Improving Sony's Bottom Line

MISSION:IMPROVE SONY’S BOTTOM LINE

by Jessica Northey | Excel Data Reporting

Hi, I’m Jessica and this is my report on improving Sony’s bottom line.

The Pitch

(Sony, 2012)

The pitch. Sony has a home system for 3D blu-ray movies. The target market are early adopters. In 2011 there are plans to release 65 titles of 3D blue-ray movies in 2012.

Create a music video library of live performances in 3D

(Sony, 2012)

To create a music library of live performances in 3D. Imagine having a party in your home to invite guest over for a live performance in 3D! All you need are headphones for a silent concert in your apartment!

The Breakdown

Do I have your attention yet? Sony can increase marketing for the 3D home system and implement the new content to increase the bottom line. I’m presenting data for Sony’s net income, live performances, and 3D HDTV sales.

-$3,000,000

-$2,250,000

-$1,500,000

-$750,000

$0

2009 2010 2011

2011 Major Spike of Net Income Loss

Net Income("Sne income statement," 2011)

Sony is experiencing a significant decline in their bottom line. There could be a number of reason for this. It is critical for Sony to take a large market share to avoid being bought out by a stronger company or worse. This is possible through development of the live performance music library subscription services.

0B

1.0B

2.0B

3.0B

4.0B

2009 2010 2011 2012

2.272.58

2.933.28

Live Performance Revenues Down 12%

Box Office Sales(Moore, 2011)

“According  to  Pollstar,  the  live  performance  market  has  also  been  hit,  along  with  the  broader  music  industry,  and  offers  no  guarantee  of  growing  revenues.”  Live  performance  revenues  are  down  by  12%  starCng  in  2009  to  2010  and  projected  at  the  same  decline  rate  in  2011  and  2012  would  result  in  $1  billion  dollar  loss  from  2009.  

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2011 2012 2013

1400

900

674

Cost of 3D LCD HDTV Declines

Price(White, 2012)

US consumers spend $160.8 million in 2011 on 3D blu-ray discs, which is a 305% increase from 2010. The cost of 3D LCD HDTV in the US declined from 2011 and is predicted to price as low as $674 for non-brand. The generic brands are now producing at a low price, which forces brand names to lower their price as well.

(Nielsen, 2010) Index

AP

EU

MEAP

LA

NA

0 50 100 150 200

75

175

200

75

100

Ownership of 3DTVs by Region

(Sony, 2012)

There is a lot of room for growth in NA compared with these 5 particular regions. The ownership index of 3DTVs by region are as follows: Asian-Pacific, Europe, Middle East, Africa, and Pakistan, Latin America, and North America. “According to Nielsen, North America and Europe lag with index scores of 75, meaning residents there are 25% less likely to own or plan to buy an HDTV than the global average.”

The Solution

The solution for Sony increasing their bottom line is to go for marketing to early adopters who already have a 3DTV and/or owns a Sony Playstation, which has the ability to play the 3D blu-ray discs. Also to implement the new content of the live performances subscription service. The future entertainment possibilities are endless with this new technology.

(Sony, 2012)

(Clehman, 2010)

Now imagine Michael Jackson doing the moonwalk in your living room! Thank you, do you have any questions? The idea is to create new content for a new technology with live performances from past and present musicians.

REFERENCES1. Sne income statement | sony corporation common stock – yahoo finance!. (2011). Retrieved from http://finance.yahoo.com/q/

is?s=SNE+Income+Statement&annual

2. Moore, F. (2011). Ifpi digital music report 2011. In Digital piracy – counting the cost (p. 16). ifpi. Retrieved from http://www.google.com/url?sa=t&rct=j&q=music%20live%20performance%20statistics%202011&source=web&cd=3&ved=0CGwQFjAC&url=http%3A%2F%2Fwww.ifpi.org%2Fcontent%2Flibrary%2FDMR2011.pdf&ei=8LW9T9GDFKme6AGz8YE3&usg=AFQjCNHmp2Wo23CVokQuU_en0hlbperKyg&cad=rja

3. White, M. (2012, March 22). Hope you didn’t buy a 3d tv last year read more: http://moneyland.time.com/2012/03/22/hope-you-didnt-buy-a-3d-tv-last-year/

4. Nielsen. (2010, March). Index of ownership definite purchase intent for 3dtv by region. Retrieved from http://www.marketingcharts.com/television/middle-east-leads-3dtv-ownership-interest-13861/nielsen-3dtv-regional-index-august-2010jpg/

5. Sony. (Designer). (2012). 3d world - created by sony. [Web Graphic]. Retrieved from https://news.sel.sony.com/en/sony_brands/release/Sony3DTV.html

6. Sony. (Designer). (2012). Television, home audio video press kit. [Web Graphic]. Retrieved from https://news.sel.sony.com/assets/tv

7. Clehman, K. (Photographer). (2010). Mj tv tribute guide. [Print Photo]. Retrieved from http://www.blackisonline.com/2010/06/mj-tv-tribute-guide/