Sony is a big company with many, many arms past its mobile phone division. It also makes Sony games, Sony TVs, Sony cameras and Sony movies. However the latter of these is set to shrink down moving forward, in order to keep it alive.
CEO Kaz Hirai has come under fire for keeping hold of the movie division during the company’s excessive restructuring. In fact, while Hirai has managed to bring some sectors of the company back into profitability, the movie division has been struggling. This summer alone White House Down and The Smurfs 2 failed to make much of an impression at the box office.
As a result, the company is to cut $250 million from its entertainment budget. The number of releases will also shrink from 23 per year to 18. It’s thought that a further $100 million could be further cut. Ironically enough it’s a bid to save the arm instead of all-out selling it.
Still, we’re expecting big things from Sony movies going forward. Next year sees the release of The Amazing Spider-Man 2, a film which the company has been pushing ever since the release of the original. Sony even uses some of its bigger movies such as Skyfall (which it distributed) for product placement for phones like the Xperia T.
Source: Bloomberg