Sony contemplating merger of US music divisions

Reports from the New York Post suggest that Sony’s global music companies, Sony Music Group and Sony/ATV, could unite as part of a restructure to its US operations.

The revamp involves plans to place its movie and television division, Sony Pictures Entertainment, under its more profitable gaming division, Sony Interactive Entertainment. Sony’s gaming sector has produced US$6.4 billion in revenue in the six months ending September 30, while also producing US$624 million in profit for the Japanese-based electronics company.

The move has significant implications for the company’s music divisions. Providing the revamp goes ahead, recorded music arm Sony Music Group and music publisher Sony/ATV would unite, the report states, seeing a separate consolidated music unit established, independent of the film and gaming division.

Currently, Sony Music and Sony/ATV operate more autonomously than the equivalent divisions at Warner and Universal in the US, the other two major labels. This is partly due to the fact that, until early this year, Sony/ATV was a joint venture between Sony Corp and the Michael Jackson estate.

While Sony Pictures Entertainment holds a motion picture studio, a global cable TV division and a TV production company, It also owns Sony Music Group and Sony/ATV.

Although no confirmation of the restructure has been announced, Sony is likely to make a final decision on the reported revamp by March 31, the end of its fiscal year.