Sony 2004 Annual Report Download - page 51

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MUSIC BUSINESS
video downloads. In addition to generating
revenues for Sony, these services provide distribu-
tion opportunities for artists along with greater
convenience and flexibility for consumers.
Moreover, Sony’s entertainment companies
are positioning themselves for the next genera-
tion of media distribution and content creation.
For example, SPE’s home entertainment group
plans to distribute its movies in the Blu-ray Disc
format for storing high definition movies and
other digital content. Similarly, we are looking
forward to expanding the consumer experience
and generating additional revenues through
the distribution of content in the new UMD
optical disc format for Sony’s new handheld
video game system PSP which will play games,
music and video.
A transformation is under way, driven
by talent development and distribu-
tion on emerging new platforms
Under the direction of Chairman and CEO
Andrew Lack, SMEI returned to profitability in
the fiscal year ended March 31, 2004, realizing
the benefits from worldwide restructuring
activities that included the streamlining of
manufacturing, distribution and support
functions and the consolidation of label
services. At the same time, SMEI is currently
investing resources to further cultivate U.S.
and worldwide talent development.
In addition, in December 2003 Sony and
Bertelsmann AG entered into a binding
agreement to combine their recorded music
businesses in a joint venture. The newly
formed company, to be known as Sony BMG,
will be 50% owned by each parent company.
Sony BMG will combine the recorded music
businesses of BMG and Sony Music Entertain-
ment (but not the parent companies’ businesses
in music publishing, physical distribution and
manufacturing, or Sony Music Entertainment
Japan Inc. (SMEJ)). The merger is expected to
close in summer 2004, following receipt of
regulatory approvals in the United States and
the European Union.
Currently, Sony’s music business continues to
succeed on a global scale, supported by top
2003 releases such as Dangerously In Love by
Beyoncé; Fallen by Evanescence; In This Skin
by Jessica Simpson; and Heavier Things by
John Mayer. Some other notable current and
upcoming releases contributing to SMEI’s
momentum include titles by Prince, George
Michael, Destiny’s Child, Good Charlotte,
Jennifer Lopez, System of a Down and Shakira.
SMEI is continuing to focus its resources on
developing U.S. and worldwide talent. One of
the primary efforts in this ongoing project is
the newly established Sony Urban Music,
which is exclusively dedicated to nurturing
Beyoncé
Beyoncé’s multi-platinum debut
solo album,
Dangerously In Love ,
earned five 2004 Grammy
Awards, the most Grammys won
in a single year by a female artist,
including Best Contemporary R&B
Album and Best R&B Song for
“Crazy In Love.”
Delta Goodrem
“Born To Try,” the first single from
Delta Goodrem’s debut album,
Innocent Eyes , went to number
one in Australia and New Zealand.
The second single, “Lost Without
You,” debuted at number one in
Australia. Innocent Eyes entered the
Australian charts at number one
and spent 29 weeks there, spawn-
ing five number one singles.
Prince
Celebrating the 20th anniversary
of
Purple Rain , Prince recaptured
the public’s acclaim with a spec-
tacular performance at the 2004
Grammy Awards, his induction
into the Rock and Roll Hall of
Fame, and a historic world tour.
PornoGraffitti
This group’s popularity is rooted in
its ability to combine pop melodies
with rich vocals. Live performances
never fail to draw enthusiastic fans.
On July 28, 2004, PornoGraffitti will
release its first double-album of
best hits.
Crystal Kay
Crystal Kay is a captivating artist who,
after debuting at age 13, is now in
her fifth year of performing. Known
for her dedication and sincerity,
Crystal has an unforgettable voice.
On June 30, 2004, SMEJ released
CK5 , an album composed mainly of
songs that commemorate the fifth
anniversary of Crystal’s debut.
Sony’s entertainment companies are proud
to be playing such an important role in
shaping the future of digital entertainment
for consumers. We are continuing to create
personalized entertainment experiences that
can be enjoyed anywhere at anytime –
offering consumers choice, innovation,
flexibility and control.
Home Electronics Mobile Electronics Game Entertainment Financial Services Other
John Mayer
John Mayer’s second album,
Heavier Things , debuted at number
one on Billboard’s Top 200 Albums
chart and has sold more than two
million units since its release in
September 2003.