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Crystal Ellis, Bethany Errickson,
Jennifer Jenkins, Matthew Williams
Microeconomics Presentation
By:
Meet Sony’s Team
Sony Music Entertainment is a
global recording and publishing
music company with over 60
locations across the world. They
are a subsidiary of Sony
Corporation in Japan, but their
global headquarters is in New
York.
Mission Statement: "To inspire the world to do great things through
the influence of music by promoting inspirational melodies and lyrics. The
orchard is a pioneering music, video and film distribution company and top-
ranked multi-channel network operating in more than 25 global markets."
Factors Affecting Demand
Sony Music has acquired the
majority of stake in an
entertainment company called
‘Proactive Entertainment’.
Sony relaunched Epic Records
with new business ventures,
expected to gross more in
revenue.
Sony Music demonstrates an
upward trend.
C. Tastes Within the Market
Sony Music’s revenue has been
steadily growing in recorded
music with over $ 6 million, and
with over $2 million in music
publishing.
There has been a steady
demand for Sony Music with a
gradual revenue increase each
year.
Sony’s combined recorded music and
music publishing operations
generated USD $8.38 billion in the
calendar year of 2022 with an 11.3%
increase per year.
A ubiquity strategy, readily available
may increase the number of potential
costomers.
On the contrary, imposing scarcity in
music adds perceived value to the
brand, promoting an urgent demand
for buyers for a “limited time offer”.
Factors Affecting Demand
Factors Affecting Supply
Price increases from digital
partners have been long overdue,
and are projecting forward to more
DSPs recognizing the value of
music, and will continue to rise.
Consumers want the same quality
but remain concerned that DSPs
are watered down by low quality
and insignificant quantity, which
negatively impacts loyal music
fans and “real artists”.
Installing unmanned
production lines was
expected to cut costs 70 per
cent at Sony’s mainstay TV
factory in Malaysia by the
fiscal year 2023, compared
with 2018.
The group also has
ambitions of using robotics
in smartphone and camera
manufacturing in the future
1. Shift to Digital: Sony expects a continued
shift towards digital consumption of
entertainment content, including movies
music, and game.
2. Technological Innovation: Anticipating
rapid technological advancements, Sony
expects to invest in research and
development to stay at the forefront of
innovation.
3. Global Market Expansion: Sony aims to
expand its prese . nce in emerging markets,
capitalizing on the growing middle class and
increasing disposable incomes.
4. Sustainability and Ethical Practices: Sony
expects to prioritize sustainability initiatives
1. High Barriers: Developing a brand
reputation and securing licenses for content
creation and distribution…
2. Technology and Innovation: Rapid
technological innovation necessitates
substantial R&D investment and expertise.
New entrants would need time to develop
comparable technologies, reducing the
immediate threat to Sony’s market
dominance…
3. Exit Factors: Competitors might leave the
market due to financial challenges, failure to
adapt to technological shifts, or inability to
compete effectively. .
Factors Affecting Supply
Sony Entertainment maintains a diverse
network of establishments, including
offices, stores, and production facilities.
The company’s headquarters are
situated in Tokyo, Japan. Notably, Sony
has a robust presence in the United
States, with offices and production
studios in locations such as Culver City,
Los angeles, California (Sony Pictures
Entertainment), and New York City
(Sony Music Entertainment).
Bailey Schulz (July, 24th, 2023) Music for More? Spotify Raising Prices, Premium individual plan $10.99.
https://www.usatoday.com/story/tech/2023/07/24/spotify-premium-price-increase/70456733007/
BMG (August 12th, 2023) Logo header.https://www.bmg.com/us/
BMG Entertainment INC (June 29th, 2023) Working at BMG Entertainment INC.https://www.musicbusinessworldwide.com/bmg-annual-
revenues-jumped-30-6-to-over-900m-in-2022/#:~:text=News-
,BMG%20annual%20revenues%20jumped%2030.6%25%20to%20over%20%24900m%20in,%24400m%20on%20catalog%20acquisiti
ons&text=BMG’s%20annual%20revenues%20hit,%2C%20year%2Don%2Dyear. https://www.zippia.com/bmg-entertainment-careers-
17011/
Damian Radcliffe (n.d., 2021) WNIP, COVID-19’s impact on the media, in 10 charts.
https://whatsnewinpublishing.com/covid-19s-impact-on-the-media-in-10-charts-2/
Digital Music News (n.d.) Sony Twitter Jpg, Sony Music Group.
