‘How Do You Know’ Depresses Sony’s Earnings In A Dreary Quarter

Based on the company’s generally disappointing financial report this morning, it looks like Sony CEO Howard Stringer will have to keep waiting to see a big payoff from the strategy to meld entertainment hardware and software. For the quarter that ended in March, Sony says the industrywide decline in DVD revenues and the lousy results for its Jim Brooks film How Do You Know partly accounted for the 11% drop in movie and TV sales, which came in at $2.1 billion. But operating profits at the segment were up 8%, to $433 million, due largely to belt tightening and a one-time $325 million gain from its revaluation of its 40% stake in the Game Show Network. That will come back to bite Sony next year: The company projects that movie and TV revenues will improve in 2012, but profits will be down without the one-time benefit.

At Sony Music, the company says the continuing slide in CD sales mean that revenues will fall once again in 2012 after dropping 13% to $1.3 billion in the first quarter of 2011. But the operation’s cost-cutting efforts enabled it to report a $46 million operating profit, up from a $7.4 million loss last year.

Sony warned this week that a $4.4 billion charge to account for costs from this year’s tsunami and earthquake, as well as the recent cyber-attack on its PlayStation Network, would trash earnings for the the fiscal year that ended in March. The company says it wound up with a $3.1 billion loss on revenues of $86.5 billion, down about half a percent. Read More »

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Golden Globe: Cold Category Is Hot Again

Pete Hammond

Here’s news: awards consultants tell me that the Hollywood Foreign Press Association is relaxing its rules slightly this year in order to  encourage distributors to choose the category they feel their movies belong in. But, of course, the HFPA still reserves the ultimate … Read More »

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Hot Trailer: ‘How Do You Know’

Mike Fleming

James L. Brooks is back with How Do You Know, a relationship comedy from Sony Pictures that reunites Brooks with Jack Nicholson. Reese Witherspoon, Paul Rudd and Owen Wilson also star. The film opens December 17.

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