Sony Group Corp (6758.T) stated on Wednesday that it is benefiting from its role as an independent content provider to streaming services at a time when platform operators are being pushed to show profitability.
Tony Vinciquerra, CEO of Sony Pictures Entertainment, expressed during an investor briefing that our strategic choice to steer clear of the saturated general streaming market and focus on becoming the foremost independent content provider in the industry has proven to be the correct decision.
Streaming platforms have seen notable successes from the Japanese tech entertainment conglomerate, including HBO Max's "The Last Of Us," Netflix's "Cobra Kai," and Apple TV+'s "For All Mankind."
Conglomerates have invested enormous sums in programming to support their streaming platforms, but Wall Street is now scrutinizing them as attention swings from subscriber growth to profitability.
The owners of streaming platforms are also considering reinventing themselves as content providers, which is putting pressure on the finances for production.
Vinciquerra emphasized that Sony Pictures continues to maintain an exceptionally strong position, evident in our capacity to deliver content to a wide array of partners and platforms.
As a result of the success of shows like "Demon Slayer," Sony owns the anime streaming service Crunchyroll and is hoping to cash in on the increased interest in similar programming around the world.
This year, sales are expected to increase by 11% to 1.52 trillion yen ($11.26 billion) because to increased Crunchyroll sales and more theatrical releases as moviegoers return to the theaters, with operational profit expected to remain approximately unchanged year over year.
The upcoming film "Napoleon" by Ridely Scott will initially be released in theaters before being streamed on Apple TV+.