The Mortal Instruments, Sony Pictures

Sony has shuffled the worldwide Marketing President at Sony Pictures presumably in response to some summer flick disappointments and investor criticism. Marc Weinstock has held the position since 2000 but was taken out of the post this week, though he is expected to remain on at the company. He has now been replaced by Dwight Caines who moves up from digital marketing. Is Sony Pictures getting hot-under-the-collar after the investor spotlight from Daniel Loeb?

You may remember an earlier report of Sony’s largest investor, Daniel Loeb calling for a spin off of the movie division Sony Pictures. What started out as a very publicised proposal on Sony’s future, instead became a fiasco as Hollywood’s George Clooney shot back at claims that the Pictures division was bleeding money and represented poor value for the corporation. Clooney aired his anger for the money-pinching climate developing in Sony Pictures as a result of the spotlight on profitability. Investor Loeb presented Sony with the request of considering the Pictures spin-off which, was later rejected unanimously by the board.

New Worldwide Marketing President Dwight Caines

Sony Pictures is trailing in the major studios’ profits this year, after ending 2012 on top. Despite the change in worldwide marketing chief, the spotlight is unlikely to be taken away from the Pictures division as the board of management and investors watch closely for better results in the last quarter of the year. A feature of movie success that clouds profitability is the increasingly common case of a movie performing poorly domestically but very well internationally. Films in this category include Sony’s The Mortal Instruments, White House Down and After Earth.

While Clooney presented an admirable defense from within the film industry, highlighting distinct financial successes in movies such as Skyfall, Django Unchained, or Zero Dark Thirty, when the largest investor in a company takes aim like that, the board of management and more visibly the CEO can’t afford the luxury of appearing dismissive or disinterested. The replacement of the worldwide marketing chief seems to follow as a result. A replacement of a chief being a standard shuffle in corporations as an attempt to be seen to be listening to criticism and as very involved in financial details in each division. It’s more than just appearances however, as Sony has proven itself genuinely vigilant in combatting any money leaks in the giant corporation in what is turning out to be a critical year for the Japanese firm.

Discuss:

Did Sony Pictures need a President shuffle?