Sony warns sales will be hit by Hollywood strikes
Japanese tech giant Sony lowered its full-year sales forecast today warning that the ongoing Hollywood strikes will wreak havoc with movie production schedules.
In a trading update, Sony revised its annual movie sales forecast down 50bn yen to 1.47trn yen (£8bn).
Sony blamed the potential lower revenues on the impact of actors and writers staking it out on picket lines in Hollywood. The strikes are expected to delay release dates of upcoming movies and television shows.
Since May, the American film industry has been starring in a drama of a different kind as it takes part in a series of ongoing protests over fair pay and job protection from AI technology.
The electronics company said, however, that foreign exchange rates may go some way in offsetting the decline.
First quarter results revealed operating income was down nearly 35 per cent year on year.
Despite lower expected sales, Sony raised its full-year profit forecast up by 20bn yen to 860bn yen (£4.7bn).
Shares in the company dipped 1.2 per cent on Wednesday morning.
Sony’s fortunes in its music business have provided a silver lining.
SZA’s ‘SOS’ album, Miley Cyrus’ ‘Endless Summer Vacation’, and Harry Styles’ ‘Harry’s House’ were among the standout music releases helping sales surge over 50 per cent compared to the same period last year, reaching a total of 358bn yen (£1.96m).
Sony put this success down to higher sales in recorded music and music publishing, largely from the growth in paid subscription streaming services.
While sales of gaming and financial services jumped 168 per cent and 465 per cent respectively, their operating incomes were down on last year.