Sony’s PlayStation division brings in roughly double the revenue of their music division, but the profit margins on physical hardware and game development are razor thin. Removing optical drives on the PlayStation going forward improves those margins. As does, frankly, ditching the Blu-ray/4K player line.
You may recall that, back in March, Sony basically sold a 51% stake in its home entertainment hardware manufacturing business to TCL (TVs, projectors, audio gear), whereby TCL takes over all of the management of that manufacturing, but the hardware keeps getting marketed under the Sony and Bravia brands.
My suspicion is that Sony asked TCL if they wanted to take on the optical disc player manufacturing as well, and they declined.
Do keep in mind something else that’s been reported widely recently: Key Sony patients for the Blu-ray format began to expire this year, and that will continue through 2031. That means Sony will no longer collect licensing royalty revenue for Blu-ray production from other format participants.
This also means you’re likely to see a crop of new Chinese manufacturers entering the market to produce affordable Blu-ray and 4K Ultra HD players—and indeed we have (think Krovatar, GIEC, DpBlue, Laser, etc). It’s likely that Sony and TCL have no interest in competing for Blu-ray and 4K UHD hardware market share with new hardware contenders, especially when the overall business is now basically a niche.
The good news is that if Sony exits this market, Panasonic’s position as the sole remaining manufacturer of 4K Ultra HD players may only get stronger. And who knows? One of these new brands could rise to the challenge and become the new Oppo for 4K cinephiles.
The bottom line is, outside of the PlayStation, I think Sony no longer really wants to be in the consumer electronics manufacturing business. Sony’s music licensing is their real cash cow, with double-digit profit margins. And I suspect Sony’s camera sensor CMOS business is gaining too due to premium smartphones.
In any case, we’ll have to wait and see what their actual press statement reveals. If they do officially exit the Blu-ray and 4K UHD player business, it’s certainly not the end of the road for either format. But it is a sign that the business, and the times, are definitely changing.
One last thing today: We’ve got the list of next 127 Lionsgate titles that are going to become available via Movies Anywhere (starting on 11/10):
- Vicky Cristina Barcelona
- Amityville: The Awakening
- Exposed (aka Daughter of God)
- Hellraiser: Judgment (2018)
- Death of Me
- Evil Under the Sun
- 5lbs of Pressure
- Slammin’ Salmon, The
- Precious Cargo
- Legacy of Lies
- Price We Pay, The
- Call Jane
- Hero Dog: The Journey Home
- Wicker Man (1973)
- My Penguin Friend
- Let Me In (2010)
- Swing of Things, The
- Escape Room
- Reprisal
- My Days of Mercy
- Crescent City
- Tulip Fever
- Blue Hill Avenue
- Mac and Devin Go to High School
- Final Score (2018)
- Dirty 30
- Beyond the Reach
- Leapfrog: Phonics Farm
- Dreamkatcher
- Last Moment of Clarity
- Hustlers
- Beyond the Law
- Men Who Stare at Goats, The
- Accidental Texan (aka Chocolate Lizards)
- Hearts of Darkness: A Filmmaker’s Apocalypse
- Crypto
- Dark Crimes
- Wash, The
- Madea’s Big Happy Family (Stage Play)
- Alpha & Omega
- Wraith, The
- For Colored Girls
- Jesus Music
- Bob Trevino Likes It
- Flashback (2021)
- Condemned, The
- Semper Fi
- Bleeding Steel
- First Kill
- Great Debaters, The
- Bay, The
- Jessabelle
- I Spit on Your Grave 3
- Careful What You Wish For
- War (2007)
- Flood, The (2023)
- Righteous Thieves
- American Sicario
- 10 Years
- Duel, The (2014)
- Penelope
- Rock Dog 3: Battle the Beat
- Lady Macbeth (2016)
- Endangered Species (2021)
- Speed Kills
- My Bloody Valentine (2009)
- Mob Cops
- What We Did On Our Holiday
- Lords of Salem
- Last Five Years, The
- Blood Brother
- Meet the Browns (2008 Feature Film)
- Murph, The Protector
- Tyler Perry’s Madea’s Tough Love
- Pumping Iron
- Open Water 3: Cage Dive (2017)
- Piranha 3DD
- Needle in a Timestack
- Dreamin’ Wild
- Las Pildoras De Mi Novio
- King of Thieves
- I Feel Pretty
- Aftermath (aka 478)
- Race for Glory: Audi vs Lancia
- Tracers
- Great Gilly Hopkins, The
- Command, The
- Rumble Through the Dark
- Trial by Fire (2019)
- Small Town Crime
- Squealer
- Bent
- Grandmaster, The
- American Fighter
- Cube
- Dear David
- Acts of Vengeance
- Angel of Mine
- Yellow Birds, The
- Killing Gunther
- Air Strike (2018)
- 2016: Obama’s America
- We Die Young
- Vatican Tapes, The
- Eve’s Bayou
- Red Violin, The
- I Still See You
- Emperor
- Wonderland (2003)
- Darkest Hour, The (2011)
- Tommy’s Honour
- Forger, The
- Northmen: A Viking Saga
- I Spit on Your Grave 2
- I Can Do Bad All By Myself (2002) (Stage Play)
- Friend Request (2016)
- September Issue, The
- Leapfrog: The Amazing Alphabet Amusement
- Vast of Night, The
- Mom and Dad
- Ginger Snaps
- My Best Friend’s a Vampire
- American Psycho 2
- Beyond Re-Animator
- Ginger Snaps 2
- Ginger Snaps 3: The Beginning
- Return of the Living Dead 3
So there you go!
Back with more soon. Stay tuned…
- Bill Hunt
(You can follow Bill on social media on Twitter/X, BlueSky, and Facebook, and also here on Patreon)