Sony Corp is taking a major bet on a multibillion-dollar push into producing more original content, as part of a “creation shift” it says should bring it a greater share of the $3 trillion entertainment industry.Chief executive Kenichiro Yoshida told the FT that Sony needed to shift its focus from distribution to the creation of intellectual property. noting: “We have the technology and creation is the area where we like and where we can contribute the most.”Under Yoshida, the group has spent $10 billion over the past six years to build its portfolio of games, films and music — these segments that now account for 60 per cent of its annual revenue.Until now Sony has sold its film and TV rights to other streamers — a relationship the Japanese group wants to maintain as it involves itself more deeply in content production. “By putting our efforts in creation, that also means that we will work with partners on the distribution side. So, I think we have developed very good relationships with the so-called Big Tech players,” said Yoshida.Sony has leveraged its media businesses to better profit from its acquired intellectual property, with hits in recent years including The Last of Us, which was converted from a PlayStation game into a hugely popular HBO series.Sony’s top executives argue that the group needs to be more directly involved in creating content at an earlier stage to get higher returns. “Whether it’s for games, films or anime, we don’t have that much IP that we fostered from the beginning,” said chief financial officer Hiroki Totoki, who is widely seen as Yoshida’s successor. “We’re lacking the early phase (of IP) and that’s an issue for us.”Sony recently tried to transform its position in distribution with a failed joint bid for Paramount.
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