Hollywood
Sony’s subscription story hits pause in a paid-user pullback
MUMBAI: When the music keeps playing but fewer listeners stay on the dancefloor, it’s hard not to notice. Sony Group Corporation’s latest financial disclosures point to a sharp slowdown in paid subscriber momentum across its platform businesses, tempering an otherwise steady revenue performance.
At Sony Pictures Entertainment (SPE), operating income fell 11 per cent year on year to Rs 1,635 crore, down from Rs 1,850 crore a year earlier. Quarterly sales declined 12 per cent to Rs 19,050 crore, compared with Rs 21,740 crore in the same period last year, reflecting softer performance across films and television.
The pressure was most visible in motion pictures. Revenue from theatrical, home entertainment and streaming slid 7 per cent to Rs 6,575 crore, down sharply from Rs 9,200 crore a year earlier. While Sony released five theatrical titles during the quarter, the comparison was weighed down by the absence of a breakout hit like Venom: The Last Dance, which alone generated roughly Rs 3,970 crore in the corresponding quarter last year.
Television production revenues also weakened. The TV unit posted sales of Rs 5,960 crore, a 10 per cent decline from Rs 6,620 crore a year ago, despite a steady pipeline of scripted shows and long-running broadcast staples such as Jeopardy! and Wheel of Fortune. The numbers underline a broader challenge facing global studios: strong content output does not automatically translate into subscriber growth or retention.
The media networks business offered some relief, with revenue rising 10 per cent year on year to Rs 6,430 crore. Sony ended calendar 2025 with 535.2 million subscribers across its television channels, but the latest quarter signalled slower paid subscriber momentum across platforms, as audiences increasingly reassess subscription value amid rising costs and abundant choice.
The same theme echoed in Game & Network Services. Operating income rose 19 per cent to Rs 11,080 crore, helped by higher software sales and currency benefits. However, segment revenue dipped 4 per cent, and PlayStation 5 hardware sales fell to 8 million units, down from 9.5 million units a year earlier, a notable drop in what is typically the strongest quarter for console sales. While PlayStation Network monthly active users climbed to 132 million, up from 129 million, engagement growth has yet to fully offset softer paid conversion and hardware momentum.
In contrast, Sony’s music division struck a stronger chord. Quarterly sales climbed 13 per cent to Rs 42,320 crore, while operating income rose 9 per cent to Rs 8,300 crore, driven by robust streaming and catalogue performance across global artists. Music once again emerged as the group’s most resilient entertainment pillar.
Yet beneath the topline, Sony acknowledged a material drop in paid subscribers across parts of its networked and digital entertainment platforms, reflecting tougher consumer choices and intensifying competition.
The impact was most visible in Sony’s Game & Network Services and Pictures segments, where growth in digital services revenue was partly offset by slower subscriber additions and higher churn. While digital software and network services revenue still grew, hardware sales declined and platform engagement softened, signalling pressure on recurring subscription income
Sony’s filings show that although network services revenue rose during the period, the pace lagged earlier quarters, underlining the challenge of retaining paid users in a market increasingly crowded by global streaming, gaming and short-form content alternatives. In the Pictures business, direct-to-consumer revenues were weighed down by weaker subscriber traction, even as traditional media networks delivered modest gains.
The broader backdrop is changing consumer behaviour. With price hikes, subscription fatigue and a flood of competing platforms, users are becoming more selective about what they pay for and what they drop. Sony’s results suggest it is not immune to this shift, even as it continues to invest in content, technology and platform upgrades.
That said, Sony’s diversified portfolio offered a cushion. The Music segment posted solid growth, supported by streaming and publishing revenues, while Imaging & Sensing Solutions delivered one of the strongest performances of the year, helped by demand from smartphone and automotive customers
For now, the message is clear, Sony’s engines are still running, but the subscription gears need tightening. In an era where loyalty is rented month-to-month, even the biggest platforms are learning that keeping users paying can be harder than getting them to sign up in the first place.
Hollywood
Trump invested over $1.1m in Netflix bonds at the peak of Warner Bros bidding battle
Financial disclosures show U.S. president also bought Warner Bros Discovery debt during high-stakes media takeover race.
WASHINGTON: New government financial disclosures show that U.S. president Donald Trump purchased more than $1.1 million worth of bonds issued by Netflix over the past three months. The transactions occurred during a period when Netflix was engaged in a competitive bidding war for Warner Bros. Discovery, a potential merger that the Trump administration had publicly criticised on antitrust grounds.
Between December and January, the president acquired Netflix bonds valued between $1.1 million and $2.25 million. The bonds carry a 5.375 per cent interest rate and are scheduled to mature in November 2029. Financial disclosures also revealed an additional investment in Warner Bros Discovery bonds. The purchase was valued between $500,002 and $1 million, with the debt reportedly bought at roughly 92 cents on the dollar. The bonds are now trading at around 95 cents on the dollar, leaving the position currently in profit.
The timing of the investments has drawn scrutiny because the administration had been openly critical of Netflix’s market activities at the time. While the president’s trust was purchasing the debt, the administration reportedly pressured Netflix to remove board member Susan Rice and expressed concerns that a Netflix–Warner merger could harm competition.
The White House has dismissed conflict-of-interest concerns, stating that the president’s assets are managed independently by his children. Spokesperson Anna Kelly said U.S. presidents are legally exempt from the conflict-of-interest laws that apply to other federal officials.
Despite the financial interest, Netflix ultimately lost the race to acquire Warner Bros Discovery. Paramount Skydance secured the deal on 27 February with a $110 billion offer. The acquisition was backed by Larry Ellison, who guaranteed $40 billion to support the bid, while major lenders including Bank of America, Citigroup and Apollo Global Management provided $39 billion in financing.
The final acquisition leaves the combined Paramount entity carrying roughly $85 billion in debt, while Netflix withdrew its bid roughly two weeks before the official disclosure report was released.