Epic Records (April 27th, 2023) Sony Music Entertainment UK Relaunches Epic Records.https://www.sonymusic.com/epic/sme-uk-
relaunches-epic-records/
Facebook (January 10th, 2022) Sony Music Russia, Logo.
https://www.facebook.com/SonyMusicRussia/photos/a.469788043101782/4867480903332452/?type=3&paipv=0&eav=AfZeEBRk6ru-
4u5rMZy7YBGEneF4rLPOT5zjZbr3KHc8Lp7tDREHExqyoJlwrAb6rPs&_rdr
Glass Door (n.d.) Sony Music, Logo.https://media.glassdoor.com/l/72/72/d2/4b/sony-music-hq.jpg
https://www.digitalmusicnews.com/wp-content/uploads/2017/08/sony-twitter.jpg
https://e7.pngegg.com/pngimages/591/65/png-clipart-sony-music-logo-logo-sony-music-nashville-sony-entertainment-network-sony-
text-wordmark-thumbnail.png
https://www.zippia.com/universal-music-group-careers-43031/revenue/
J. Clement (August 9th, 2023) Statista, Digital download ratio of Sony PlayStation gaming software unit sales worldwide from fiscal
1st quarter 2019 to 1st quarter 2023.
https://www.statista.com/statistics/1202234/global-playstation-game-unit-sales-digital-downloads/
Kevin Webb and Seven Cohen July 20 2023
https://www.businessinsider.com/guides/tech/where-to-buy-ps5
Ep. 2: SUPPLY & DANCE, MAN! | Jon M. Chu
OLIGOPOLY (n.d. 2023) Cooperative strategy oligopoly market.https://www.linkedin.com/pulse/cooperative-strategy-create-oligopoly-
market-raunak-saha/
Marie Charlotte Götting (June 16th, 2023) Sony Corportation: Music revenue source 2019-2023.
https://www.statista.com/statistics/314357/sony-corporation-music-revenue-
source/#:~:text=In%20the%20fiscal%20year%202023,1.5%20billion%20dollars%20that%20year.
Music Business Worldwide (n.d. 2023) Sony Music Entertainment (SME or ‘Sony Music’) is the New York-based recorded
music company fully owned by Japan’s Sony Corporation.
https://www.musicbusinessworldwide.com/companies/sony/sony-music-group/sony-music-entertainment/
Sony Music Entertainment (August 13th, 2023) Sony Music Entertainment Mission Statement.
https://www.zippia.com/sony-music-entertainment-careers-38802/mission-statement/
BMG Entertainment INC (June 29th, 2023) Working at BMG Entertainment INC.
Qiao Li, David Wilson, Yanqui Guan (2020) The Global Film Market Transformation
in the Post-Pandemic Era
https://library.oapen.org/bitstream/handle/20.500.12657/62526/9781000902228.pdf?
sequence=1#page=18 Sony Music, (n.d. 2023) Featured Artists
https://www.sonymusic.com/artists/
Sarah Whitten (December 29th, 2020) CNBC, Statisa, this chart shows 202 had a chance
to break box office records, but Covid caused lowest haul in decades.
https://www.cnbc.com/2020/12/29/box-office-2020-sales-plummeted-80percent-the-lowest-
haul-in-decades.html Sony Music (n.d.) png images, Sony music logo.
Sony Music (April 18th, 2023) Sony Music Masterworks Acquires a Majority stake in
spain-based live event producer and promoter, Proactiv-entertainment.
https://www.sonymusic.com/masterworks/sony-music-masterworks-acquires-a-
majority-stake-in-spain-based-live-event-producer-and-promoter-proactiv-
entertainment/
Sony Music (n.d. 2021) Sony Music Russia, https://scontent-lga3-
2.xx.fbcdn.net/v/t39.30808-
6/269949943_4815174708563072_8972623665261589586_n.jpg?_nc_cat=105&cb=99be
929b-59f725be&ccb=1-
7&_nc_sid=300f58&_nc_ohc=CRF2Bel9JzgAX_lVyh9&_nc_ht=scontent-lga3-
2.xx&oh=00_AfD3fzNyGrqHqPTIjKVWuoChh3RLa5bIALe6E2MhBMnqlA&oe=64DA999F
Tim Ingham (March 30th, 2023) BMG annual revenues jumped 30.6% to over $900M in
2022, as it spent $400M on catalog acquisitions.
