Sony Takes Nearly $1 Billion Write-Down on Movie Business


TOKYO: Sony Corporation has reported a 112.1 billion yen ($982 million) impairment charge on the goodwill value of its movie segment in the quarter ended December 31, 2016.

The impairment charge resulted from a downward revision in the future profitability projection for its movie business, as Sony lowers its expectations regarding home entertainment. The company cited a faster-than-expected decline in the DVD and Blu-ray market. Sony also said that a majority of the goodwill that was impaired was originally recorded at the time of the acquisition of Columbia Pictures Entertainment in 1989.

Profit in the pictures segment overall is expected to grow, as measures are currently being undertaken to improve the profitability of the motion pictures business and further expand the television productions and media networks businesses.

The company also said that the pictures segment “continues to be an important business of Sony.”