Sony Pictures Home Entertainment Ups Nine-Month Sales 28% to $567 Million

Sony Pictures Home Entertainment Feb. 2 disclosed it generated $567 million in revenue for the nine-month fiscal period ended Dec. 31, 2022. That’s up more than 28% from revenue of $442 million during the previous-year period. Third-quarter revenue declined nearly 17% to $145 million, from $174 million in the previous-year period.

Spider-Man: No Way Home was the studio’s top-selling retail release in 2022 following the movie’s electronic sellthrough release on March 22, 2022, and subsequent packaged-media release on April 12, 2022.

No Way Home was the top-grossing theatrical release in 2021 and remains the No. 7 all-time grossing theatrical release with more than $1.92 billion in ticket sales.

Overall, Sony Pictures operating income plummeted 83% to $197.4 million, from operating income of $1.16 billion during the previous-year period. Revenue dropped 28% to $2.57 billion, from $3.58 billion in the previous-year period.

Sony attributed the operating income/revenue decline to unfavorable comparisons with last year’s quarter, which included Spider-Man: No Way Home and Venom: Let There Be Carnage revenue, among other releases.

Sony’s top-grossing 2022 theatrical release, Uncharted, generated $401.7 million in global revenue, including $148.6 million across North American screens.

Sony Pictures, Netflix Ink Exclusive U.S. Movie Distribution Deal

In a throwback to a former landmark deal between Netflix and Walt Disney Studios, Sony Pictures Entertainment has signed a distribution deal with the SVOD behemoth for exclusive U.S. access to Sony theatrical releases following the box office and home entertainment windows.

The agreement, which begins in 2022, will replace Sony’s existing digital deal with Lionsgate-owned Starz. Sony, unlike other major studios, does not have its own branded streaming video service. Financial terms were not disclosed.

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The deal will include upcoming Sony releases Morbius, starring Oscar winner Jared Leto, and Uncharted, featuring “Spider-Man” actor Tom Holland. Sony, which will also produce movies for Netflix as part of the streamer’s 60+ movie releases per year, will give Netflix access to its lucrative Spider-Man franchise.

Other tentpole titles include Where the Crawdads Sing and Bullet Train, which will be among the initial 2022 offerings. They will be followed by continued entries in Sony Pictures’ rejuvenated slate of IP, including the sequel to Oscar-winning Spider-Man: Into the Spider-Verse and several more SPE films featuring Marvel characters, including future installments of Venom and Spider-Man; and expected follow-ups for the “Jumanji” and “Bad Boys” franchises. Netflix will also license rights to select titles from SPE’s vast movie library.

“This not only allows us to bring Sony’s impressive slate of film franchises and new IP to Netflix in the U.S., but it also establishes a new source of first run films for Netflix movie lovers,” Scott Stubler, head of global films at Netflix, said in a statement.

Sony will also offer Netflix a first look at any films it intends to make directly for streaming or decides later to license for streaming, and Netflix has committed to make a number of those films over the course of the deal. Any such direct-to-streaming projects will be additive to SPE’s full 15-20 title theatrical film slate, which will continue at its current volume. Netflix recently acquired rights to Sony animated comedy The Mitchells vs. The Machines.

“Netflix has been a terrific partner as we continue to expand our relationship,” said Keith Le Goy, president of worldwide distribution and networks for Sony Pictures Entertainment. “This exciting agreement further demonstrates the importance of that content to our distribution partners as they grow their audiences and deliver the very best in entertainment.”

Netflix’s 2016 deal with Disney afforded the streamer exclusive access to the studio’s movies — in a deal that reportedly cost Netflix $350 million annually. That turned out to be a boon for Netflix as it had exclusive rights to Disney’s burgeoning Marvel Studios’ titles — a reality that help skyrocket subscriptions. Disney did not renew the agreement when it decided to launch branded SVOD platform Disney+.