Improving Sony's Bottom Line


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A presentation with my speaker notes about a new media product invention to improve Sony's financial status. ©2013 All Rights Reserved.

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Improving Sony's Bottom Line

  1. 1. MISSION: IMPROVE SONY’S BOTTOM LINE by Jessica Northey | Excel Data ReportingHi, I’m Jessica and this is my report on improving Sony’s bottom line.
  2. 2. (Sony, 2012) The PitchThe pitch. Sony has a home system for 3D blu-ray movies. The targetmarket are early adopters. In 2011 there are plans to release 65 titles of3D blue-ray movies in 2012.
  3. 3. Create a music video library of live performances in 3D (Sony, 2012)To create a music library of live performances in 3D. Imagine having aparty in your home to invite guest over for a live performance in 3D! Allyou need are headphones for a silent concert in your apartment!
  4. 4. The BreakdownDo I have your attention yet? Sony can increase marketing for the 3D home system andimplement the new content to increase the bottom line. I’m presenting data for Sony’snet income, live performances, and 3D HDTV sales.
  5. 5. 2011 Major Spike of Net Income Loss $0 -$750,000 -$1,500,000 -$2,250,000 -$3,000,000 2009 2010 2011 Net Income ("Sne income statement," 2011)Sony is experiencing a significant decline in their bottom line. Therecould be a number of reason for this. It is critical for Sony to take alarge market share to avoid being bought out by a stronger company orworse. This is possible through development of the live performancemusic library subscription services.
  6. 6. Live Performance Revenues Down 12% 4.0B 3.0B 3.28 2.93 2.58 2.0B 2.27 1.0B 0B 2009 2010 2011 2012 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.  
  7. 7. Cost of 3D LCD HDTV Declines $1,400 1400 $1,200 $1,000 900 $800 $600 674 $400 $200 $0 2011 2012 2013 Price (White, 2012)US consumers spend $160.8 million in 2011 on 3D blu-ray discs, whichis a 305% increase from 2010. The cost of 3D LCD HDTV in the USdeclined from 2011 and is predicted to price as low as $674 for non-brand. The generic brands are now producing at a low price, whichforces brand names to lower their price as well.
  8. 8. Ownership of 3DTVs by Region AP 100 EU 75 MEAP 200 LA 175 NA 75 (Sony, 2012) 0 50 100 150 200 (Nielsen, 2010) IndexThere is a lot of room for growth in NA compared with these 5particular regions. The ownership index of 3DTVs by region are asfollows: Asian-Pacific, Europe, Middle East, Africa, and Pakistan, LatinAmerica, and North America. “According to Nielsen, North America andEurope 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.”
  9. 9. The SolutionThe solution for Sony increasing their bottom line is to go for marketing to earlyadopters who already have a 3DTV and/or owns a Sony Playstation, which has the abilityto play the 3D blu-ray discs. Also to implement the new content of the liveperformances subscription service. The future entertainment possibilities are endlesswith this new technology.
  10. 10. (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 newcontent for a new technology with live performances from past andpresent musicians.
  11. 11. REFERENCES1. Sne income statement | sony corporation common stock – yahoo finance!. (2011). Retrieved from is?s=SNE+Income+Statement&annual2. Moore, F. (2011). Ifpi digital music report 2011. In Digital piracy – counting the cost (p. 16). ifpi. Retrieved from http:// %202011&source=web&cd=3&ved=0CGwQFjAC& %2FDMR2011.pdf&ei=8LW9T9GDFKme6AGz8YE3&usg=AFQjCNHmp2Wo23CVokQuU_en0hlbperKyg&cad=rja3. White, M. (2012, March 22). Hope you didn’t buy a 3d tv last year read more: Nielsen. (2010, March). Index of ownership definite purchase intent for 3dtv by region. Retrieved from http:// august-2010jpg/5. Sony. (Designer). (2012). 3d world - created by sony. [Web Graphic]. Retrieved from sony_brands/release/Sony3DTV.html6. Sony. (Designer). (2012). Television, home audio video press kit. [Web Graphic]. Retrieved from assets/tv7. Clehman, K. (Photographer). (2010). Mj tv tribute guide. [Print Photo]. Retrieved from mj-tv-tribute-guide/