Universal Music Group (August 12th, 2023) Logo Header.
https://www.universalmusic.com/universal-music-group-expands-in-the-middle-east-and-
north-africa/
We The Economy. (2014, October 21). SUPPLY AND DANCE MAN! | Jon M. Chu. [Video
File].
https://www.youtube.com/watch?v=gDYvwUQ8e6w&list=PLTpcK80irdQhWpbm37oX1p5c
XTd840q4i&index=2

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GroupPresentation_MicroEconomics

  • 1. Crystal Ellis, Bethany Errickson, Jennifer Jenkins, Matthew Williams Microeconomics Presentation By:
  • 3. Sony Music Entertainment is a global recording and publishing music company with over 60 locations across the world. They are a subsidiary of Sony Corporation in Japan, but their global headquarters is in New York.
  • 4. Mission Statement: "To inspire the world to do great things through the influence of music by promoting inspirational melodies and lyrics. The orchard is a pioneering music, video and film distribution company and top- ranked multi-channel network operating in more than 25 global markets."
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  • 13. Factors Affecting Demand Sony Music has acquired the majority of stake in an entertainment company called ‘Proactive Entertainment’. Sony relaunched Epic Records with new business ventures, expected to gross more in revenue. Sony Music demonstrates an upward trend. C. Tastes Within the Market
  • 14. Sony Music’s revenue has been steadily growing in recorded music with over $ 6 million, and with over $2 million in music publishing. There has been a steady demand for Sony Music with a gradual revenue increase each year.
  • 15. Sony’s combined recorded music and music publishing operations generated USD $8.38 billion in the calendar year of 2022 with an 11.3% increase per year. A ubiquity strategy, readily available may increase the number of potential costomers. On the contrary, imposing scarcity in music adds perceived value to the brand, promoting an urgent demand for buyers for a “limited time offer”.
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  • 18. Factors Affecting Supply Price increases from digital partners have been long overdue, and are projecting forward to more DSPs recognizing the value of music, and will continue to rise. Consumers want the same quality but remain concerned that DSPs are watered down by low quality and insignificant quantity, which negatively impacts loyal music fans and “real artists”.
  • 19. Installing unmanned production lines was expected to cut costs 70 per cent at Sony’s mainstay TV factory in Malaysia by the fiscal year 2023, compared with 2018. The group also has ambitions of using robotics in smartphone and camera manufacturing in the future
  • 20. 1. Shift to Digital: Sony expects a continued shift towards digital consumption of entertainment content, including movies music, and game. 2. Technological Innovation: Anticipating rapid technological advancements, Sony expects to invest in research and development to stay at the forefront of innovation. 3. Global Market Expansion: Sony aims to expand its prese . nce in emerging markets, capitalizing on the growing middle class and increasing disposable incomes. 4. Sustainability and Ethical Practices: Sony expects to prioritize sustainability initiatives
  • 21. 1. High Barriers: Developing a brand reputation and securing licenses for content creation and distribution… 2. Technology and Innovation: Rapid technological innovation necessitates substantial R&D investment and expertise. New entrants would need time to develop comparable technologies, reducing the immediate threat to Sony’s market dominance… 3. Exit Factors: Competitors might leave the market due to financial challenges, failure to adapt to technological shifts, or inability to compete effectively. .
  • 22. Factors Affecting Supply Sony Entertainment maintains a diverse network of establishments, including offices, stores, and production facilities. The company’s headquarters are situated in Tokyo, Japan. Notably, Sony has a robust presence in the United States, with offices and production studios in locations such as Culver City, Los angeles, California (Sony Pictures Entertainment), and New York City (Sony Music Entertainment).
