Sony BMG posted losses of $57 million during the recent, fiscal second quarter, a plunge from a previous-year dip of $8 million.
Overall revenues at the label group dropped 11 percent to $762 million for the period ending September 30th. In a quarterly earnings call from now-parent Sony Corp., the drop was blamed on “the continued decline in the worldwide physical music market,” one that is “not being offset by growth in digital product sales” and other initiatives. Restructuring costs for the period totaled $4 million.
Moving forward, the label group will become wholly owned by Sony Corp., and bear the name Sony Music Entertainment. The recent buyout gave partner Bertelsmann an exit from the beleaguered recording business and a troubled joint venture.
Meanwhile, other majors are suffering. Earlier this week, EMI Group posted gargantuan losses of 757 million pounds ($1.2 billion) for the year ending March 31st. Elsewhere, Warner Music Group is now suffering on Wall Street, though its quarterly report comes November 25th. Warner recently sold its stake in Front Line Management to Ticketmaster for $123 million.