Sony Music Entertainment and the Evolution of the Music Industry

Table of Contents
Table of Contents…………………………………………………………………………………............................2
Recommendations…………………………………………………………………………………………………………..3
Appendix 1………………………………………………………………………………………….…………………………. 5
Appendix 2………………………………………………………………………………………….…………………………. 11
Appendix 3…………………………………………………………………………………………………………………….. 13
Appendix 4………………………………………………………………………………………….…………………………. 15
Appendix 5………………………………………………………………………………………….…………………………. 16
Appendix 6………………………………………………………………………………………….…………………………. 17
Appendix 7………………………………………………………………………………………….…………………………. 17
Appendix 8………………………………………………………………………………………….…………………………. 18
Appendix 9………………………………………………………………………………………….…………………………. 20
Appendix 10……………………………………………………………………………………….…………………………..21
Appendix 11……………………………………………………………………………………….…………………………..21

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Recommendations

1. I recommend Sony continues to fight for market share in the digital media segment by investing in improvements to address the low, 3 star rating of its streaming service to allow it to compete with the large competitors, Spotify and Pandora.
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In 2014, The three main methods of digital music distribution included digital download, Internet radio, and interactive streaming. (Appendix 1)

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Sony’s operating income increased for the first time in 4 years due mainly to lowering costs and growth in digital revenue. As revenue from digital increases, Sony should invest in improvements of its streaming service to allow it to compete with the industry segment leaders. (Appendix 10)

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Internet and radio streaming are predicted to continue to grow. With many new cell phone users, Sony has the ability to capture new users for “Music
Unlimited.” (Appendix 7)

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Subscription services represent an opportunity for Sony because they are much