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[28] Sony Corporation Annual Report 1998
[ Music ]
Message From Top Management
Sony Music Entertainment Inc. (SMEI) achieved its most successful year in history with record high
results. As we begin our new year we are well positioned to build upon this achievement. Our mission,
based upon a passionate commitment to long-term artist development, mandates continued invest-
ment in new and established talent in order to compete aggressively and establish each of our
companies around the world as the market leader. I firmly believe the outlook for SMEI has never
been brighter. We are committed to building upon our successes and continuing with the creative
spirit that is fundamental to our sustained growth.
Sony Music Entertainment Inc. (SMEI)
Celine Dion’s Let’s Talk About Love and the Titanic soundtrack each sold more than 19 million units, and were
the top-two selling albums in the world. Mariah Carey’s Butterfly (8 million units) and Oasis’ Be Here Now (7
million units) enjoyed global success, followed by Barbra Streisand’s Higher Ground, Celine Dion’s Falling
Into You, Savage Garden, and the Men in Black soundtrack (over 4 million units each). Other multimillion-
selling releases included albums by Fiona Apple, Bone Thugs-N-Harmony, Michael Jackson, Jamiroquai,
Ricky Martin, Pearl Jam, Will Smith, Wham!, and the soundtrack from My Best Friend’s Wedding.
Artist and Business Development
Debut and developing artists selling more than 500,000 units during the year under review included Savage
Garden (Australia); Meja, Monica Naranjo, Jimmy Ray, Finley Quaye, and Wes (Europe); Alejandro Fernandez
(Mexico); and Fiona Apple, Ben Folds Five, Ginuwine, Amanda Marshall, Maxwell, and Uncle Sam (North America).
SMEI pioneered new online technologies and forged several relationships with key Internet service providers,
and Sony Music Nashville re-established the Monument label.
International Growth
Sony Music International (SMI) increased sales throughout its territories with global bestsellers and local
repertoire hit albums by Chang-Jung Im, Nakarin Kingsak, CoCo Lee, AR Rahman (Asia); Amanda Marshall
and Our Lady Peace (Canada); Claudio Baglioni, Jean-Jacques Goldman, the Kuschelrock 11 compilation,
Monica Naranjo, Meja, Jimmy Ray, Finley Quaye, Magnus Uggla, and Wes (Europe); and ZeZe de Camargo y
Luciano, Alejandro Fernandez, and Ricky Martin (Latin America). SMI expanded its roster throughout Asia
with a cooperative arrangement in China to develop a Chinese-language repertoire and new signings
including Cantopop star Leon Lai and Taiwanese superstar Jeff Chang. SMI also extended its European
network of label affiliations with several strategic investments.
Classical Movements
Sony Classical enjoyed phenomenal success with the Titanic soundtrack. Other bestsellers included al-
bums by Michael Bolton, Yo-Yo Ma, Itzhak Perlman, and Christmas from Vienna IV. New signings included
Titanic composer James Horner, tenor Marcelo Alvarez, violinist Eileen Ivers, baritone Jubilant Sykes, and
composer/performer Joe Jackson.
Music Publishing
Sony/ATV Music Publishing achieved strong results and earned BMI Publisher of the Year and ASCAP Song
of the Year Awards. Agreements were signed with Joni Mitchell, LL Cool J, Miramax Films, October Films
and Experience Hendrix.
Sony Music Entertainment (Japan) Inc. (SMEJ)
During the year, SMEJ reviewed its management decision-making processes and reformed its internal organizations
primarily in the production and promotion divisions. These steps are aimed at constructing a new system for artist
development. In addition, SMEJ took measures to restructure the marketing system. The measures include reinforcing
its relationship with leading artists and accepting sales operations on consignment. Furthermore, SMEJ carved out new
businesses during the year by establishing a company to operate a broadcast programming business through digital
satellite broadcasting, and a concert venue management company. Despite deceleration in growth in the music market
in Japan, SMEJ achieved favorable results thanks largely to overall sales expansion from hits in Japan and highly
profitable greatest-hits albums. Hit artists who contributed to the sales expansion include L’Arc~en~Ciel, DREAMS COME
TRUE, and T.M. Revolution.
Thomas D. Mottola
President and Chief Executive Officer
Sony Music Entertainment Inc.
Review of Operations