Following “Demon Slayer” and “National Treasure,” “Michael” Is a Huge Hit—Here’s Why Sony’s Entertainment Business Is Booming

A massive hit in Japan, grossing over 8.5 billion yen

Sony’s entertainment business continues its winning streak.

Last year, the animated film *Demon Slayer: Kimetsu no Yaiba the Movie: Mugenjo-hen Chapter 1: Gyokuzo Returns*, produced by Aniplex—a subsidiary of Sony Music Entertainment—was a massive hit. Additionally, the film *National Treasure* became the highest-grossing Japanese live-action film of all time.

While the excitement from those successes is still fresh, the film “Michael,” which depicts the life of the King of Pop, is now sparking a global phenomenon.

This film, which chronicles the life of Michael Jackson, has become the first biopic in history to surpass $1 billion (approximately 160 billion yen) in global box office revenue. It was released in Japan in June and has been a massive hit, grossing over 8.5 billion yen.

With one hit film after another, the Sony Group continues to generate substantial revenue. An employee at Sony Music described the atmosphere within the company as follows:

“There’s an atmosphere where we’re given the opportunity to take on challenges and are encouraged to do so. Also, the mindset that ‘if I’m having fun, I can entertain others’ is deeply ingrained. Whether it’s music or anime, we pursue what we love to the fullest and draw others in. I think ideas flow freely because we’re enjoying ourselves.”

Regarding Sony’s remarkable run of success, entertainment sociologist Atsuo Nakayama—who serves as chair of the Ministry of Economy, Trade and Industry’s Content IP Study Group and as a director of the All Japan Federation of Television Program Producers—offers the following analysis:

“I believe that both *Demon Slayer* and *National Treasure* became hits because they carefully preserved the creators’ artistic vision. *Demon Slayer* was produced by Aniplex, but by collaborating with an external animation studio called ‘ufotable,’ they were able to retain the strengths of the original manga.

On the other hand, *National Treasure* was a project that Toho had initially planned to fund but later backed out of; however, *Miliagon Studio*, a subsidiary of Aniplex, had secured the rights to it. Toho, which specializes in feature films, had let go of the original work, but Miliagon Studio gave the green light by valuing the voices from the production team who said, ‘We want to do this.’“Sony’s ‘eye for talent’ is remarkable—they invest in projects even when the film industry itself deems them ‘potentially risky at the box office,’ provided they truly understand the source material’s merits.”

Sony’s business doesn’t end with simply generating ticket sales (box office revenue). Behind its stellar performance lies a unique “circular” revenue structure that other companies cannot replicate. The greatest strength of Sony’s entertainment strategy lies in its ability to link a single IP (intellectual property) to every business within the group.

Take *Demon Slayer* as an example: Aniplex, a subsidiary of Sony Music Entertainment, leads the anime’s production and planning.From hit anime theme songs (the music business) to the sale of merchandise such as figurines and apparel, video game adaptations, and even global distribution via its own overseas anime streaming platform, “Crunchyroll,” Sony captures all revenue generated from the IP within its own group.

Realizing “One Sony”

Once a film becomes a hit, a system is in place that allows the company to generate revenue from users across all touchpoints, extending far beyond the movie theater.

“The Sony Group was originally bureaucratic and lacked coordination among its divisions, but when Kazuo Hirai (’12–’18) became president, he promoted ‘One Sony.’Then, during the tenure of President Kenichiro Yoshida (2018–2025), Sony Interactive—the games division behind the PlayStation—and Sony Pictures—the film division—achieved the fusion of games and movies.

The efforts accumulated over the past seven to eight years have led to the success of *Michael*, which resulted from collaboration between the film and music divisions. This demonstrates that Sony has rebuilt a foundation for cross-disciplinary cooperation over the past decade,” said Mr. Nakayama (cited above).

The mega-hit film *Michael* highlighted the strengths of the “One Sony” vision the company has been pursuing and generated synergies with its “music catalog” (rights to past songs).

Through years of negotiations and acquisitions, Sony now holds half of the master and publishing rights to Michael Jackson’s songs. Since the film’s release, the number of streams of Michael’s songs on streaming services worldwide—such as Spotify and Apple Music—has increased dramatically.

While the film business carries risks due to high production and promotional costs, the royalties from streaming plays continue to flow into Sony at an extremely high profit margin.Through the massive promotional power of “movies,” the company is driving up the value of its music assets and raking in huge profits from its high-margin music business—a “two birds with one stone” recovery model that is proving highly effective.

While taking on the risks of film production, the company maximizes the value of its proprietary IP through anime and music. Fans are moved by the movie, listen to songs on Sony’s services on their way home, and play Sony games once they arrive—this cyclical user experience is the very source that brings the company sustained and massive profits.

Once a giant in the consumer electronics industry, Sony has now transformed into a world-class comprehensive entertainment company that encompasses all major entertainment elements—including “movies,” “music,” “games,” and “anime”—under one roof.

Sony’s IP strategy ensures that hit works do not end as mere one-hit wonders but generate profits across the entire group. The success of the movie *Michael* appears to have once again demonstrated to the world the strength of the entertainment empire they have built.