Sony 2003 Annual Report Download - page 16

Sony Corporation Annual Report 200314
picture; and delivering fee-based secure digital down-
loads of films via the Internet through M ovielink, a
video-on-demand service developed by Sony Pictures
Digital along w ith four other motion picture studios.
Similarly, Sony Music Entertainment Inc. (SM EI) is licens-
ing its publishing copyrights and songs to the burgeon-
ing cell phone ringtones market. SM EI also provides cell
phone subscribers w ith news, pictures, tour dates, album
releases and more, all displayed with one of the richest
graphic interfaces available on wireless phones today.
We also look forw ard to generating additional
revenue opportunities by converting our content libraries
to new entertainment formats. These include the Blu-ray
Disc, which w ill hold more than tw o hours of high defini-
tion video on a single disc, and SCE’s PSP entertainment
system, which will use the UMD format, and provide
portable enjoyment of games, movies and music.
SMEI
Under the direction of its new Chairman and CEO
Andrew Lack, SMEI has a clear and comprehensive
strategy for dealing w ith the challenges and opportuni-
ties of the current global music marketplace.
SMEI has intensified its focus on discovering and
developing artists. As part of this effort, SM EI has
recently formed the Sony Urban Music division, which is
dedicated to developing the best urban talent. SM EI is
also redoubling its successful strategy of identifying
and cultivating local talent throughout the world, and
building their international appeal in the U.S. and other
major markets. This effort has already met with great
success with artists such as Celine Dion, Ricky Martin,
Shakira and Las Ketchup.
The company w ill also create additional revenue
streams through expanded digital distribution and the
licensing of content to a growing number of digital music
services; enhanced personalized offerings such as
custommixcd.com, which allows users to create their
own compilation CDs; and new commercial relationships
with a variety of corporate partners such as Pepsi and
Chrysler, which also provide SM EI artists more opportuni-
ties to extend the reach of their brands and imagery.
SPE
SPE in the coming years w ill continue to build and expand
its motion picture catalog, helping to enhance the value of
its vast library of films and television programs; capitalize
on the explosive growth of the DVD market; and develop
additional content distribution platforms.
SPE’s motion picture strategy, which resulted in a
record performance in the fiscal year ended March 31,
2003, is to distribute a diversified portfolio of motion
pictures, blending event, star-driven and targeted films.
Notable films in 2003 include Will Smith in Bad Boys II;
S.W.A.T.; Something’s Gotta Give starring Jack Nicholson;
and Tim Burton’s Big Fish. Next year, Spider-Man 2, based
on our 2002 record-breaking blockbuster, will be a key
2004 theatrical release. Additionally, we are developing
computer-generated animated films from the newly
formed Sony Pictures Animation division.
In television production, we remain dedicated to an
economic approach relying on stable, profitable game
shows and daytime franchises, cable series, and selective
network primetime production including the upcoming
Stephen King miniseries Kingdom Hospital. We will also
concentrate on international production and on the ex-
pansion of our international cable channels. We already
have formed or invested in 30 television channels around
the world that create significant asset value for Sony.
In addition, building on our pioneering success w ith
the massively multiplayer paid subscription game
EverQuest, we recently launched Planetside and plan to
introduce EverQuest II and Lucas Arts’ Star Wars Galaxies,
creating exciting new vistas in online gameplay.