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
Warner Bros rejects Paramount’s latest bid, gives seven-day deadline for revised offer
Studio seeks bid above $31 a share while backing Netflix merger
NEW YORK: Warner Bros Discovery has rejected Paramount Skydance’s latest hostile bid of $30 a share but granted the suitor seven days to submit a “best and final” offer, even as it reiterated its support for a merger with Netflix.
In a letter sent on Tuesday, Warner Bros said Paramount had informally floated a higher price of $31 a share, but the board did not consider the proposal reasonably likely to result in a superior transaction to its existing Netflix deal.
Paramount has until February 23 to improve its offer. Under the merger agreement, Netflix is entitled to match any competing bid, Warner Bros said.
“Our board has not determined that your proposal is reasonably likely to be superior to the Netflix merger,” chairman Samuel DiPiazza Jr and chief executive David Zaslav wrote to the Paramount board. “We remain fully committed to our transaction with Netflix.”
Paramount’s offer values Warner Bros at $108.4 billion, while Netflix has agreed to pay $27.75 a share, valuing Warner Bros’ studio and streaming assets at $82.7 billion. Warner Bros plans to spin off its Discovery Global cable networks: including CNN, TLC, Food Network and HGTV, into a separate listed company ahead of the merger vote scheduled for 20 March.
Warner Bros said it expects any acceptable Paramount bid to exceed $31 a share, noting that a Paramount adviser had suggested higher pricing was possible if talks reopened.
Shares of Paramount rose 6 per cent, while Warner Bros Discovery gained 2.3 per cent. Netflix shares fell 1.4 per cent.
The move marks a shift after months of resistance. Paramount has said Warner Bros previously failed to engage meaningfully on six approaches before announcing its Netflix deal in December. A revised Paramount proposal in January, backed by a $40 billion personal equity guarantee from Larry Ellison, father of Paramount chief executive David Ellison, was also rejected.
Warner Bros now faces growing pressure from activist investor Ancora Holdings, who opposes the Netflix transaction. Paramount has separately sought board representation, with Pentwater Capital backing its bid.
The deal is expected to face regulatory scrutiny over competition concerns, with Paramount and Netflix engaging with authorities including the US Department of Justice.
