Sony reported results for the final quarter of its fiscal year, which ended on March 31st. Overall income in the 12 months fell by 10%, another example of the impact of last year’s extended labor strikes by Hollywood’s writers and actors.
The studio was forced to move important titles out of their 2023 fiscal calendar, including KRAVEN THE HUNTER, BAD BOYS: RIDE OR DIE, and SPIDER-MAN: BEYOND THE SPIDER-VERSE. There were some bright spots in the year, such as SPIDER-MAN: ACROSS THE SPIDER-VERSE, ANYONE BUT YOU, and THE EQUALIZER 3.
Losses in Sony’s theatrical division were somewhat offset by gains from Sony’s anime streaming platform Crunchyroll. Sony is the only major studio without its own branded streaming platform, choosing instead to license its films and series for distribution across other streaming platforms.
However, it has staked out a niche in the streaming landscape with Crunchyroll, a service focused on anime content exclusively. By focusing on a passionate audience of anime fanatics, Crunchyroll has become a profitable and growing asset.
Sony was also in the news this week with reports that it is “rethinking” its $26 billion bid to buy Paramount Studios with private equity giant Apollo Management. This hesitation comes after taking a closer look at the status of Paramount’s declining cable assets and unprofitable Paramount+ streaming platform.
On the one hand, it may not be wise to transform itself from a financially profitable, albeit smaller, movie studio into a gigantic media conglomerate saddled with mountains of debt and high-profile, unprofitable divisions. On the other hand, the economies of scale are intriguing, especially if the industry can rebound to emerge into a profitable cycle of growth and profits.
