Sony 2001 Annual Report Download - page 40

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Sony Corporation Annual Report 2001
38
BUSINESS REVIEW: PICTURES
MESSAGE FROM TOP MANAGEMENT
During the year under review, we strengthened the position of Sony Pictures Entertainment (SPE) as a
premier global content provider, enhanced SPE’s corporate value by adding to our film and TV libraries and
expanding our international channels business, and took major strides to support Sony’s goal to be the
world’s broadband entertainment leader.
Despite the challenging conditions in our industry, SPE recorded higher sales and won prestigious industry
awards. However, in terms of profit performance, our net income was lower than that of the previous year, in
large part due to the adoption of new accounting standards mandated for the motion picture business.
In motion pictures, we surpassed the billion-dollar mark in international box office revenues for only the
second time in our Company’s history. Building on that momentum, we are reorganizing to facilitate a more
consistent performance through improved production efficiencies and a strategic focus on our film slate. We
consolidated our worldwide marketing and distribution organization, enabling us to coordinate these critical
functions more closely. In addition, we established a coveted partnership with Joe Roth’s Revolution Studios
and plan to distribute 36 of their films over the next six years.
Our objectives are to continue to strengthen our existing movie and television businesses, leverage our
content in new ways, build new businesses, and make a smooth and profitable transition to the broadband
entertainment age.
The critically acclaimed blockbuster
Crouching Tiger, Hidden Dragon
earned four Academy Awards®
including Best Foreign Film and
became the highest-grossing foreign
language film ever in North America.