Sony Corp announced the retirement of 112,1 billion yen ($976 million) in the cinema segment for the quarter ended in December, as the gained popularity the services of online broadcasts has drastically reduced the demand for DVD.
According to Reuters, the announcement followed a decline the company forecast profit from operations of DVD, blu-ray and other home entertainment amid a General market contraction.
Sony seeks to revive its film industry. In November, financial Director of the Japanese conglomerate, Kenichiro Yoshida said the reversal “occurs, but it takes time to implement.”
In January, the company announced that Michael Lynton, the head of film and television Sony Entertainment, will retire in February. In addition, in a recent statement, Sony announced that it will reduce the share in the operator of online medical service Inc M3 to 34% from 39.3% in an attempt to improve the financial situation.
The company expects that the sale of the stake will allow it to receive about 37 billion yen operating profit in the fourth quarter of the fiscal year, which ends March 31.