Sony Posts Losses Of $1 Billion Dollars Due To Dwindling DVD And Movie Ticket Sales

February 7. 2017

Sony, the company accused of killing the world's top recording artist, Michael Jackson, has posted $1 billion in a write down losses for 2016. Sony cites a massive decline in DVD and movie ticket sales, also known as financial losses. Sony's music sales are also on the decline. Sony is the strangest and greediest company in the entertainment industry.

Phony, I mean, Sony

The public got a glimpse of said greed, when top Sony music star, Michael Jackson, was murdered via a deliberate pharmaceutical drug overdose for posthumous sales and more lucratively, the takeover of the Sony Music publishing catalog he co-owned with the unscrupulous company. Once the coast was clear, Sony was inexplicable able to buy Jackson's portion of the catalog for billions of dollars less than it's actual value (Michael Jackson's Music Catalog Being Sold To Sony For A Fraction Of Its Value Is Very Suspect). Sony is a killer company...literally.

Howard Stringer looking like satan

Former Sony chief, Howard Stringer and his brother, Rob Stringer, committed a laundry list of crimes at the company that has firmly set the corporation on its way to financial disaster. The Intercept website wrote, "In a memo to employees, Sony Corp. CEO Kazuo Hirai and Lynton, who will stay with the company for a few months to help with the leadership transition, said the write-down was primarily due to the dramatic downturn in the DVD business. The company lowered its outlook for film profits through 2020, citing declines in DVD and other home entertainment operations."

STORY SOURCE

Sony Pictures gets a $1-billion 'wake-up call' amid a slump at the box office and in DVD sales

The disclosure comes weeks after Sony Pictures Entertainment announced Chief Executive Michael Lynton will step down from a job he has held for 13 years.

Sony Corp.’s decision to take a nearly $1-billion write-down on its movie business is an extraordinary step for a major Hollywood player that highlights the deepening financial challenges facing the nearly century-old Culver City studio. The Tokyo-based tech and entertainment giant said Monday that it decided to take the impairment charge after evaluating the future profitability of the movie business, which has lagged its competitors in recent years as it tried to recover from a massive 2014 cyberattack. The non-cash charge will be recorded as an operating loss during the company’s fiscal third quarter that ended in December.

The disclosure comes just two weeks after the company said Sony Pictures Entertainment Chief Executive Michael Lynton will step down from a job he has held for 13 years. Executives at the Tokyo parent company had become increasingly frustrated with the performance of the studio under Lynton, who also ran the TV and music businesses. Sony in November reduced its full year profit forecast for the film and TV studio by 23% to about $250 million.

Although studios occasionally announce write-downs for individual films that bomb, as Viacom did for “Monster Trucks” last year ($115 million) and Disney did for “The Lone Ranger” in 2013 ($190 million), it’s rare for a media conglomerate to declare an impairment charge for an entire studio.

“This is a wake-up call,” said Peter Sealey, a Sausalito, Calif., business and marketing consultant. “Studios have said ‘we’ve made a mistake’ on a particular film, but this is a mistake on a whole strategy.” Investors reacted negatively to the write-down, which was announced before Sony reports earnings Thursday. Sony’s shares, which trade in the U.S. as American depository receipts, fell 3.5% to $29.44 a share on Wall Street.

In a memo to employees, Sony Corp. CEO Kazuo Hirai and Lynton, who will stay with the company for a few months to help with the leadership transition, said the write-down was primarily due to the dramatic downturn in the DVD business. The company lowered its outlook for film profits through 2020, citing declines in DVD and other home entertainment operations...

https://theintercept.com

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