Sony 2015 Annual Report Download - page 32

Pictures
SPE generally retains all rights relating to the worldwide distribution of its internally produced motion
pictures and television programming, including rights for theatrical exhibition, home entertainment distribution,
pay and free television exhibition and other markets. SPE also acquires distribution rights to motion pictures and
television programming produced by other companies, and jointly produces and distributes motion pictures and
television programming with other studios, television networks or production companies. These rights may be
limited to particular geographic regions, specific forms of media or periods of time.
Within the U.S., SPE uses its own distribution service businesses, Sony Pictures Releasing and Sony
Pictures Classics, for the U.S. theatrical release of its motion pictures and for the theatrical release of motion
pictures acquired from and produced by others.
Outside the U.S., SPE generally distributes and markets motion pictures through one of its Sony Pictures
Releasing International subsidiaries. In certain countries, however, SPE has joint distribution or sub-distribution
arrangements with other studios, or arrangements with independent local distributors or other entities.
The worldwide home entertainment distribution of SPE’s motion pictures and television programming (and
product acquired or licensed from others) is handled through Sony Pictures Home Entertainment, except in
certain countries where SPE has joint distribution or sub-distribution arrangements with other studios, or
arrangements with independent local distributors. Product is distributed in various home media formats including
DVD, Blu-ray Disc™, electronic sell-through and video-on-demand.
The worldwide television distribution of SPE’s motion pictures and television programming (and product
acquired or licensed from others) is handled through Sony Pictures Television. SPE’s library of motion pictures
and television programming is licensed to broadcast television networks, pay and basic cable networks, direct
broadcast satellite providers as well as to subscription and advertising supported Internet television providers
(such as Sony’s PSN and Netflix).
SPE’s television networks are distributed to multiple distribution platforms such as cable, satellite, Internet
Protocol Television (IPTV) systems, and mobile operators for delivery to viewers around the world. These
networks generate advertising, subscription and other ancillary revenues.
Music
SME and SMEJ develop, produce, market, and distribute recorded music in various commercial formats.
SME and its affiliates conduct business globally under “Columbia Records,” “Epic Records,” “RCA Records,”
and other labels. SMEJ conducts business in Japan under “Sony Music Records,” “Epic Records Japan,”
“SME Records,” “Ki/oon Music,” “Sony Music Associated Records,” and other labels.
Sony owns and acquires rights to musical compositions, exploits and markets these compositions, receives
royalties or fees for their use and conducts its music publishing business through a joint venture with a third-
party investor in countries other than Japan primarily under the Sony/ATV name. Sony and the Estate of Michael
Jackson (the “Estate”) entered into a binding Memorandum of Understanding on March 14, 2016 and a definitive
agreement on April 18, 2016 for Sony to obtain full ownership of Sony/ATV by acquiring the 50 percent interest
in Sony/ATV held by the Estate. The closing of the transaction is subject to certain closing conditions, including
regulatory approval.
SMEJ creates artwork and produces packaged home entertainment products including music/games, and
organizes various events in Japan through Sony Music Communications Inc. SMEJ also produces, markets, and
distributes animation products through Aniplex Inc.
Financial Services
Sony Life conducts its life insurance business primarily in Japan. Sony Life’s core business is providing
death protection and other insurance products to individuals, primarily through a consulting-based sales approach
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