Sony’s Film Division Takes $1B Hit
Sony’s share price has taken a beating after the company filed a $962 million writedown for its film division, blaming changes in the nature of the entertainment business.
They say that the shift in the tastes of consumers towards streaming services like Netflix, the long-term decline of DVD sales, the long-term decline of cinema-attendance, the disappearance of the 3D TV market and the ballooning costs of actually producing TV and film prompted the write-down.
With the move reigniting rumours that the company is prepping the studio for a sale, Sony has insisted that Sony Pictures Entertainment is “a very important part of Sony group” and that they “will continue to invest to achieve long-term growth and increased profits in this space.”
The writedown does come at a precarious time for the company, which is set to lose CEO MIchael Lyndon to tech startup Snap (creators of Snapchat) in the near future.
It’s unknown at this time who will replace Lyndon, though Playstation Interactive’s Andy House has been mentioned as a potential successor.