Sony 2009 Annual Report Download - page 29

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Review of Operations in the Entertainment
Business
Sony Pictures Entertainment (SPE) had a successful year on
many fronts in the fiscal year ended March 31, 2009 despite
facing challenges brought on by the current global economy.
W hi le th e s tu di o rem ai ns mi nd fu l o f the ec o no mi c
circumstances, people worldwide continue to show an interest
in such entertainment products as motion pictures, television
programs, and online, mobile and other content. In particular,
theater attendance is greater than in past years*1 as consumers
continue to find value in the movie-going experience, even in
the midst of a difficult financial climate.
Motion Pictures
SPE’s Motion Picture Group achieved more than $2.7 billion in
receipts at the worldwide box office in calendar year 2008, making
it the third biggest year on record for the studio. Hancock, SPE’s
2008 summer blockbuster starring Will Smith, was a major hit,
taking in more than $600 million in global box office receipts. The
latest James Bond film, Quantum of Solace, surpassed Casino
Royale—the previous title in the series—with the biggest North
American box office opening in the franchise’s history.*2
You Don’t Mess With the Zohan, Paul Blart: Mall Cop, Step
Brothers and Pineapple Express, as well as Screen Gems’
Quarantine and Lakeview Terrace are among the other titles that
also performed well at the box office. Sony Pictures Classics
enjoyed critical success with multiple Academy Award®, Golden
Globe®, Film Independent Spirit Award and Cannes Palme D’Or
nominations and five wins for films including Rachel Getting
Married, Waltz with Bashir, The Class and Frozen River.
A number of major titles have been released or are slated for
the 2009 calendar year including Angels & Demons, The Taking
of Pelham 1 2 3, Julie & Julia and an epic Roland Emmerich film,
2012.
Sony Pictures’ International Motion Picture Production Group,
SPE’s local-language production arm, achieved box office
success in Russia and India with the releases of The Very Best
Movie 2 and Raaz 2 debuting at number one in their respective
markets.
Sony Pictures Worldwide Acquisitions Group acquired
distribution rights to Terminator Salvation in a majority of
international territories. In addition, The Take received a Film
Independent Spirit Award nomination.
*1 Daily Finance, April 15, 2009, citing the National Association of Theater
Owners (NATO)
*2 The New York Times, November 16, 2008
Home Entertainment
Sony Pictures Home Entertainment (SPHE) achieved the second
highest catalog (other than new release) market share of the U.S.
DVD market in calendar year 2008*3 and earned several awards
from retailers for its excellent quality of service.
Internationally, SPHE continues to have success with respect to
Blu-ray Disc products, maintaining the number two overall market
share position for the year. Total industry Blu-ray Disc software
sales quadrupled to 37.4 million units in 2008,*4 demonstrating
the enduring global demand for high-quality home entertainment.

Sony Pictures
13.0%
Lions Gate
4.5%
Other
15.0%
Paramount
16.4%
Warner Bros.
18.3%
Fox
10.7%
Universal
11.5%
Disney
10.6%
North American Theatrical Box Office Revenue
Market Share (Calendar Year 2008)
Quantum of Solace © 2008 Danjaq, LLC, United Artists Corporation and Columbia Pictures Industries, Inc. All Rights Reserved.
Hancock © 2008 Columbia Pictures Industries, Inc. and GH Three LLC. All Rights Reserved.