Sony Shuts Down In Oz
Sony’s local CD, DVD and Blu-ray subsidiary manufacturer has reportedly shut down its Western Sydney factory, ceasing over 25 years of operation amid today’s ‘streaming age’.
According to afr, SCA Music Holdings (Australia) post a $9.7 million loss for the year to March 31st. Revenues for the period notched $73.6 million.
Despite industry trends, the once former ‘cash cow’ has largely been financially beneficial for Sony – reportedly posting $4 million profit from $86.8 million revenue, for the year to March 31st 2017.
Japanese-based Sony has reportedly now outsourced its disc production to Technicolor and CCS Media Packaging.
Reports claim SCA has sold all auctioned off/sold all equipment at its 8,400 sqm factory, with affect to its 320 staff unclear.
The factory’s shutdown is yet another reflection of the music industry’s changing trajectory, following the rise of streaming giants such as Spotify and Apple Music.
In April 2016, SCA reportedly paid Sony Music Holdings Inc (USA) a $159.8 million dividend. It follows an agreement with the federal government in the early 90s, for the manufacturer of ~$180 million CDs by the end of the century.
Sony Music Entertainment Australia post sales of $119.3 million for the year to March 31st, however, significant sales and marketing expenditure dropped profit after tax to $605,000.