Sony Music Group‘s strong calendar Q1 results were revealed today – including a $1.3bn recorded music revenue haul in the three months to end of March, and an 11% YoY jump in global publishing revenues.
Meanwhile, SMG’s recent acquisition drive continues apace under the leadership of its Chairman, Rob Stringer.
In the past three months, SMG has announced three industry-shaking deals:
- In February, it announced the $430 million acquisition of AWAL and Kobalt Neighbouring Rights.
- Earlier this month, it announced the $255 million acquisition of Brazil’s biggest domestic label, Som Livre.
- And in March, Sony Music Publishing – led by CEO & Chairman, Jon Platt – announced the buyout of Paul Simon’s song catalog for an undisclosed (but definite nine-figure) sum.
If the Paul Simon deal came in anywhere near $300 million (and we’re not saying it did, but the $300m-$400m buyout of Bob Dylan’s catalog by Universal surely makes it possible), it would mean Sony committing the best part of a billion dollars across three music deals in the first four months of 2021 alone.
Evidently, there’s even more where that came from.
Today (April 28) the Executive Deputy President and CFO of Sony Group Corp, Totoki Hiroki, delivered some strong words to investors about what Sony Music Group has up its sleeve for the months ahead.
“We are steadily improving our ability to discover and nurture artists and continuously create hits, and we aim to continue to increase our profitability going forward,” said Hiroki of Sony’s music operation, while noting that both the AWAL deal and the Som Livre buyout were agreed but yet to clear regulatory approval.
“Opportunities for investment in the music segment are steadily increasing, and we are aggressively pursuing them.”
Totoki Hiroki, Sony Group Corp (speaking today)
Tellingly, he added: “Opportunities for investment in the music segment are steadily increasing, and we are aggressively pursuing them.”
He ain’t kidding.
Over in Mexico this week, Sony Music Entertainment Mexico has made a big announcement.
It has agreed to acquire the music catalog of the Mexican regional label and management company, Remex Music, for an undisclosed fee.
Monterrey and US-based Remex’s repertoire includes recordings by local hitmakers such as Edwin Luna y la Trakalosa de Monterrey, Leandro Ríos, Diego Herrera, and Banda Tierra Sagrada.
Remex, founded and run by Germán and Domingo Chávez, will continue as an independent label, starting again with a blank slate but continuing to release new music via Sony’s The Orchard.
“We are very happy for the acquisition of the diverse and rich catalog of Remex Music, the result of the successful work that Domingo Chávez and Germán Chávez have carried out over the last few years.”
Roberto López, Sony Music Mexico
The President of Sony Music Mexico, Roberto López , said (translated): “We are very happy for the acquisition of the diverse and rich catalog of Remex Music, the result of the successful work that Domingo Chávez and Germán Chávez have carried out over the last few years.
“We are proud to team up with such talented executives who will continue to develop their cast in the dynamic and vibrant Mexican Regional segment. I am very grateful to Domingo and Germán for their trust in our company. This musical catalog is for us a new treasure that we will take care of in the best way. ”
Germán and Domingo Chávez , presidents of Remex Music, commented: “A decade after starting Remex Music, it is a pride that executives such as Roberto López, President of Sony Music México, have shown interest in our talent and have the confidence in the cast of the company.
“This opens the possibility of mergers with national and international artists of various musical genres, which will further develop the market for our artists. ”
The Orchard Senior VP, Global Artist & Label Partnerships, Jason Pascal said: “Mexican Regional [music] has been an important part of The Orchard’s global strategy for more than a decade; our Mexico City team has the experience and the approach necessary to support record labels in the genre to achieve their goals.
“Remex has been a priority for us since the beginning of our distribution relationship and it has been a special privilege to be part of its success story. We look forward to continuing to work on more projects together. “Music Business Worldwide