Current Situation of Sony Entertainment

Topics: Music industry, Sony Music Entertainment, Sony Pages: 16 (3914 words) Published: February 29, 2012
Facts and Starting points for Sony Music Entertainment

Chapter 1: Mission, Vision Core Competences


Sony BMG does not have a publicized mission statement. However, the mother company Sony has changed its mission statements several times in history, whereas it is the following: ‘’To become a leading global provider of networked consumer electronics, entertainment and services.’’ (Sony 2010)


Equal to the mission, SONY BMG does not have a publicized vision. The general vision of Sony is: ‘’We Help Dreamers Dream,
Sony is a company dedicated to the love of life. We develop things for any kind of imagination. We develop Products that stimulate the senses and refresh the spirit and create ideas that always surprise and never disappoint.’’ (Sony 2010)

Core Competencies:
- One of the worldwide leaders in information technology products
- broadband entertainment company
- designing succesful new products and brands
- one of the most popular innovative consumer brand
- succesful convergent revenue streams
- own entertainment network

From a hardware perspective, Sony’s strategy is focused on four gateways to the networked world: 1) Digital televisions and set-top boxes; 2) VAIO personal computers; 3) Mobile devices, such as the CLIE handheld devices and digital phones; and 4) PlayStation game consoles. Sony has the vision, technology and content to forge a direction in consumer entertainment that no other company can match.

Chapter 2: Analysis
In this chapter, different data will be used to gain information about the marketing model of Sony BMG . To have the most up to date marketing model, results from the last 3 years will be used. (2009, 2010, 2011) * Analysis of 2009,10 and 11

* SWOT Analysis

Sony Analysis

Sony BMG 2009

Sony music entertainment business consists primarily of Sony Music Entertainment (SME), which operates worldwide outside of Japan, and Sony Music Entertainment Japan Inc. (SMEJ), which operates in the Japanese market. Sony has changed its business segment classification from 2010, whereas in 2009 SME was part of all other income. Increase in Sales

* Due to consolidation of Sony BMG
However, when the consolidation is excluded, the sales would have decreased * Due to lower sales of Sony Music Entertainment
* Settlement payment to copyright infringement
Decline in Operating Income
* Due to copyright infringement costs
* Sony sold ‘’ The sony center am Potsdamer Platz in Berlin, for 10 milion yen less than the actual value Strategy 2009
* Focus on generating hits for both well-known and emerging recording artists * Create new and Innovative business models for a music market in transaction * Licensing deals with Sony Ericsson, Apple, Nokia, Vodafone, MySpace and Amazon. The goal is to expand number of service providers who are offering music from Sony Artists and offer a diversified way of how the consumer acquires music. * Sony United Initiative; Integrating its music into wide range of Sony products and related services

Sony Music Entertainment 2010
Sony has changed its business segment classification from 2010, whereas music is one segment.

Increase in Sales
* Sales included the full year result of SME which was consolidated on the 1st of oct. 2008 * Withouth the consolidation, sales in music segment would have declined with a percentage of 5 * Releases of Susan Boyle, Michael Jackson and Ikimono-Gakari

Operating Income Increased
* Declining expenses of the previous year
* Improved results of Sony Music Entertainment & Sony Music Entertainment Japan inc. (releases of the albums from artists above)

Strategy 2010
* Focus on...
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