Sony Pictures Networks India is looking to drive organic growth as well as increase its market presence through strategic partnerships in FY25, MD & CEO NP Singh said in an internal newsletter addressed to employees. A copy of the newsletter has been reviewed by FE.
Outlining his business strategy for the future, Singh, a media veteran who has been with Sony for a decade now, said that FY25 is likely to be a challenging year for the company after it failed to merge with Zee earlier.
The market is also consolidating, with rivals Disney and Reliance-backed Viacom18 now coming together in a joint venture valued at $8.5 billion. Singh said that Sony would tackle challenges head-on and with a strong resolve.
“Our goal is to captivate audiences, boost our subscriber base and revenue through impactful content. We are channelling investments into new shows, including those on SonyLiv,” he said, adding that the experiences and lessons from FY24 were stepping stones for the future.
Singh’s roadmap for Sony comes a day after Punit Goenka, Zee’s MD & CEO, took a voluntary pay cut of 20% in line with his goal of driving frugality, optimisation of business operations and a sharp focus on quality content.
Goenka had laid out his business strategy for Zee soon after Sony terminated the $10-billion proposed merger in January citing non-fulfilment of closing conditions. Goenka had indicated that Zee would work towards achieving an 8-10% revenue growth and 18-20% operating margin target by FY26 by cutting costs, reducing overlaps and enhancing quality of output. In the last two months, the company has followed this brief.
“The organisation is sharply focused on adopting a frugal approach, as we move forward towards the set goals for the future, I intend the required change in mindset to begin from my desk,” Goenka said on Tuesday.
Singh noted that Sony was taking a few significant steps to boost its sports content by acquiring the media rights to New Zealand Cricket (NZC) home series, featuring the men’s (Blackcaps) as well as women’s (White Ferns) matches, in India and associated territories for the next seven years.
This is the second major sports rights acquisition by Sony after the merger collapse in January; with the deal size pegged at around $100 million (`830 crore). The NZC matches are in addition to existing media rights that the broadcaster holds for the England and Sri Lankan cricket boards.
In February this year, the broadcaster had renewed its exclusive media rights deal with the Union of European Football Associations (UEFA) for another three seasons until 2026-2027. The deal size was pegged at around $40 million (`330 crore), according to industry sources.
Following the renewal, Sony Sports Network now holds rights to most of the popular football events, excluding the English Premier League (EPL) and FIFA tournaments apart from UEFA. Media rights for the 2026 FIFA World Cup, however, are yet to be sold.