Sony Pictures Profits Surge 56% to $281 Million in Q3 Thanks to Licensing, Home Entertainment and Crunchyroll

Sony Pictures Entertainment profits surged in the third quarter to $281 million, a 56% increase from the $179 million profit posted a year ago and an uptick from the second quarter’s $204 million. Revenues were up 5% to $2.5 billion.

The company said the unit, which comprises film and television, jumped due to increased licensing revenues and home entertainment sales, mainly due to the theatrical releases of 2023. Sony also pointed to the anime streaming service Crunchyroll as a bright spot, which increased paid subscribers.

That uptick was in spite of the fact that the film division dipped to $880 million, down from $895 million in the previous quarter. In the third quarter, Sony Pictures released Ridley Scott’s Apple-produced historical epic “Napoleon,” the rom-com “Anyone but You,” the horror film “Thanksgiving” and the faith-based film “Journey to Bethlehem.” While “Anyone but You” has gone on to become a theatrical success, the film got off to a slow start and only its first 10 days of release are counted in Sony’s Q3 earnings.

Sony has a lucrative licensing agreement with Netflix to stream its theatrical releases in the pay one window – meaning Netflix gets the streaming first bite of the apple. Indeed, Sony’s Jennifer Lawrence rom-com “No Hard Feelings,” which was released in June, hit Netflix in October and quickly began dominating the streamer’s Top 10. “Spider-Man: Across the Spider-Verse,” “Gran Turismo” and “Dumb Money” have also been staples in the Netflix Top 10 since hitting the streamer.

And TheWrap previously told you that home entertainment is on the rise, especially when it comes to leaning into the 4K Blu-ray collector’s market.

Elsewhere in Sony’s earnings, the Game & Network Services division rose 18% to $9.8 billion buoyed by PlayStation 5 console and “Spider-Man 2” game sales, while the music division rose in revenues, up 16% to $2.8 billion, and profit, which were up 21% to $506 million.

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