Sony Sees Growth Potential in Channels Business, Franchises

TOKYO: At its corporate strategy meeting today, Sony Corporation identified the key growth opportunities for its entertainment business, including focusing on feature-film franchises and ramping up its channels business, particularly in high-growth markets like India.

In a Q&A session with analysts following the presentation, Sony Corporation’s chief executive, Kazuo Hirai, confirmed that the board is considering a proposal from hedge fund Third Point—one of the company’s key investors—to spin off its Sony Pictures Entertainment business. The division had a strong Q4 2012, with revenues up 11 percent to $7.8 billion and an operating profit of $509 million, a 40-percent gain. While the company as a whole returned to a profit in the quarter, its electronic businesses have struggled.

At its entertainment business, the priority going forward will be on "motion picture titles with high profit potential," the company said in a statement, "including globally popular franchises." It is also looking to expand its TV production and channel businesses, "which are areas where continued growth is anticipated, as stable sources of profit. In the television network business, the company will target further business expansion in rapidly growing markets such as India." Sony recently increased its stake in its Indian channels business Multi Screen Media—which operates the popular Hindi-language general-entertainment SET network, among other platforms—to 94.39 percent.