Sony to End Sponsorship Deal With FIFA

Sony_FIFA_Sponsorship

When losses continue to mount up like they have in Sony’s case which will see their mobile division lose $1.7 billion for FY 2014 ending in March, all options are on the table when it comes to saving money. One such method would be to cut product lines down to provide more focused divisions and Sony is doing just that. Just last week, Sony revealed that come 2015, the company would focus less on televisions and mobile by cutting down the number of devices they make and focus more on PlayStation which has been a source of extreme growth.

Another way Sony hopes to save money is by cutting unnecessary or less-than-fruitful partnerships which is why they will be cutting their sponsorship deal with FIFA.

According to Hiroki Totoki, Sony’s newly-appointed mobile division chief, at a recent investors meeting, Sony plans to end its sponsorship deal with FIFA which will help the company save $280 million. In the last several years, Sony has enjoyed close ties with FIFA; Sony’s name is plastered during matches and the ever-important World Cup, for instance. With Sony looking to save money where it can, it’s likely come to their attention that the $280 million can be better spent elsewhere.

I’m personally unsure how effective, if at all, such marketing is versus advertisements like television ads which can be far more captivating than a company logo appearing on the side of the field. Hopefully Sony takes this as an opportunity to reinvent and better market their products than just blanked sponsorship deals and not as a further retreat from advertising. Sony has traditionally struggled with marketing which either has been nonexistent or extremely confusing with a lack of clarity on what it’s trying to pitch.

In the last few weeks, Sony has run two new advertisements dubbed ‘Roof‘ and ‘Script to Screen.

Discuss:

Do you think Sony is doing the right thing by cutting their sponsorship deal with FIFA?

[Via Reuters]