SonyÕs billion dollar studio writedown

SonyÕs $1 billion writedown on its movie business was prompted by falling DVD/Blu-ray sales and a number of costly box office flops

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RECENT MOVIE MISFIRES

Billy LynnÕs Long Halftime Walk (2016)

Worldwide gross: $31m

Budget: $40m

Ghostbusters (2016)


Worldwide gross: $229m

Budget: $144m

Sony loss: $75m (after marketing and publicity costs)

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HOME ENTERTAINMENT SPENDING (U.S.)

$12 billion
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2010 11 12 13 14 15 16

DVD/Blu-ray

Streaming services

$6.07 billion (up 22.60% on 2015)

$5.49 billion (down 9.55% on 2015)

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Blu-ray: Developed by Sony and released in 2006 to supersede DVD format. Offers greater storage capacity for showing movies at higher definitions

2016: DVD and Blu-ray disc sales eclipsed by subscription streaming numbers for first time

Popular U.S. streaming services

Disc revenues being cannibalised by subscription streaming services which provide much lower profit margins to studios than physical media sales

Feb 2, 2017: Sony Pictures Entertainment CEO Michael Lynton steps down after for 13 years

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Sources: DEG, Variety, LA Times, Box Office Mojo 

Picture: Sony Pictures 

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