Australia Staff Meeting International Home Entertainment - - PowerPoint PPT Presentation

Australia – Staff Meeting

International Home Entertainment Marketplace

• A $25Bn category in 2011 – Still HUGE
• Declining from a $28Bn Category in 2008
• Total Transactions are static
• Rental incidence increasing & Sell Through declining
• Digital emerging as a viable alternative
• Piracy is increasing
• Operating cost are rising globally
• Studios are looking at how they operate

A CHANGING CONSUMER – A CHANGING CATEGORY

Importance of Australia to the Studio

• Progressive ‘Go to Market’ Approach
• Thought leaders
• A talented team
• #3 GP Territory in the world
• Retail Market decline of $300M since 2008
• SPHE Profit has declined 28% / $17.7M since 2008

Why we want to think differently

• The opportunity to lead change and be the change

agent in the market

• The desire to drive and influence the shape of the

future

• To continue to be the thought leaders in the industry
• First mover advantage is important
• Our Customers are asking and needing us to

change

A New Business Model

• A Joint Venture between Sony Pictures Home

Entertainment & Universal Pictures

• 50/50 Ownership between the two Businesses
• World class content from Sony and Universal
• Largest Home Entertainment business in

Australia

• February 1st 2012 go-live date
• Unique in the world

UNIVERSAL AND SONY PICTURES HOME ENTERTAINMENT AUSTRALIA

Operating Principles

• JV will sell, market, produce and distribute all Universal and Sony content – New

Release, TV, Special Interest and Catalogue, as well as Locally acquired content.

• One team in Sales, Marketing, Finance and Operations to deliver for both

Studios.

• The JV’s Board members will be drawn 50/50 from Sony and Universal.
• The MD will report to a Board of 3 Sony & 3 Universal Executives.
• Sony DADC will continue to undertake physical distribution and order

management on behalf of the JV, with combined volumes and efficiencies.

• The JV will design and manage all marketing programs and plans.
• The JV will negotiate and operate new Vendor and Customer terms.

What does it means for Us?

• Change
• A New Company
• A New structure
• A new team created from Universal &

Sony employees

• A huge opportunity and long term stability
• Real scale in the market

The Management Team

• Managing Director Jim Batchelor
• Strategy Director Catherine Tan
• Finance Director Peter Ayling
• Marketing Director Cindy McCulloch
• Sales Director Paul Courtney
• Operations Director Kate Bradbury
• Sony Project Director Michelle Black
• Board Member JV Kim Overall

High Level Timeline to Go-Live

• Announce Date 6th September
• Notify Customers/Vendors 6th September
• Team Appointed 16th September
• Vendor NegotiationsSept / Oct
• Customer Negotiations

Sept / Oct

• Systems Go Live 31st October
• Full team in Market Street

9th January

• GO LIVE 1st February

Next Steps

• Functional Meetings this afternoon
• 121 meeting with Directors
• Customers and Vendors notified this afternoon
• Press Release at 4pm
• Face to Face meetings with customers Weds &

Thurs

• Clarity on your role by 19th September

Q&A

Functional Breakout Meetings

• Sales Team – Chillout Room
• Marketing Team – Sunroom
• Finance Team – Level 19 Meeting Room
• Operations Team – Michelle’s Office
• IT Team – Dean’s Office
• Category Team & Fi – Kim’s Office