Sony is doubling down on a push into gaming by embedding its music technology across the sector following a string of acquisitions it hopes will boost fan engagement and open new revenue streams for both the company and its artists.
During its Immersive Tech Day in London on Tuesday, the digital entertainment giant showcased how it has been working to synchronise the worlds of music and gaming, a space it sees as ripe for growth.
Sony revealed it has snapped up two fan engagement-focused apps called Songwhip, a marketing tool for artists, and Fansifter, which provides data-driven insights into fan behaviour.
The company also teased a virtual concert by British singer-songwriter Myles Smith, which is set to premiere on Fortnite later this month. The performance is the result of a collaboration between Sony Music and Smith’s label, RCA UK.
This concert is not a “one-off,” according to Brad Spahr, senior vice president of Sony Immersive Music Studios. Instead, it’s part of a wider strategy to create ‘music-driven play’, where games are designed around music rather than the reverse.
While the revenue model for in-game performances is still developing, for now, such performances are focused on fan engagement and marketing rather than direct sales.
However, Dennis Kooker, president of global digital business at Sony Music Entertainment, said that the virtual space will eventually become “more commercial over time,” with marketing and monetisation increasingly intertwined as research and development progresses.
He added that Sony’s testing in this type of entertainment also comes as music and gaming rank as the top two entertainment choices for under-25s.
The company’s belief that it will continue has driven a prolific spending spree, investing heavily in tech companies and music catalogues, including the $400m (£308m) purchase of Pink Floyd’s back catalogue earlier in October.
Since 2015, Sony has spent over $6bn (£4.6bn) on mergers and acquisitions, according to Music Business Worldwide.
Rob Stringer, CEO of Sony Music Entertainment, said earlier this year: “Through targeted investments, we believe catalog is the base of our strategy to navigate a successful path to all future tech trends in the music space.”
Along with the recorded music rights, Sony is also acquiring name and likeness rights for iconic artists like Pink Floyd. This gives the company the intellectual property to produce more videos and virtual performances, something it believes is key to attracting new audiences, including those who may not be under 25.
It is these revenue-generating catalogues that are enabling Sony to fund its expansion into the immersive music tech space.