Sony discloses supply chain impact, focus on theatrical window for tent poles – The Hollywood Reporter

A reinvigorated Sony doubles the theatrical window for star attractions like the Spider Man franchise, but the studio must also rethink its supply chains to ensure cost-effective production and distribution for its varied entertainment products.

You wouldn’t know it by the way Sony executives, led by Sony Pictures Entertainment chairman Tom Rothman, teased upcoming releases like High-speed train and Spider-Man: Through the Spider-Verse recently at CinemaCon. But a Sony looking to attract top creative talent who are eyeing a traditional theatrical release for their movies is also hedging its bets post-pandemic as it eyes cheaper movie projects for streaming platforms.

An investor presentation in May, led by Sony Pictures Entertainment Chairman and CEO Tony Vinciquerra, focused on how the conglomerate could better leverage its intellectual property. And an investor from June 29 deposit of the recently renamed Sony Group Corp., provides more details on the business strategy and outlook for its Pictures unit as well as its Electronic Products & Solutions and Network Games & Services divisions.

It’s a window into the challenges the studio sees as it talks about a ‘flexible release strategy’ that prioritizes theatrical releases for tents, while also moving towards video streaming platforms. .

“In this environment, Sony plans to continue to build on its strengths as an independent studio, working to build and strengthen its content intellectual property and taking steps to expand its direct-to-consumer services based on communities of interest,” Sony said in the regulatory statement. filing with the Securities and Exchange Commission. On the film side, the studio recently released Morbiuswith a new Marvel character, and will continue to expand the Sony Pictures universe of Marvel characters.

“[F]after the theatrical release Unexplored in February 2022, Sony plans to further expand its movies and TV shows based on game IP,” the conglomerate said in the filing.

This will build on Sony’s Pictures division, which has seen theatrical revenues skyrocket at the box office for Spider-Man: No Coming Home and Venom: Let there be carnage. At the same time, the studio said its media networks division will bolster its direct-to-consumer offerings, including anime streaming service Crunchyroll and SonyLIV, a digital streaming service in India.

And Sony has also seen TV revenues increase with deals such as Netflix’s licensing deal for Seinfeld as the studio seeks to sell movies and TV shows to all major streaming services and TV networks. But with Sony deep in the video game business through its Sony Interactive Entertainment division creating content for the PlayStation platform, the studio is experiencing endless component shortages, including for semiconductors and chain disruptions. supply.

To mitigate the impact of production bottlenecks, Sony in the SEC filing said it would do business on two tracks, the first being a “profit axis business area”, where the focus is on ensuring profitability, and the second is a “growth axis business area”. zone” to stimulate growth through the creation and expansion of new businesses.

“In the Growth Axis business area, to create future entertainment with creators, Sony plans to work with internal and external partners to create a recurring solutions business that delivers new value to creators in areas of virtual production and media cloud businesses,” the filing reads.

The aim is to strengthen the resilience of Sony’s supply chain, while increasing the consumer appeal of PlayStation hardware and software. “In this environment, Sony will continue to work to secure components and promote market penetration for the PS5, while also aiming to achieve future growth by maintaining and increasing user engagement and expanding the PlayStation community globally. beyond the console,” the studio said.

Kimberly B. Nguyen