Sony has taken a hefty writedown on the value of its movie business as the unit suffers from falling DVD and home entertainment sales.
It has taken a 112bn yen ($1bn; £780m) charge, citing “an acceleration of market decline”.
The rise of online streaming services has hit demand for traditional media such as DVDs and blu-ray discs.
Sony’s movie division has also struggled, with recent flops including an all-female Ghostbusters sequel.
Sony had warned earlier this year its movie division could post more losses.
The Japanese firm, which reports its third-quarter results on Thursday, is still assessing whether the impairment charge will affect future earnings.
It plans to offset the loss by selling shares in medical web service M3.
The head of Sony’s entertainment business, Michael Lynton, recently announced he would be stepping down in February after more than a decade at the firm.
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Source: BBC