XML 24 R13.htm IDEA: XBRL DOCUMENT v3.25.0.1
Revenue Recognition
 3 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue
The Company’s revenue consists of the following categories, which aggregate into the segments – Recorded Music and Music Publishing:
Three Months Ended
December 31,
20242023
(in millions)
Revenue by Type
Digital$873 $908 
Physical166 154 
Total digital and physical
1,039 1,062 
Artist services and expanded-rights196 204 
Licensing110 179 
Total Recorded Music1,345 1,445 
Performance56 51 
Digital207 196 
Mechanical14 15 
Synchronization39 39 
Other7 3 
Total Music Publishing323 304 
Intersegment eliminations(2)(1)
Total revenues
$1,666 $1,748 
Revenue by geographical location
U.S. Recorded Music$532 $627 
U.S. Music Publishing173 172 
Total U.S.705 799 
International Recorded Music813 818 
International Music Publishing150 132 
Total international
963 950 
Intersegment eliminations(2)(1)
Total revenues
$1,666 $1,748 
Sales Returns and Uncollectible Accounts
Based on management’s analysis of sales returns, refund liabilities of $22 million and $20 million were established at December 31, 2024 and September 30, 2024, respectively.
Based on management’s analysis of estimated credit losses, reserves of $24 million and $26 million were established at December 31, 2024 and September 30, 2024, respectively.
Deferred Revenue
Deferred revenue increased by $244 million during the three months ended December 31, 2024 related to cash received from customers for fixed fees and minimum guarantees in advance of performance, including amounts recognized in the period. Revenues of $88 million were recognized during the three months ended December 31, 2024 related to the balance of deferred revenue at September 30, 2024. There were no other significant changes to deferred revenue during the reporting period.
Performance Obligations
For the three months ended December 31, 2024 and December 31, 2023, the Company recognized revenue of $40 million and $30 million, respectively, from performance obligations satisfied in previous periods.
Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at December 31, 2024 are as follows:
Rest of FY25
FY26
FY27
ThereafterTotal
(in millions)
Remaining performance obligations$329 $153 $5 $1 $488 
Total$329 $153 $5 $1 $488