rose 21% from to 542.4 billion Japanese yen ($3.65 billion) and operating income rose 28% to 115.4 billion yen ($776 million) from the year-ago quarter, based on foreign exchange rates from Sept. 30.
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Sony executives raised their full-year forecast for the music division’s sales by 6% to 1.98 trillion yen ($13.3 billion) and raised the operating income forecast by 7% to 385 billion yen ($2.6 billion), adding they do not expect any meaningful impact from U.S. tariffs. Sony raised its overall fiscal 2025, forecast by 3% to 12 trillion yen ($80.7 billion).
Like Netflix’s Kpop Demon Hunters — which currently holds the No. 2 spots on the Billboard 200 and Hot 100 charts for its soundtrack and hit single “Golden” — Sony execs said Demon Slayer‘s success demonstrates how a conglomerate like Sony can increase the value of intellectual property by combining in-house production with talented creators. More than 77 million people have seen Demon Slayer generating box office revenue worth 94.8 billion yen ($637 million), as of Oct. 13, the company said. The film was distributed by Toho in Japan and Crunchyroll and Sony Pictures elsewhere.
Sony’s music segment overall reported streaming revenues increased by 12% in dollars for recorded music and by 25% for music publishing. The New York-based Sony Music Group reported double-digit growth in sales and operating income driven by the success of Bruce Springsteen, SZA, Tyler, the Creator, Bad Bunny and Tate McRae. Revenues from recorded music rose by 10.5% to 321 billion yen ($2.16 billion), supported by a 7% increase in physical sales, and publishing revenues rose 16% to 106 billion yen ($721.7 million).
Revenue from Sony’s Visual Media & Platform (VM&P), which supported Demon Slayer, rose by 70% to 106 billion yen ($712.7 million) compared to a year ago.
Here are the highlights from Sony’s music segment’s second fiscal quarter:
- Overall Sony music segment sales rose by 21% to 542 billion yen, and operating income rose by 28% to 115 billion yen.
- Sony raised its full year sales forecast for the music segment by 6% and its operating income forecast by 7% on increased revenue expectations for Demon Slayer and more favorable foreign exchange rates.
- Adjusted OIBDA gained 25% to 140 billion yen on increased revenue.
- On a U.S. dollar basis, streaming revenues for the quarter increased +12% year-on-year in Recorded Music and 25% in Music Publishing.
- Recorded Music increased 10.5% to 321 billion yen
- Physical grew 7% to 27 billion yen.
- Music Publishing increased 16% to 106 billion yen
- VM&P increased 70% to 106 billion yen resulting mainly from “Demon Slayer”
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