Entertainment

Sony Q1 2016 Earnings – Gaming & Media Up, Electronics Flat, and Components Down

(As always, keep in mind that these charts are fairly wide and created in very high resolution so simply click on them to enlarge)

The more I look at Sony’s Q4 FY15 earnings report which comprises of how they did in Q1 2016, the more hopeful and cautious I am of the company. In short, I find the direction Kaz Hirai is pursuing to be the correct one for Sony at the time. The question which remains is if Sony can execute his vision at a quick enough pace and transition to the next phase which is being a more lean and robust company with hopefully better selling devices on the market. That is outside of PlayStation which continues to do gangbuster numbers. Otherwise for Sony, it’s a tale of lower sales but higher profits, thanks to their more premium lineup which offers better margins.

If you look at the above chart, you’ll notice that excluding entertainment endeavors which in my mind comprises of PlayStation, Sony Pictures, and Sony Music, most of Sony’s electronic businesses were down compared to a year ago’s quarter. I’ve already discussed in length what’s been happening at Sony Mobile which you can read about here. However as the chart below shows, despite a drop in sales, Sony’s prospects on each division is improving, including their troubled mobile division. In fact Sony has posted a 666.5% rise in pretax profit for its full fiscal year.

Across nearly all core electronics business, Sony has seen a rise in operating income, even if they’re still posting negative numbers. The reason Financial Services dipped is mostly due to stock market volatility which has been in full affect the entire year. As Sony put it:

 Increases in the amortization of deferred insurance acquisition costs and the provision of policy reserves, primarily driven by a significant decrease in interest rates and the deterioration in the stock market 

For comparison, Apple each quarter has ‘lost’ more money due to currency volatility than companies like Facebook actually make. Context is king, right? Otherwise, as I said earlier, it seems like most of Sony’s businesses are humming right along the path set out by Kaz. However, let’s not forget about the elephant in the room – that division right in the middle – Devices. As you can see, compared to a year ago’s quarter, Devices is down ¥75.3 billion. It’s as if that division fell off of a cliff. For those unaware, Devices comprises mostly of Sony’s semiconductor business which supplies companies like Apple and Samsung things like batteries and camera sensors. According to Sony, the large negative number is in part due to:

Deterioration in the operating results of the camera module business

Deterioration in the operating results of the battery business

Increases in depreciation and amortization expenses as well as in research and development expenses

I’ve heard from a little birdie that Sony may have lost a major customer which could lend credence to the dramatic drop. Otherwise it’s hard to equate their reasonings and that number but for now, all we have is Sony’s vague statement on the matter. For those wondering what percentage of the company each division of Sony comprises, wonder no more with the chart below.

Way more details on each division from the Sony Q1 2016 earnings report after the jump.

Sony and Montclair State University Bring Touch of Hollywood to East Coast

Sony_DMPC

Sony has been making some interesting strategic decisions lately.

In a move that will bring Hollywood’s newest technology to New Jersey, Montclair State University has entered into a strategic alliance with Sony Electronics, one of the world’s and the state’s technology leaders. The agreement puts into place a long-term plan to enable the University’s communication and media students to gain real-world experience and get a high-tech preview of their future careers. The University’s new School of Communication and Media building, currently under construction on the 252-acre, suburban New Jersey campus, will provide a facility where Sony will offer industry professional training similar to what is offered at its Digital Motion Picture Center (DMPC) on the lot of Sony Pictures Studios in Culver City, California. Slated for completion in spring 2017, Montclair State’s new School of Communication and Media building will have the distinction of being one of the most extensive 4K studio and production facilities in the country located on a university campus. It will include studios and classrooms, as well as a theater outfitted with Sony laser projectors, studio cameras, production switchers and monitors. The strategic alliance between Montclair State and Sony, however, extends far beyond the equipping of this new state-of-the-art building.

Though they won’t be yielding any fruit from this in the short term, Sony is empowering a creative community that will learn and create on their equipments. Particularly in Hollywood, we see it time and time again where directors and talents champion things they grew up with like the love for 35mm film that J.J. Abrams & Quentin Tarantino share. This loyalty also extends to where they’re likely to set up shop which could allow Sony Pictures in the feature to more easily scoop up talent.

Similar to Sony’s DMPC operation in Hollywood, the Montclair State facility will be a training and educational resource, with cutting-edge 4K facilities available to students and production professionals in every aspect of the creative process. Sony will use the space to host business development events, conduct training and promote new technologies, establishing Montclair State University as a preferred environment for Sony’s introduction of new products, technologies and services relating to television, film, media and higher education. Additionally, Sony will enable Montclair State communication and media students to attend the annual National Association of Broadcasters conference and will create internship, mentoring and training opportunities for them. Sony technologies are also used by professionals in a range of b-to-b applications and markets, including live event and sports production, faith, government, education, and healthcare.

