Sales fall 27% as Sony's Irish arm records €230,000 loss

Illegal downloading of music contributed to sales decreasing by 27 per cent at the Irish arm of Sony last year pushing the firm into losses, the company says. New figures show that Sony Music Entertainment Ireland Ltd recorded a loss of €229,000 after the firm recorded a profit of €503,000 in 2011, a fall of €732,000.

The firm, which counts Christy Moore, the Kings of Leon and Beyoncé (above) among its artists, saw its revenues decline 26 per cent from €12 million to €8.6 million in the 12 months to the end of March 2012. The figures show that Sony Ireland’s revenues have more than halved in the space of three years from €17.3 million in 2010 to €8.6 million last year.

The directors’ report says the decline in physical recorded sales poses a risk to the company. It says: “Increased competition in the entertainment sector, illegal downloading, physical piracy and downward price pressure on recorded music has led to this decline.

“Increased internet access has led to more access to illegal organised file-sharing networks.”

Accumulated profits stood at €7 million last year with shareholder funds totalling €19.1 million.