Sony said Monday it will book a write-down of 112.1 billion yen ($976 million) over losses related to its movie operations amid the anticipated shrinking of the DVD and Blu-ray disc market.

The Japanese electronics giant had forecast a 270 billion yen group operating profit and a 60 billion yen net profit for fiscal 2016 ending in March but is currently assessing the impact of the write-down, the company said. Sony will announce the impairment loss when it releases its earnings for the April to December period on Thursday.

The impairment losses are related to Columbia Pictures Entertainment, now Sony Pictures Entertainment Inc., acquired in 1989. The write-down comes as the operations and assets of the movie-making subsidiary of Sony are of lower value than originally determined.

"The impairment charge resulted from a downward revision in the future profitability projection for the Motion Pictures business within the Pictures segment. The downward revision was primarily due to a lowering of previous expectations regarding the home entertainment business, mainly driven by an acceleration of market decline. Underlying profitability projections of film performance were also reduced, but the adverse impact of that reduction is expected to be largely mitigated by measures that have been identified to improve the profitability of the Motion Pictures business," Sony said.

Spny expects profit in the Pictures segment overall to grow due to measures currently being undertaken to improve the profitability of the Motion Pictures business and the expansion of the Television Productions and MediaNetworks businesses. The japanese company also underlined that the Pictures segment remains " an important business of Sony."