More after the jump.

Sky Movies and Sony Sign Exclusive Film Deal, Including 4K Titles

Sony_X930C_4K_HDRSky and Sony Pictures have signed an interesting deal that will be bringing 4K films to Sky customers.

 The deal will mean Sky customers will have access to Sony movies, including those in 4K, just after they’re released in cinemas – and before they hit other streaming services. 

The deal between the two companies will be valid for Sky Movies subscribers in the UK, Ireland, Germany, Austria, and Italy – allowing them access to Sony Pictures films:

 over a year ahead of any other subscription service and only a few months after they have been released in cinemas 

This means that upcoming films like Ghostbusters and Spider-Man: Homecoming will be seen on Sky Movies a few months after they have been released in theaters. The key part here is “ahead of any other subscription service,” which means Sony is keeping its films away from Netflix, Amazon Prime, and other like providers in those countries. However, SP films will still be released on Blu-ray and paid platforms like iTunes and PlayStation Network on time though obviously not in 4K, yet.

More after the jump.

Poll: Are you willing to pay to upgrade your HD UltraViolet content to 4K on Sony Ultra?

Ultra logo (PRNewsFoto/Sony Pictures Home Entertainment)

Ultra, Sony’s new 4K streaming service, went live on the company’s 2016 Android 4K TVs this week. Announced approximately 2 months ago at CES 2016, this service is stepping out into a world that already has Netflix and Amazon Prime. What sets it apart? Offering both 4K and 4K HDR content, Sony Ultra allows you to purchase each movie for $30 and upgrade the content you already own (on UltraViolet) for $12. Would you be willing to pay to upgrade the HD content you already own to 4K? Let us know in our poll after the jump.

Sony Talks Internet Speed Requirements for Ultra 4K Streaming

With streaming services offering more and more, like PlayStation Now which allows you to stream PS3 games and Ultra, bringing 4K HDR content to your TV, the need for faster internet speeds is present now more than ever. Luckily, despite the much higher resolution and interactive content, Ultra won’t require a crazy download speed. Once again, VP of consumer services and advanced platforms for Sony Pictures, Jake Winett:

 Obviously other services like Netflix, Amazon and Vudu have all launched 4K streaming, and this is something consumers are starting to look for and expect. We‘re seeing a trend where consumers are upgrading their home bandwidth. Ten years ago, consumers had DSL and maybe 4-5 Mbps. Now it’s pretty common for consumers to have 15, 50, or even 100 Mbps in some cases. We think this fits in really well with that trend, with consumers who do have a decent connection into the home. With even a modest connection of say 20 Mbps, consumers are going to get a really great 4K streaming experience. We did our encoding in such a way where we think we’re going to hit that sweet spot, and make it accessible to a lot of consumers. 

More after the jump.

Sony Ultra Will Allow You to Upgrade Content from HD to 4K for a Price

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I’ve been talking a lot about Ultra, the 4K streaming service from Sony. While I like the idea of it, the service is unfortunately going to face some tough times with a lot of questions about its long term viability in the midst of competition from Netflix and Amazon Prime who will also be providing 4K HDR content. One positive thing that Sony with doing with Ultra is allowing users to connect their UltraViolet accounts and bring over their Sony Pictures titles. Jake Winett, VP of consumer services and advanced platforms for Sony Pictures:

 We believe that consumers like choice, and don’t like to be locked into a particular silo, within a particular service. It was important that we made Ultra compatible with UltraViolet, and as a new service for consumers, to give them additional value. They can turn on Ultra, and already have titles in their library they can watch, or even upgrade to in 4K. 

While I despise everything there is about UltraViolet, this is a good move by Sony and automatically brings people into their new app with some content. If you’re staring at a blank service that only revolves around purchases, you’re less likely to use it. But if it’s already populated with your previously purchased content, then there is a far greater chance that you’ll actually put the service to use. Perhaps best, Sony will also allow you to upgrade your HD films to 4K.

 For Sony Pictures titles they already have in their library, SD or HD, depending on what they purchased previously, when a 4K HDR version of that movie is available within Ultra, when they go into that particular title … there will be an upgrade option. For $12, upgrading from HD to 4K, they’ll get the highest quality possible, and be able to stream [4K] with a single transaction. 

That’s honestly not too expensive, considering the alternative when many of us bought the same titles we owned on DVD on Blu-ray. This is frankly the same transition and with digital, it’s even easier. Ironically despite Winett touting:

 We believe that consumers like choice, and don’t like to be locked into a particular silo, within a particular service, 

once upgraded to 4K, it’s not as if they’ll be able to take their 4K purchased content to any other TV, seeing how Ultra is only compatible with Sony’s 2016 Android 4K TVs. Hopefully Sony can dramatically expand Ultra’s availability because like Netflix, they should target it to be on every 4K TV sold and not instead use it as a leveraging tool for consumers to purchase a Sony TV vs. the competition because frankly, most people likely won’t even know it exists.

