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
WBD sets April 23 vote on $110bn Paramount Skydance merger
Investor approval key step, but regulators loom over mega media deal
NEW YORK: Warner Bros. Discovery has set April 23 as the date for shareholders to vote on its proposed $110 billion merger with Paramount Skydance, marking a crucial step in one of the biggest media deals in recent years.
The all-cash transaction offers WBD shareholders $31 per share, a hefty 147 per cent premium to its unaffected stock price, signalling strong intent to push the deal across the finish line. The company’s board has unanimously backed the merger and is urging investors to vote in favour.
Even if shareholders give the green light, the deal is far from done. Regulators in the United States and Europe are expected to scrutinise the merger closely, weighing concerns around competition and potential price impacts for consumers.
To keep investors on side, WBD has built in a safety net. If the deal is not completed by September 30, shareholders will receive a quarterly “ticking fee” of $0.25 per share until closure.
The proposed merger would significantly reshape the media landscape, combining the assets of Warner Bros. Discovery with those linked to Paramount Global and Skydance Media. It would also cement the growing influence of David Ellison, who has been steering Skydance’s aggressive expansion strategy.
“The WBD Board has been guided by the singular principle of securing a transaction that maximises the value of our iconic assets and delivers as much certainty as possible to our shareholders,” said Warner Bros. Discovery board chair Samuel A. Di Piazza Jr.. “This historic transaction will expand consumer choice and create new opportunities for creative talent.”
Warner Bros. Discovery chief executive officer David Zaslav added that the company is working closely with its counterpart to close the deal and unlock value for stakeholders.
With investor backing likely but regulatory hurdles ahead, the proposed merger is shaping up to be a defining moment for the global entertainment industry, where scale, content and competition are increasingly intertwined.
