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Sony is preparing to launch a challenge to iTunes' video service, according to a story published Tuesday in the The Wall Street Journal. The Journal reported that Sony's effort would employ the PlayStation 3, the PlayStation Portable and Bravia high-definition televisions to offer some kind of download service.
The story, which, coincidentally or not, appeared the day before Apple
Skeptics would have a point. This is hardly the first time Sony has discussed a new digital download effort. Last week, the company finally
"The PSP had a shot to define the mobile market, and that opportunity has now passed," said James McQuivey, an analyst with Forrester Research. "Unless the company can find a new approach, something that moves the ball forward, I don't see how this latest video effort is going to go in Sony's favor."
But before pundits ignore the latest nuggets of Sony news in order to focus on Wednesday's Apple product launch (which most observers
Sony could conceivably integrate Internet video across the PSP, the PS3 and Bravia high-definition TVs. The company owns Sony Pictures, one of the top motion picture studios, which could provide video customers plenty of content. In addition, that studio connection is now all the more attractive as it appears Apple's relationship with Hollywood is shakier than ever. Last week, NBC Universal announced that it
Right now, Sony is trying to work the kinks out of the PS3 and PSP. When the company first introduced the PSP, it
That problem has been
Sony has also enabled the PS3 to record content that can be transferred to the PSP and confirmed that a video download store for the PSP is on its way. Last week, Sony
One of the biggest challenges confronting Sony, of course, is how it will bind a video game machine, portable device and TV set into a cohesive video offering.
"The problem Sony faces is that very few homes will have enough of those devices to build allegiance to Sony," McQuivey said. "The relationship with the customers is going to be fractured. The gamers are going to be in one place, and the Bravia owners in still another. Bringing them together and building loyalty will be a challenge, especially considering that early adopters have had exposure to iTunes for some time now."
But how important is it for Sony to catch Apple in the video market? While Apple is No. 1 in video downloads, revenue for the sector is worth about $300 million right now, McQuivey said. Of that amount, Apple likely generated about $200 million, he said. While the market is sure to get much bigger, just how much bigger is anyone's guess.
Nobody knows whether it's more profitable to offer pay-per-view content or give it away and support a video service through advertising. Plenty of TV networks have begun offering clips of shows on their own Web sites but attach ads. If this practice becomes widespread, it could undercut Apple's offering.
It seems apparent that music will remain Apple's bread and butter for a long time to come, and revenue from video sales represents only a tiny part of Apple's revenue.
And believe it or not, some people are still rooting for Sony. Chris Cardone, for example, an anesthesiologist from Cincinnati, is an avid iPod video viewer, or at least he was before he got his hands on the iPhone's bigger screen. He thinks consumers can only benefit from more competitors joining the video sector.
"I would prefer that there's competition," Cardone said. "At iTunes, I don't mind paying $1.99 for a show without ads. It's more efficient and takes up less storage, but maybe Sony or someone else can appeal to customers who might see price as a priority. I wouldn't mind having more than one choice."
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Yep. That and the idea that a Sony customer should be a Sony only customer. Back in the 90's I was on that ship because Sony made things that cost right and worked great. Of course that was before DRM and internet piracy, and Sony seems to be just one step behind the RIAA in terms of respecting their customers in that arena.
No more for me, thanks.
Like any business, Apple wants to make money from selling music and videos. Unlike Sony, Apple makes money from iPod sales regardless of profit from the online sale of music and video.
Too bad Sony's own proprietary system locked them out of this business model.
"I would prefer that there's competition," Cardone said. "At iTunes, I don't mind paying $1.99 for a show without ads. It's more efficient and takes up less storage, but maybe Sony or someone else can appeal to customers who might see price as a priority. I wouldn't mind having more than one choice."
What does Sony have to gain from selling its music or videos for less?
What can Sony gain from selling their music or videos for more?
Who would buy Sony music or videos if they could only be played on a PSP or with proprietary Sony software?
Sony has nothing to win.
I think the perfect technology would be to put a Sony root kit in a Xbox 360. When it burst into flames, I would get lots of exercise extinguishing my house. This could be a better workout than my Wee!
Their track record isn't very good in this area, I'm afraid. It should be interesting to see what develops.
Extra Extra, read all about it!
The only thing SONY can offer me now is a huge apology and a large sum of money and I know that's not happening. So goodbye SONY. I hope you go bankrupt.
PS3 that are ok. THeir latest title LAIR, the 18 million dollar epic
game, has all but bombed. The PS3 is still too expensive for the
average man to go out and buy, and the online service pales in
comparison to Xbox LIVE. Worry about the dam games please.
Sony, give it up after Connect Music do you think anyone will be stupid enough to buy hardware "slaved" to a Sony service? Especially one where the hardware won't be just a cheap MP3 player!
Learn from Toyota, you work for the customer...not the other way around.
Most people who might be interested in video downloads will look at the PS-3's on screen interface, then the game pad/remote, then the price tag of the PS3, and just say forget it.
Sony still doesn't get it. To sell a simple thing like video downloads through a complex, undecipherable gadget like the PS3 is just plain stupid.
Folding@Home), when I insert a DVD or blu-ray disk, it
automatically starts to play it.
Combined with the BD/Playstation remote control, it's very
nearly indistinguishable from a stand-alone player. And it has
many pluses over a standalone player, including gaming, the
ability to apply updates automatically, and the ability to serve as
a media endpoint.
I don't use it as the latter because it's a pain to set up UPnP
servers on my Macs and I have an ?tv anyway.
Why don't they come up with something on their own.
Does the Oriental mind just copy other people, then say made in
Japan. Most creative people are a pain the ass, as is Steve Jobs.
But he's our pain in the ass. Mac's Rule.
Anything to challenge Apple or any other dominate industry players is a good thing for consumers IMHO.
"competitors" has offered less, has been more inconvenient to
use, and has demanded more of my money in return for their
services.
It's getting downright comical, now, but the One Thing that the
vast majority of aPpLe hAtorZ have failed to take into account, is
that Apple isn't "In Control" of anything. Apple does not create
the content that they resell. Apple has dozens of competitors.
Apple is in the drivers seat because they are the option that the
CONSUMERS CHOOSE TO USE.
It really is that simple, folks. Apple makes things easy to buy
things at a price that consumers deem to be fair, so we choose
to employ Apple's services.
but a safe one, I think.