Sony Ultra 4K Streaming Service Includes Interactive Bonuses

Sony Ultra 4K Streaming Service Logo

Ultra, the 4K streaming service from Sony Pictures, went live yesterday for Sony’s 2016 fleet of Android 4K TVs which includes the X850D, X930D, and X940D. Now Jake Winett, VP of consumer services and advanced platforms for SPHE, is revealing a few additional details about the service like interactive bonuses.

 Consumers can expect more or less a parity experience. I would say the one differentiator with digital is that we can be a little more dynamic with the content, with [the ability to add] additional content that becomes available to an extras package down the line, whereas with a disc it’s fixed. We also have a feature that will come with some movies, coming a little bit later after launch, [one] which adds a fun layer of interactivity. While someone is watching the movie they can get an indication that there’s a [bonus] specific [to a] piece of content. That can be a bit of trivia, it can be a digital effects deconstruction scene, things like that. We think that will be interesting for consumers. 

The biggest challenge Sony is going to face is consumer trust. For three years now, Sony has been shipping 4K TVs and none of those sets can take advantage of Ultra which is a shame. Adding to that, as it stands, Sony Pictures is the only company onboard with Ultra, seeing how it’s a Sony app and the service isn’t available on any other TV. If you own two different branded 4K TVs, even if they are 2016 models, you’ll only be able to watch your purchased movie on one of them. And those expensive 4K media server boxes from Sony? Forget about them as they’re not compatible with the service either.

According to Sony, these:

 UltraViolet-enabled films [will be] available for purchase for $30 each. 

Let’s talk more after the jump.

Sony Ultra, the 4K HDR Streaming Service, Goes Live Today

Revealed at CES 2016, Ultra, the 4K streaming service from Sony, has officially gone live and is available on their entire line of 2016 Android 4K TVs which includes the X850D, X930D, and X940D. According to Sony:

 Films available on ULTRA will include new releases like Concussion, The Night Before and The Walk, and library titles such as Crouching Tiger Hidden Dragon and Ghostbusters, priced at $30 in 4K with HDR 

4K aside, Ultra also supports 4K HDR movies, something that Netflix has also been heavily pushing with shows like Marco Polo. With native HDR included in Sony’s entire 2016 fleet of of 4K TVs, it should come as little shock that they’ve been awarded with Netflix’s Recommended TV badge. Jake Winett, VP, Consumer Services & Advanced Platforms at Sony Pictures Home Entertainment:

 ULTRA takes advantage of the latest industry innovations – 4K resolution, high dynamic range, a wider color spectrum, digital movie extras, and UltraViolet interoperability – so viewers get the most out of their televisions and their movie collections 

Let’s talk more after the jump about Sony Ultra.

Sony Pictures Speaks Out Against Georgia’s Anti-Gay Bill

Sony_Pictures_Studios_Gate

For those who live outside of the US and are not aware of our day to day politics, we are, unfortunately, going through a resurgence of bigotry, racism, sexism, and nearly whatever other negative connotation you can think of that we thought as a nation we’d moved on from nearly 50 years ago. In Georgia, there currently is a bill on the table that would legalize discrimination against LGBT people. A growing number of companies like Apple, the NFL, and movie studios which film there on a regular basis such as Disney, Time Warner, the Weinstein Company, and NBC, have all already spoken out against the bill. Now Sony Pictures is adding their voice to the mix:

 Georgia Bill HB 757 is anathema to our studio and to all those who value diversity and inclusion. We strongly urge Governor Deal to exercise his veto 

While not the kind of lengthy piece that we’re used to seeing out of other execs like Tim Cook, I’m glad to see SPE take a stance on the matter.

Sony Pictures Rebooted ‘Ghostbusters’ Trailer Released (updated)

Rebooted_Ghostbusters_Gang

Sony Pictures has given us our first look at their rebooted Ghostbusters in the form of a fairly extensive trailer. The synopsis is as such:

Ghostbusters makes its long-awaited return, rebooted with a cast of hilarious new characters. Thirty years after the beloved original franchise took the world by storm, director Paul Feig brings his fresh take to the supernatural comedy, joined by some of the funniest actors working today – Melissa McCarthy, Kristen Wiig, Kate McKinnon, Leslie Jones, and Chris Hemsworth. This summer, they’re here to save the world!

