Sony Music Sees Robust Revenue Growth In Q4 2025 Amid Diverse Gains

Financial Highlights from Q4 2025

Sony Music Group has announced a remarkable double-digit revenue increase for the fourth quarter of 2025, a period characterized by vibrant activity in various sectors of the music industry. According to the latest earnings report from Sony Group Corp., the music division generated a substantial ¥538.66 billion, translating to approximately $3.43 billion in external music revenue during the months of October, November, and December. This figure underscores the resilience and dynamism of Sony Music in a rapidly evolving industry landscape.

Breaking Down the Revenue Sources

Recorded Music Performance

The lion’s share of this revenue came from recorded music, which alone accounted for $2.26 billion. This segment displayed a healthy year-over-year growth of 12.5%, propelled in part by the persistent popularity of streaming services. Streaming continues to be a significant revenue driver, contributing $1.42 billion, though its growth rate has moderated to a more modest 6.3% year-over-year. This trend reflects a broader industry pattern, where streaming growth is stabilizing as market saturation approaches.

Resurgence of Physical Formats

Interestingly, physical music formats are witnessing a renaissance, with vinyl sales emerging as a bright spot for the company. Vinyl revenue reached $224.61 million, marking a 16.7% increase compared to the previous year. The resurgence of vinyl is not just a fleeting trend; it represents a cultural revival that resonates with both collectors and new listeners alike. Additionally, permanent downloads—a category that had been in decline—managed to bounce back slightly, rising 7.4% to $44 million. This revival suggests that there remains a market for ownership in an increasingly streaming-centric world.

Merchandise and Live Events Fueling Growth

The Role of Merchandising

Beyond recorded music, Sony Music has reaped significant benefits from its merchandise and live event segments, which collectively contributed to a 30.1% year-over-year growth in the 'other' revenue category, totaling $572.11 million. This uptick can be attributed to a combination of factors, including successful merchandise sales tied to high-profile artists and a resurgence in live performances following pandemic-related disruptions. Artists like Rosalía have not only generated buzz through their recordings but have also leveraged their live shows to enhance their brand and revenue streams.

Top Artists Driving Sales

In terms of top-selling projects, Rosalía's Lux emerged as a standout, driving substantial revenue for Sony Music in the fourth quarter. Other notable contributors included Pink Floyd's classic album Wish You Were Here and Tyler, the Creator's Chromakopia. The diversity of these top sellers speaks to the eclectic tastes of today's music consumers, who are increasingly drawn to a mix of contemporary and classic sounds.

Implications for the Music Industry

The financial success reported by Sony Music not only reflects the company’s robust strategies but also highlights broader trends within the music industry. The dual focus on both digital and physical formats, coupled with thriving live performances, indicates a potential pathway forward for other music labels grappling with shifting consumer behaviors. As the landscape continues to evolve, the ability to adapt to these changes will be crucial for sustaining growth.

As we look ahead to 2026 and beyond, it is evident that the music industry is on a transformative journey. Sony Music’s impressive revenue figures in Q4 2025 serve as a testament to the resilience of music as a cultural force and an economic driver. With artists continuing to innovate and engage with fans in new ways, the future appears bright for both the label and its diverse roster of talent.

This article is based on publicly available industry news and includes HydraSound editorial analysis.