Sony Music Entertainment and Sony / ATV – Sony’s recorded music and publishing divisions, respectively – will merge under a single umbrella company next month, creating a structure in line with that of the other two major music companies. In an internal memo sent Wednesday and reviewed by Rolling stoneSony Corporation CEO Kenichiro Yoshida told his colleagues that the two entities will grow into a large “Sony Music Group” under the leadership of current Sony Music Entertainment chairman Rob Stringer.
While SME Japan will remain a separate entity, SME and Sony / ATV Music Publishing will now both report to Stringer, who will lead both SME and the new parent company. The reorganization means that Sony’s record labels and artist roster – which includes terrific artists like BeyoncÃ© and Justin Timberlake as well as new signers like Travis Scott and Lil Nas X – will benefit from a “higher degree of collaboration. high ‘with Sony’s publishing business, although the two companies will continue to operate independently. It also puts Sony in organizational alignment with its competition. (Warner’s recorded music and publishing divisions both exist under the Warner Music Group, under the leadership of CEO Stephen Cooper; Universal Music Publishing Group and Universal Music Group Recordings Inc also operate under a single entity, headed by President and CEO Lucian Grainge.)
âThe aim of this new group is to further strengthen and consolidate Sony’s position as a leader in the music industry and create new value for the company,â Yoshida wrote, noting that âwe have felt it was particularly important at this point for Sony to take proactive steps to maintain its leadership position “due to the rapid pace of transformation of the music industry through music streaming services. Read his full letter below.
Note from Sony Corporation CEO Kenichiro Yoshida to the company:
As part of Sony’s business goals to increase collaborations between its entertainment units, get closer to creators, and unlock more strategic opportunities, I would like to let you know that as of August 1, we are bringing companies together Sony recorded music and music publishing outside of Japan. to create a new Sony Music Group. I asked Rob Stringer to take on the role of chairman of this new group, in addition to his current role as CEO of Sony Music Entertainment.
The aim of this new Group is to further strengthen and consolidate Sony’s position as a leader in the music industry and to create new value for the company. This unification will help us foster a higher level of collaboration between our recorded music and music publishing businesses, while respecting and maintaining the independence and unique culture of each organization. As part of this new structure, Jon Platt, President and CEO of Sony / ATV Music Publishing, will report to Rob. Jon will retain the authority and responsibility he currently has for operating the music publishing business.
The rise of streaming services and other changes in the market have transformed our music business and created more growth opportunities than ever before. As a result, we felt it was particularly important at this point for Sony to take proactive steps to maintain its leadership position in the music industry by accelerating collaboration and value creation between our recorded music businesses. and world-class music publishing to strengthen our value. to artists, songwriters and business partners.
While Sony Music Entertainment Japan will remain a separate entity, reporting to me, I hope the new Sony Music Group and SMEJ will continue and strengthen their collaboration in the spirit of One Sony.
It has been 51 years since Sony entered the music business through a CBS Sony Records joint venture in 1968. And, with the acquisition of EMI Music Publishing in 2018, Sony has grown into an even stronger music company.
I have the utmost respect and trust in Rob and Jon who are exceptional leaders with enormous industry expertise and who have the strong support of their employees, artists and songwriters. Working together and with your help, I am confident that they will take Sony Music Group to a new level of success, remaining the world’s most artist-friendly music company for artists and songwriters, and strengthening and securing more our legacy for the future.
President and CEO