×
You will be redirected back to your article in seconds

Sony Forecasts Drop in Midterm Profits but Boost for Pictures Division

Unveiling his first midterm strategy for electronics giant Sony, new CEO Kenichiro Yoshida took a conservative view Tuesday of the company’s overall profit picture but said he expects the film division’s profits to rise by up to 62% in three years.

By March 2021, Sony expects to achieve an operating profit of $1.2 billion to $1.5 billion, compared to a forecast of $1.7 billion for the current fiscal year, Yoshida said in Tokyo. One reason for the drop is shrinking profit for game consoles and other consumer hardware, which remain a core business for Sony despite drastic cutbacks to TV and other production under former CEO Kaz Hirai. Competition from China and other low-cost producers will force Sony to continue seeking other profit centers.

The outlook for Sony’s movie business is brighter, with a projected operating profit of $522 million to $612 million by the end of three years, in contrast to the $378 billion predicted for FY2018.

Yoshida, who was formerly CFO before taking over the top job April 1, stressed the importance of IP for Sony’s future. “Our vision of moving people’s emotions is unchanged,” he told reporters. “Our message this time is to pursue that further.”

Underlining that emphasis, Sony also announced the purchase of EMI’s music catalog for about $2 billion. This follows a recent Sony deal to acquire a major stake in Peanuts Holdings, the company managing Snoopy, Charlie Brown and other creations of cartoonist Charles M. Schulz.

Sony’s basic strategy for its Pictures division “is to strengthen and leverage Sony’s IP while also expanding the Media Networks business, particularly in India,” the company said in a statement. Sony currently owns 31 TV channels in India, the world’s second-most populous country. “This business is set to be a major asset to the company going forward,” the statement said.

At Sony Pictures Entertainment, the company will continue to pursue its strategy, implemented during Hirai’s tenure, of maximizing its library and other IP assets. One example cited was “”Jumanji: Welcome to the Jungle,” the 2017 hit sequel to the 1995 action-adventure smash “Jumanji.”

Popular on Variety

More Biz

  • Homecoming

    Peak Storytelling Here as Podcasts, Short Form Ride New Wave

    The concept of peak TV is nothing new. But scratch the surface of original content these days, and it’s no longer about television — from podcasts and short-form video, storytelling itself is at a peak. Thanks to audio, video and other new platform companies including Gimlet, Quibi, Wondery, iHeartMedia and Serial Box, listeners and viewers [...]

  • Patti Smith Cambridge Folk Festival

    Patti Smith Muses Over the Many Ways to Tell a Story

    It’s Sept. 11, and Patti Smith has been thinking a lot about people who died. This is understandable. It is, of course, the 18th anniversary of the attacks on the World Trade Center and Pentagon, and an annual time of mourning for New York City, the city that Smith adopted as her hometown 50-plus years [...]

  • Hopper Reserve

    Dennis Hopper's Dying Wish: His Own Strain of Marijuana

    Even as celebrity brands are starting to flood the emerging Cannabis market, Hopper Reserve stands out. The brand was launched by Marin Hopper, Dennis Hopper’s daughter from his marriage to Brooke Hayward. Hopper Reserve is a gram of California indoor-grown flower, two packs of rolling papers, a pair of matches and a trading card either [...]

  • Snoop Dogg Weed

    In the Cannabis Business, Not All Star Strains Are Created Equal

    With the cannabis green rush in full swing, many celebrities are jumping into the fray with their own brands, including such well-known stoners as Willie Nelson, Snoop Dogg and Tommy Chong. But as it turns out, not all star strains are created equal, so we assembled a trio of crack experts to put the product [...]

  • Richard Branson Jason Felts

    Kaaboo Festival Acquired by Virgin Fest Owner Jason Felts

    Kaaboo, which says it has “shifted the music festival paradigm by offering a highly amenitized festival experience for adults,” is now under new ownership. Virgin Fest founder and CEO Jason Felts (pictured above with Virgin founder Richard Branson) has fully acquired all of the festival brand assets through an affiliate of Virgin Fest, the music [...]

  • Live Nation Chief Michael Rapino Talks

    Live Nation-Ticketmaster Chief Michael Rapino Talks Dept. of Justice Inquiries

    Back in August, Senators Richard Blumenthal of New Jersey and Amy Klobuchar of Minnesota made the most recent of several requests for an Department of Justice antitrust investigation into competition in the ticketing industry, and it soon became clear that the target of the probe was Live Nation and its 2010 merger with Ticketmaster, which [...]

  • Lowell Smokes Cafe Marijuana

    With Cannabis Lounges, On-Site Consumption, Marijuana-Infused Meals Go Legit

    Can this century’s Roaring ’20s repeat history but with pre-rolled joints instead of whiskey flasks and soccer moms as the new flappers? This month, West Hollywood will see the opening of the nation’s first at least quasi-legal cannabis consumption lounge, officially dubbed Lowell Farms: A Cannabis Café, located at 1211 N. La Brea between Fountain [...]

More From Our Brands

Access exclusive content