How Sony Plans to Profit from Older Movie Releases

Sony is aiming to capitalize on films that initially underperform at the box office but gain popularity later. By exploring new monetization strategies, the studio seeks to turn past disappointments into profitable assets as audience interests evolve.

Rethinking Success: Sony’s Gamble on Streaming Flops

In a striking move that could reshape the calculus of Hollywood, Sony Pictures Entertainment is attempting to rewrite how value is measured in the post-cinema era. Unlike most of its competitors, which operate their own platforms, this subsidiary of Sony Group Corporation finds itself uniquely reliant on third-party streaming giants such as Netflix. Now, faced with the unpredictable ebb and flow of theater attendance, Sony is seeking to transform its so-called “flops”—films that failed to draw crowds in cinemas—into lucrative assets for the digital age.

A Shift from Box Office to Streaming Performance

Historically, deals between Sony and platforms like Netflix were anchored in domestic theatrical revenue. Yet, as recent cases illustrate—take “Madame Web,” for instance—a disappointing box office run does not preclude a film from amassing an impressive viewership online. Sources including Bloomberg suggest that Sony now wishes to recalibrate compensation models, linking payments not solely to initial cinema figures but also to tangible metrics such as streaming views and new subscriber acquisitions.

Navigating a Complex Negotiation Landscape

Several factors explain this push for change:

• The reach of streaming can outstrip even the widest theatrical releases.
• Titles once written off may enjoy unexpected success online.
• The collapse of traditional formats (DVDs, VOD) pressures studios to find new revenue streams.

Convincing streaming services to embrace these adjustments remains a formidable challenge. For industry leaders like Netflix, which already employ aggressive negotiating tactics with all major studios—from Universal Pictures to Warner Bros. Pictures—the prospect of granting higher payouts for commercial disappointments is met with skepticism. Establishing such precedents would mean systematically reassessing any title capable of generating buzz post-release.

An Uncertain Path Forward for Hollywood Economics

The broader backdrop is one of instability: gone are the days when each film reliably yielded immediate returns at the box office. Now, as studios scramble for ways to offset risks and capitalize on every possible avenue, some observers question whether Sony’s approach is a genuine pivot or simply another bid to weather ongoing volatility. Whether this bold bet proves sustainable—or merely underscores the enduring fragility of today’s entertainment landscape—remains very much an open question.