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  • 24. Bailey Schulz (July, 24th, 2023) Music for More? Spotify Raising Prices, Premium individual plan $10.99. https://www.usatoday.com/story/tech/2023/07/24/spotify-premium-price-increase/70456733007/ BMG (August 12th, 2023) Logo header.https://www.bmg.com/us/ BMG Entertainment INC (June 29th, 2023) Working at BMG Entertainment INC.https://www.musicbusinessworldwide.com/bmg-annual- revenues-jumped-30-6-to-over-900m-in-2022/#:~:text=News- ,BMG%20annual%20revenues%20jumped%2030.6%25%20to%20over%20%24900m%20in,%24400m%20on%20catalog%20acquisiti ons&text=BMG’s%20annual%20revenues%20hit,%2C%20year%2Don%2Dyear. https://www.zippia.com/bmg-entertainment-careers- 17011/ Damian Radcliffe (n.d., 2021) WNIP, COVID-19’s impact on the media, in 10 charts. https://whatsnewinpublishing.com/covid-19s-impact-on-the-media-in-10-charts-2/ Digital Music News (n.d.) Sony Twitter Jpg, Sony Music Group. Epic Records (April 27th, 2023) Sony Music Entertainment UK Relaunches Epic Records.https://www.sonymusic.com/epic/sme-uk- relaunches-epic-records/ Facebook (January 10th, 2022) Sony Music Russia, Logo. https://www.facebook.com/SonyMusicRussia/photos/a.469788043101782/4867480903332452/?type=3&paipv=0&eav=AfZeEBRk6ru- 4u5rMZy7YBGEneF4rLPOT5zjZbr3KHc8Lp7tDREHExqyoJlwrAb6rPs&_rdr Glass Door (n.d.) Sony Music, Logo.https://media.glassdoor.com/l/72/72/d2/4b/sony-music-hq.jpg https://www.digitalmusicnews.com/wp-content/uploads/2017/08/sony-twitter.jpg https://e7.pngegg.com/pngimages/591/65/png-clipart-sony-music-logo-logo-sony-music-nashville-sony-entertainment-network-sony- text-wordmark-thumbnail.png https://www.zippia.com/universal-music-group-careers-43031/revenue/
  • 25. J. Clement (August 9th, 2023) Statista, Digital download ratio of Sony PlayStation gaming software unit sales worldwide from fiscal 1st quarter 2019 to 1st quarter 2023. https://www.statista.com/statistics/1202234/global-playstation-game-unit-sales-digital-downloads/ Kevin Webb and Seven Cohen July 20 2023 https://www.businessinsider.com/guides/tech/where-to-buy-ps5 Ep. 2: SUPPLY & DANCE, MAN! | Jon M. Chu OLIGOPOLY (n.d. 2023) Cooperative strategy oligopoly market.https://www.linkedin.com/pulse/cooperative-strategy-create-oligopoly- market-raunak-saha/ Marie Charlotte Götting (June 16th, 2023) Sony Corportation: Music revenue source 2019-2023. https://www.statista.com/statistics/314357/sony-corporation-music-revenue- source/#:~:text=In%20the%20fiscal%20year%202023,1.5%20billion%20dollars%20that%20year. Music Business Worldwide (n.d. 2023) Sony Music Entertainment (SME or ‘Sony Music’) is the New York-based recorded music company fully owned by Japan’s Sony Corporation. https://www.musicbusinessworldwide.com/companies/sony/sony-music-group/sony-music-entertainment/ Sony Music Entertainment (August 13th, 2023) Sony Music Entertainment Mission Statement. https://www.zippia.com/sony-music-entertainment-careers-38802/mission-statement/ BMG Entertainment INC (June 29th, 2023) Working at BMG Entertainment INC.
  • 26. Qiao Li, David Wilson, Yanqui Guan (2020) The Global Film Market Transformation in the Post-Pandemic Era https://library.oapen.org/bitstream/handle/20.500.12657/62526/9781000902228.pdf? sequence=1#page=18 Sony Music, (n.d. 2023) Featured Artists https://www.sonymusic.com/artists/ Sarah Whitten (December 29th, 2020) CNBC, Statisa, this chart shows 202 had a chance to break box office records, but Covid caused lowest haul in decades. https://www.cnbc.com/2020/12/29/box-office-2020-sales-plummeted-80percent-the-lowest- haul-in-decades.html Sony Music (n.d.) png images, Sony music logo. Sony Music (April 18th, 2023) Sony Music Masterworks Acquires a Majority stake in spain-based live event producer and promoter, Proactiv-entertainment. https://www.sonymusic.com/masterworks/sony-music-masterworks-acquires-a- majority-stake-in-spain-based-live-event-producer-and-promoter-proactiv- entertainment/
  • 27. Sony Music (n.d. 2021) Sony Music Russia, https://scontent-lga3- 2.xx.fbcdn.net/v/t39.30808- 6/269949943_4815174708563072_8972623665261589586_n.jpg?_nc_cat=105&cb=99be 929b-59f725be&ccb=1- 7&_nc_sid=300f58&_nc_ohc=CRF2Bel9JzgAX_lVyh9&_nc_ht=scontent-lga3- 2.xx&oh=00_AfD3fzNyGrqHqPTIjKVWuoChh3RLa5bIALe6E2MhBMnqlA&oe=64DA999F Tim Ingham (March 30th, 2023) BMG annual revenues jumped 30.6% to over $900M in 2022, as it spent $400M on catalog acquisitions. Universal Music Group (August 12th, 2023) Logo Header. https://www.universalmusic.com/universal-music-group-expands-in-the-middle-east-and- north-africa/ We The Economy. (2014, October 21). SUPPLY AND DANCE MAN! | Jon M. Chu. [Video File]. https://www.youtube.com/watch?v=gDYvwUQ8e6w&list=PLTpcK80irdQhWpbm37oX1p5c XTd840q4i&index=2