In 1997, SPE broke all-time records for a motion picture distributor, surpassing $2.3 billion in worldwide box office and $1.2 billion at the U.S. box office, as well as becoming the first company ever to gross more than $500 million at the U.S. summer box office. The record-breaking motion picture performance was powered by three consecutive blockbuster releases: MEN IN BLACK, the biggest-grossing film of the year and the highest-grossing movie in the company’s history to that date, AIR FORCE ONE and MY BEST FRIEND’S WEDDING.

The Screen Gems name was revitalized in 1999 as a new marketing label under SPE. Screen Gems focuses on films that fall between the wide-release movies traditionally developed and distributed by Columbia Pictures and those released by Sony Pictures Classics. Recent Screen Gems films include THE MOTHMAN PROPHECIES and RESIDENT EVIL.

Sony Corporation brought with it a strong belief that the future of the studio depended on a unique convergence between innovative consumer electronics products, improved connectivity and stimulating entertainment content. The next step in the evolution of the company resulted in the creation of Sony Pictures Digital (SPD) in 2000. The SPD group combines SPE's digital production with its online content and game services to deliver the next generation of entertainment.