Reaction has certainly been mixed on the new trailer. As someone who was never a huge Ghostbusters fan, I’m certainly not offended by anything on screen but at the same time, it did little to excite me which is saying something, seeing how I love going to the movies. For example, this week’s docket includes Gods of Egypt, London Has Fallen, Zootopia, and Whiskey Tango Foxtrot. After the jump, the Ghostbusters trailer await you as does our comments section.

Post North Korean Hack, Sony Entertainment CEO Uses Fax Machine

ReCode_Michael_Lynton

Before you read the tweet below, I recommend reading North Korean Sony Pictures Hackers Still Out There‘ and ‘Apple’s Strong Stance on Privacy and Why Sony Must Follow.’ Now, what Sony Entertainment CEO, Michael Lynton, said at CodeMedia:

Apparently the audience laughed at the comment, when Lynton followed up with

 No, really. 

Lynton went on to say

 Slowing things down for a minute is not necessarily the worst thing. 

I know this isn’t the tech division of Sony but really? Either Lynton is hyper paranoid and is also preparing for a Communist invasion (imagine the fun of dealing with a boss who is using a fax machine) or it tells you that a year later, top brass at SPE still have little confidence in their own network security. And Sony wants to push more services into the cloud. Ideally, after the cyberattack Sony Pictures fell victim to, you’d like the company to instill confidence in its employees and consumers – not stick their tail between their legs and whimper.

No, really – read ‘Apple’s Strong Stance on Privacy and Why Sony Must Follow.’

North Korean Sony Pictures Hackers Still Out There

Sony Pictures - The Interview

Nearly two years later and it’s still impossible to get a real gauge at what happened to Sony Pictures right before Thanksgiving 2014. For those unfamiliar with it, in short, the Hollywood studio was hit with a massive cyberattack that

claimed was more than 100 terabytes of stolen data, including damaging emails and sensitive employee data. The scorched earth attack left Sony crippled for months after the attackers also destroyed data and systems on their way out the digital door, rendering some Sony servers inoperable in a move that cost the company an estimated $35 million in IT infrastructure repairs.

While cyberattacks are unfortunately nothing knew to us or Sony, this case with a bit interesting because in addition to the massive damages that was done to Sony Pictures, including unreleased films leaking, the event was seen as severe enough for the US government to get involved. Specifically, the US

 blamed North Korea for the hack and some observers began calling the breach an act of terrorism 

Eventually, the attacks would go dark and the whole thing became yesterday’s news. Except, it seems that not only did the hackers come from North Korea, but that they’ve been busy exciting other attacks, including targeting

 South Korea’s nuclear power plant 

More after the jump.

Sony Pictures to Build Hollywood-themed Family Park – Mall of Entertainment

Sony Pictures - Mall of Entertainment

Ready for some news out of left field? Sony Pictures is planning on building a

 Hollywood-themed family destination that is to include a mini indoor amusement park 

The park itself will tap into

 Sony’s movie characters and themes such as Smurfs and Men in Black. 

Notice Spider-Man isn’t on that list and that’s because Sony only owns the movie license to the Marvel character. Currently, the place is being called the Mall of Entertainment and is

 geared toward families who may want a getaway but can’t afford to visit Disneyland, Universal Studios or other U.S. attractions. 

Not sure families will be clamoring to vacation in Albertville, Minnesota where this thing is going to be built but what do I know? Perhaps Sony might want to look at their current cash cow, PlayStation, and tap into that a bit. Think about rides/VR experiences based on Uncharted, God of War, and even Gran Turismo. Throw that into a park and you might have something that will draw crowds. It’s worth noting that the above image has the familiar PlayStation buttons with the words PlayStation VR though information on the project currently contains no mention of PS VR – or PlayStation, for that matter.

More details on the Mall of Entertainment after the jump.

Poll: Are You Planning to See ‘Deadpool’ This Weekend?

Deadpool

Everyone’s favorite antihero is sweeping the nation’s movie theaters beginning today, February 12. Deadpool’s R rating has been a topic of much discussion (so much drama!) – but will that keep you from joining the troublemaker at his big Hollywood debut? Let us know in our poll after the jump!

Sony 4K Blu-ray Player Confirmed

Sony_4K_Blu_ray_Player_Mockup

A lot of people were surprised that a Sony 4K Blu-ray player was not announced at CES 2016. Though an announcement would have been typical and almost expected from Sony, I’ve argued that it makes little sense for them to launch such a player with there are few 4K TVs on the market and even less 4K Blu-ray movies, if any. John Anderson, country head for Sony UK and Ireland:

Certainly back in October/November 2015 it wasn’t clear we were going to come out with one at all and it’s relatively new information that within FY2016 that we will see something. That’s new information. It’s being accelerated. Maybe that’s due to more information and confidence coming through from Sony Pictures?

 It was a question of priority and investment in all the things we have got to do, therefore they’re speeding it up.

More comments from Sony after the jump.