In an era where content is king, Sony is making a bold move into the world of original content creation. This strategic shift marks a significant transformation for the Japanese tech giant, moving away from its traditional focus on distribution towards a more aggressive pursuit of intellectual property in the global entertainment market.
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Creating Intellectual Property:
- Sony’s chief executive, Kenichiro Yoshida, emphasizes the importance of transitioning from being a consumer electronics brand to a global entertainment powerhouse. By leveraging its technological capabilities, Sony aims to produce live entertainment that resonates with a global audience.
- Over the past six years, Sony has invested $10 billion to bolster its portfolio of games, films, and music. This shift has helped the company capture a larger share of the entertainment industry, which now contributes 60% of its annual revenue.
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Strategic Focus:
- Instead of directly competing with streaming giants like Netflix and Amazon, Sony has chosen to collaborate with them by selling its film and TV rights. This collaborative approach allows Sony to maintain valuable relationships while expanding its content creation capabilities.
- By developing closer ties with Big Tech players, Sony can effectively distribute its intellectual property across various platforms, maximizing its reach and profitability.
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Evolution into an Integrated Media Company:
- Sony’s top executives recognize the need to foster intellectual property from the early stages to yield higher returns. This proactive approach enables Sony to create content for games, films, and anime that resonates globally.
- While Sony has excelled in finding a global audience for existing IP, there is a growing emphasis on cultivating original content from inception to capture new markets and audiences.
- Embracing Change:
- Hiroki Totoki, Sony’s CFO, acknowledges the importance of fostering IP from the beginning. This strategic shift reflects Sony’s commitment to staying ahead in the rapidly evolving entertainment landscape.
- The focus on creating new content is not only a strategic imperative but also a response to market demands. By investing in original content, Sony is future-proofing its business and ensuring its relevance in the industry.
Sony’s foray into original content creation represents a pivotal moment in the company’s history. By embracing a "creation shift," Sony is poised to leverage its diverse media businesses and technological expertise to transform into a global entertainment powerhouse. As the entertainment industry continues to evolve, Sony’s strategic pivot towards content creation underscores its commitment to innovation and growth in an ever-changing landscape.
