Sony Corp, the electronics firm is aiming to lift its revenues for movie entertainment by over a third within the next 3 years as a way to counter the weakening sales of its smartphones.
Company CEO Kazuo Hirai is now under pressure as how to indicate that the entertainment industry could become a strong contributing factor in revenue after declining the Third Point’s proposal to develop the segment last year.
Hirai was appointed to office in 2012, and investors are keeping close watch for signs that the company’s restructuring under him is fruitful. For the very first time, the company scrapped dividends in September, mentioning deep losses in its smartphone segment.
The CEO pledged to disclose a long-term growth plan during an investor meeting. The plan is aimed to be longer, and to be announced towards the end of March, although Hirai did not provide further details.
The company reported a lesser than expected quarterly operating loss last month, which was acknowledged as a portion of its restructuring by the finance chief. The result was attributed to its weakening smartphone unit sales due to increased competition against budget products from Chinese companies.
The CEO emphasized that the “Breaking Bad” and “The Amazing Spider-Man”, under its Sony Pictures Entertainment unit aims to reach 10 to 11 billion dollars towards the end of March 2018, jumping 36% from the 8.1 billion estimate for the present year.
The company also stated that it’s aiming for 4.8 to 5.2 billion dollar revenue from Sony Music division within 3 years compared to the 4.8 billion dollar estimate for this year.
Sony Music and Sony Pictures are estimated to comprise nearly 18% of the company’s total sales this 2014, slightly higher than its mobile business. Company shares closed over 6% at 2,478.5 yen.