Post on 12-May-2015
description
MISSION:IMPROVE SONY’S BOTTOM LINE
by Jessica Northey | Excel Data Reporting
Hi, I’m Jessica and this is my report on improving Sony’s bottom line.
The Pitch
(Sony, 2012)
The pitch. Sony has a home system for 3D blu-ray movies. The target market are early adopters. In 2011 there are plans to release 65 titles of 3D blue-ray movies in 2012.
Create a music video library of live performances in 3D
(Sony, 2012)
To create a music library of live performances in 3D. Imagine having a party in your home to invite guest over for a live performance in 3D! All you need are headphones for a silent concert in your apartment!
The Breakdown
Do I have your attention yet? Sony can increase marketing for the 3D home system and implement the new content to increase the bottom line. I’m presenting data for Sony’s net income, live performances, and 3D HDTV sales.
-$3,000,000
-$2,250,000
-$1,500,000
-$750,000
$0
2009 2010 2011
2011 Major Spike of Net Income Loss
Net Income("Sne income statement," 2011)
Sony is experiencing a significant decline in their bottom line. There could be a number of reason for this. It is critical for Sony to take a large market share to avoid being bought out by a stronger company or worse. This is possible through development of the live performance music library subscription services.
0B
1.0B
2.0B
3.0B
4.0B
2009 2010 2011 2012
2.272.58
2.933.28
Live Performance Revenues Down 12%
Box Office Sales(Moore, 2011)
“According to Pollstar, the live performance market has also been hit, along with the broader music industry, and offers no guarantee of growing revenues.” Live performance revenues are down by 12% starCng in 2009 to 2010 and projected at the same decline rate in 2011 and 2012 would result in $1 billion dollar loss from 2009.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2011 2012 2013
1400
900
674
Cost of 3D LCD HDTV Declines
Price(White, 2012)
US consumers spend $160.8 million in 2011 on 3D blu-ray discs, which is a 305% increase from 2010. The cost of 3D LCD HDTV in the US declined from 2011 and is predicted to price as low as $674 for non-brand. The generic brands are now producing at a low price, which forces brand names to lower their price as well.
(Nielsen, 2010) Index
AP
EU
MEAP
LA
NA
0 50 100 150 200
75
175
200
75
100
Ownership of 3DTVs by Region
(Sony, 2012)
There is a lot of room for growth in NA compared with these 5 particular regions. The ownership index of 3DTVs by region are as follows: Asian-Pacific, Europe, Middle East, Africa, and Pakistan, Latin America, and North America. “According to Nielsen, North America and Europe lag with index scores of 75, meaning residents there are 25% less likely to own or plan to buy an HDTV than the global average.”
The Solution
The solution for Sony increasing their bottom line is to go for marketing to early adopters who already have a 3DTV and/or owns a Sony Playstation, which has the ability to play the 3D blu-ray discs. Also to implement the new content of the live performances subscription service. The future entertainment possibilities are endless with this new technology.
(Sony, 2012)
(Clehman, 2010)
Now imagine Michael Jackson doing the moonwalk in your living room! Thank you, do you have any questions? The idea is to create new content for a new technology with live performances from past and present musicians.
REFERENCES1. Sne income statement | sony corporation common stock – yahoo finance!. (2011). Retrieved from http://finance.yahoo.com/q/
is?s=SNE+Income+Statement&annual
2. Moore, F. (2011). Ifpi digital music report 2011. In Digital piracy – counting the cost (p. 16). ifpi. Retrieved from http://www.google.com/url?sa=t&rct=j&q=music%20live%20performance%20statistics%202011&source=web&cd=3&ved=0CGwQFjAC&url=http%3A%2F%2Fwww.ifpi.org%2Fcontent%2Flibrary%2FDMR2011.pdf&ei=8LW9T9GDFKme6AGz8YE3&usg=AFQjCNHmp2Wo23CVokQuU_en0hlbperKyg&cad=rja
3. White, M. (2012, March 22). Hope you didn’t buy a 3d tv last year read more: http://moneyland.time.com/2012/03/22/hope-you-didnt-buy-a-3d-tv-last-year/
4. Nielsen. (2010, March). Index of ownership definite purchase intent for 3dtv by region. Retrieved from http://www.marketingcharts.com/television/middle-east-leads-3dtv-ownership-interest-13861/nielsen-3dtv-regional-index-august-2010jpg/
5. Sony. (Designer). (2012). 3d world - created by sony. [Web Graphic]. Retrieved from https://news.sel.sony.com/en/sony_brands/release/Sony3DTV.html
6. Sony. (Designer). (2012). Television, home audio video press kit. [Web Graphic]. Retrieved from https://news.sel.sony.com/assets/tv
7. Clehman, K. (Photographer). (2010). Mj tv tribute guide. [Print Photo]. Retrieved from http://www.blackisonline.com/2010/06/mj-tv-tribute-guide/