Decline in packaged media and shift to digital distribution
First written in FY2016. 15 of 21 entries say "Restated". Latest entry: FY2026.
Sony Group moved to the "Worse" side of this theme in 2026, 6 years after the typical company in this theme (2020).
The whole theme swung hardest in 2017: 3 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In addition, distributors of digital music and video content may use technologies such as generative AI to increase the amount of content they produce in-house for their own services, which could reduce demand for content produced by Sony.」
The company identified content production by distributors themselves, using technologies such as generative AI, as a channel of impact in addition to the risks of oligopolization among digital distributors and in-house production by distributors. - FY2025-H1RestatedAnnual report
「Revenue increased by ¥123.3 billion year on year to ¥890.2 billion. The substantial increase was mainly due to foreign exchange movements, higher revenue from live events, merchandise sales, and licensing in music production, and higher revenue from streaming services in music production and music publishing.」
In the music business, streaming service revenue continued to increase and, together with live event, merchandise, and licensing revenue, contributed to higher revenue. This continues to indicate a shift to digital distribution. - FY2024-Q1RestatedAnnual report
「The substantial increase in revenue was mainly due to higher revenue from paid subscription streaming services in music production and music publishing, as well as the impact of foreign exchange movements.」
Regarding the shift from packaged media to digital distribution, increased revenue from paid subscription streaming services continued to contribute to higher revenue in the music business. - FY2023-Q2RestatedAnnual report
「The increase in revenue from music production and music publishing was mainly due to higher revenue from paid subscription streaming services, including the success of new releases in music production.」
In music production and music publishing, revenue from paid subscription streaming services continued to increase, continuing to indicate a shift to digital distribution. - FY2023-Q1RestatedAnnual report
「The increase in revenue from music production and music publishing was mainly due to higher revenue from paid subscription streaming services, including the success of new releases in music production.」
Regarding the shift from packaged media to digital distribution, increased revenue from paid subscription streaming continued to contribute to higher revenue in the music business. - FY2022-Q2RestatedAnnual report
「Revenue increased by ¥118.5 billion year on year to ¥526.5 billion. The substantial increase was mainly due to higher revenue from paid subscription streaming services in music production and music publishing, as well as higher revenue from ad-supported streaming services, which had been affected by the spread of COVID-19 in the same period of the previous year.」
Revenue from streaming services increased in music production and music publishing, continuing the shift from a focus on packaged media to a focus on digital distribution. - FY2021-Q2RestatedAnnual report
「Revenue declined by ¥13.5 billion year on year to ¥408.0 billion. The decrease was mainly due to lower revenue in the businesses described below, primarily as a result of the spread of COVID-19, despite increased revenue from paid subscription streaming services. Music production and music publishing reported lower revenue as sales of packaged media, revenue from ad-supported streaming services, and music licensing revenue declined.」
While revenue from paid subscription streaming continued to increase, sales of packaged media, ad-supported streaming revenue, and licensing revenue declined. - FY2021-Q1RestatedAnnual report
「Although revenue from paid subscription streaming services increased, revenue declined by ¥25.1 billion year on year to ¥177.1 billion, mainly due to the spread of COVID-19. In music production and music publishing, sales of packaged media, revenue from ad-supported streaming services, and music licensing revenue declined.」
While paid streaming revenue continued to increase, sales of packaged media, ad-supported streaming revenue, and licensing revenue declined due to the impact of the spread of COVID-19. - FY2020RestatedAnnual report
「The performance of this segment in fiscal 2019 reflected continued growth in the recorded music market, driven by the expansion of digital streaming distribution, despite lower revenue from physical media and download sales.」
The company reconfirmed that the ongoing shift from physical media and downloads to streaming, together with the expansion of digital streaming, is driving growth in the music market. - FY2020-Q3RestatedAnnual report
「The increase in revenue was mainly due to higher music publishing revenue, primarily from the consolidation of EMI, and increased streaming revenue, despite lower revenue in the visual media and platform business, including lower revenue from the game application for mobile devices "Fate/Grand Order."」
In the music business, the consolidation of EMI and increased streaming revenue are contributing to earnings, continuing to indicate a shift to digital distribution. - FY2020-Q1RestatedAnnual report
