Sony doubles down on entertainment
Published May 25, 2023, 9:20 a.m. by Naomi Charles
In a move that signals its commitment to the entertainment business, sony Corp said on Tuesday it would double its investment in content production and double the number of movies it produces each year.
The move comes as the Japanese conglomerate looks to bolster its flagging fortunes by focusing on areas where it has a competitive edge, such as gaming, music and movies.
It also comes as the company faces increasing pressure from activist investors to boost shareholder returns.
In a presentation to investors, sony said it would increase its annual investment in content production to more than 1 trillion yen ($9.1 billion) by the year ending March 2023.
It also said it would produce 50 movies a year, up from the current 20, and that it would invest more in marketing to promote its films globally.
The company did not give a specific figure for the increase in content investment.
sony's movie business has been a bright spot for the company in recent years, thanks to hits such as "Spider-Man: Homecoming" and "Jumanji: Welcome to the Jungle".
However, the business has been hit by a string of box office flops in the past year, including "The Emoji Movie" and "Flatliners".
In order to turn things around, sony is banking on its relationship with Marvel Studios, which is owned by Walt Disney Co, to produce hits such as this year's "Spider-Man: Homecoming" sequel.
The company is also hoping that its upcoming slate of movies, which includes a new "Men in Black" installment and a live-action "Charlie's Angels" reboot, will be box office successes.
With its increased investment in content, sony is also looking to bolster its presence in the streaming market.
The company said it would launch a new online video service in the United States later this year.
The service, which will be called PlayStation Vue, will offer live and on-demand programming from a variety of networks, including CBS, NBC and Fox.
sony is also planning to launch a similar service in Japan.
In addition to its focus on content, sony is also looking to boost its profitability by selling off some of its non-core businesses.
The company said on Tuesday that it was in talks to sell its camera business to a consortium led by Japan Industrial Partners.
sony said it was also considering selling its Vaio personal computer business and its imaging sensors business.
The company did not give a timeframe for the possible sale of these businesses.
You may also like to read about:
Sony expects to sell 25 million
PlayStation consoles this year that
would be a record for any generation of
the device the gains are expected as
supply chain problems ease off
but a strategy update Thursday saw less
focus on Hardware financial services and
entertainment content where the subject
instead chief executive kenichiro
Yoshida has been watching rival Nintendo
literally come on Mario he said he'd
recently seen its Super Mario Brothers
movie which has been a box office smash
Yoshida said that was Testament to the
value of creating lovable characters and
said Sony would invest in similar
content to drive growth the company
wants to boost Synergy between Games
music and movies
it cited the success of its hit TV drama
The Last of Us which helped Drive sales
of the associated game
Sony may also spin off some of its
Financial Services Unit which includes
life insurance and banking that could
come in two to three years with any
Capital raised likely used to boost
growth sectors including entertainment
and image sensors
and let's say the move will make Sony
more of a pure play Entertainment
Company though the firm will retain a
stake in the financial unit
