Sony Music Entertainment UK’s profit triples

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Music giant sees profits triple at British Arm after downplaying impact of record store closures

The music giant behind Beyonce and Robbie Williams has seen profits triple in its UK arm after downplaying the impact of record store closures.

Sony Music Entertainment UK made a profit of £98m in the year to March 31, 2021, compared to £31m the previous year. Turnover was flat at £280million, according to accounts filed at Companies House.

Company directors said that due to the pandemic, “there has been a decline in the market for physical product sales and some ancillary revenue streams.”

However, he said streaming growth and cost savings had “minimised” the impact.

In tune: Sony Music Entertainment UK made a profit of £98m in the year to March 31, 2021, up from £31m the previous year

Sony’s UK branch is part of the Japanese conglomerate and has seen its profits rise due to a one-time increase in internal group revenue. It did not pay a dividend last year.

The rise in profits comes as a row rages over record labels’ revenue from streaming. Last year, MPs called for artists to receive a bigger share of streaming revenue.

The government has asked the Competition and Markets Authority to carry out a study on the main record companies, Universal, Sony and Warner.

Last week independent music companies called for it to be expanded to include Apple and Spotify.

Streaming growth helped Universal Music Group float to $40 billion last year.

But there are signs that streaming growth is slowing, with vinyl sales growth in the UK outpacing it last year.

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