「The substantial increase in revenue was mainly due to higher music publishing revenue, primarily from the consolidation of EMI, and higher music production revenue due to increased streaming revenue, despite lower revenue in the visual media and platform business, including lower revenue from game applications for mobile devices such as "Fate/Grand Order."」
Streaming revenue in the music business continues to increase, making the shift to digital distribution a factor contributing to earnings. - FY2019WorsenedAnnual report
「As more music and video content is consumed through digital streaming networks, further concentration among digital music distribution companies could adversely affect pricing by reducing competition for Sony's music content. In addition, distributors of digital music and video content may increase the amount of content they produce in-house for their own services.」
The company identified concentration among distributors and content production by the distributors themselves as new channels of impact among the risks associated with the shift to digital. - FY2019-Q3RestatedAnnual report
「Revenue was ¥594.7 billion, roughly unchanged from the same period of the previous year, as the consolidation of EMI from 14 November 2018 and increased streaming revenue drove higher music publishing revenue, despite lower revenue in music production due to the impact of changes to the accounting standards for revenue arising from contracts with customers.」
Streaming revenue continued to increase in music publishing, contributing to earnings as the business shifts to digital distribution. - FY2019-Q2RestatedAnnual report
「Music publishing reported higher revenue due to increased streaming revenue. Music production, however, also saw increased streaming revenue, but this was offset by the impact of changes to the accounting standards for revenue arising from contracts with customers, resulting in lower revenue.」
Streaming revenue continued to increase in music publishing and music production, continuing to indicate a shift to digital distribution. - FY2019-Q1RestatedAnnual report
「Music production saw increased streaming revenue, but this was offset by the impact of changes to the accounting standards for revenue arising from contracts with customers, resulting in revenue remaining roughly unchanged from the same period of the previous year.」
Streaming revenue in the music business continues to increase, indicating the ongoing shift from packaged media to digital distribution. - FY2018-Q2RestatedAnnual report
「Music production also reported a substantial increase in revenue, mainly because streaming revenue continued to grow.」
Regarding the shift from packaged media to digital distribution, increased streaming revenue continued to contribute to higher revenue in the music business. - FY2018-Q1RestatedAnnual report
「Music production reported higher revenue, mainly due to increased streaming revenue.」
Regarding the shift from packaged media to digital distribution, the company stated that increased streaming revenue was a factor behind higher revenue in the music business. - FY2017MaterialisedAnnual report
「This downward revision was mainly due to lowering our previous earnings outlook for the home entertainment business, including packaged media such as BD/DVDs and digital sales, primarily because of the accelerating contraction of the market.」
The impact of the shrinking packaged media market and the shift to digital led to a reduction in the earnings outlook for the film production business. - FY2017-Q3MaterialisedAnnual report
「In the film business, we revised down our outlook for future earnings from film production, mainly because we lowered our earnings outlook for the home entertainment business, including packaged media such as BD/DVDs and digital sales, due primarily to the accelerating contraction of the market.」
The impact of the shrinking packaged media market and the shift to digital is emerging as a downward revision to the film business earnings outlook and an impairment loss on goodwill. - FY2017-Q1ReframedAnnual report
「In the film and music entertainment businesses, the industry structure itself is undergoing significant change as digitization advances and streaming services prosper, and we expect content consumption by customers to diversify and demand to expand. For the Sony Group, which is capable of attracting outstanding creators, producing high-quality content and owns a large volume of such content, we view this changing environment as a major opportunity and will accelerate growth.」
The company has reframed the shift toward digitization and streaming not only as a risk from the decline of packaged media, but also as an opportunity for expanding content demand and driving growth. - FY2016First statedAnnual report
「Sales of music and video packaged media have declined across all regions due to industry-wide trends, including the overall maturation of packaged media formats such as CDs, DVDs and Blu-ray discs, the shift of music and video content to digital distribution, and intensifying competition for retail display space, and may continue to decline.」
The company cited declining packaged-media sales as an actual result and identified the risk that digital revenue from streaming and other sources may not sufficiently offset the decline.