Sony Digital Entertainment, Japan

Anita  Elberse

Case | HBS Case Collection | March 2008 (Revised November 2008)

Sony Digital Entertainment, Japan

Abstract

It is late 2007. So-called cell phone ("keitai") novels have turned into an extremely popular form of entertainment-on-the- go in Japan, in particular among young, female readers. In fact, consisting mostly of love stories written by amateurs in short sentences and containing little plot or character development, cell phone novels republished in book form and even remade as movies have come to dominate mainstream media content. At media giant Sony, Ken Munekata, CEO of Sony Pictures Entertainment (SPE), and Atsushi Fukuda, President of Sony Digital Entertainment (SDE), are attempting to craft an adequate response. After establishing SDE as a 100% subsidiary of Sony Japan, they now develop a wide range of digital content offerings for mobile phone users, mostly original content "made in Japan"—including keitai novels. But can SDE's subscription model compete in a market dominated by free keitai novel offerings? And, more generally, do Sony's current keitai initiatives move the company in the right strategic direction? Allows for an in-depth examination of viable business models for established media companies competing in digital markets dominated by user-generated, advertising-supported content. Also enables an assessment of the economics of producing and distributing traditional films and books versus digital (cell phone) content.

Keywords: Books; Marketing Strategy; Open Source Distribution; Competition; Mobile Technology; Media and Broadcasting Industry; Publishing Industry; Telecommunications Industry; Japan;

Format: Print

20 pages

Educators Purchase

Citation:

Elberse, Anita. "Sony Digital Entertainment, Japan." Harvard Business School Case 508-071, March 2008. (Revised November 2008.)

Should the ABN AMRO World Tennis Tournament gamble most of its player budget on superstar player Rafael Nadal, even after the event’s previous two editions saw Nadal and Roger Federer pull out at the last moment due to injury, leaving the tournament without any top-five players? That is the question that Richard Krajicek, former Wimbledon champion and current tournament director, is debating with Jolanda Jansen, the director of the venue that hosts the event. It is June 2017, and earlier in the day, Nadal won the French Open (“Roland Garros”) for a record tenth time. Krajicek’s plan for the upcoming edition was to focus his recruiting efforts on five exciting, mostly younger, players, and assemble a group of top-20 players around them—but after Nadal’s record-breaking performance, Krajicek is now considering pursuing the Spanish superstar for the 2018 tournament after all. What is the best course of action?

Roger Federer, widely regarded as the best tennis player in the history of the sport, walked onto the court to thunderous applause during in the second edition of the Laver Cup in September 2018. Named after tennis legend Rod Laver, the Cup pitted many of the greatest players from Europe against those from the rest of the world. Federer was more than one of the Laver Cup’s main stars—he was an owner and co-creator. In fact, the idea for the event had originated in his boutique company TEAM8, which he co-founded in 2013 with his agent and business partner Tony Godsick. The Laver Cup’s success had not gone unnoticed in the world of tennis. With traditional tennis tournaments such as the Davis Cup attracting new investors and with governing bodies such as the Association of Tennis Professionals planning to relaunch their team event, the competition for top players and for desirable slots on an already very full tennis calendar was stronger than ever before. Was TEAM8’s Laver Cup well positioned for long-term success?

In July 2013, composer, writer, actor and rapper Lin-Manuel Miranda, director Tommy Kail, and producer Jeffrey Seller met to discuss how to launch Hamilton, a new musical based on the life of the first Treasury Secretary of the United States, Alexander Hamilton. With a hip-hop score and an ethnically diverse cast that looked nothing like their historical counterparts, Hamilton was an unlikely candidate for success on Broadway. The trio needed to decide which of two popular routes was best to bring their new musical to Broadway: either take the production straight to Broadway in a 'cold open,' or strike an 'enhancement deal' with a non-profit theater so the musical could be tested before mounting a more expensive Broadway run. Could a hip-hop musical about a largely forgotten Founding Father be a Broadway blockbuster? And if so, what was the right next step in bringing Hamilton closer toward that goal?

Faculty & Research

Sony Digital Entertainment, Japan

Abstract

Citation:

About the Author

More from the Author