Keep an eye on: Sony

September 4, 2007

sony-connect.JPGWill the fifth time be the charm? The sixth? Sony is readying an online video service rival to the Apple’s iTunes, seeing video — not music — as its best (only?) foot forward in playing a larger role in digital media, the Wall Street Journal reports, quoting unnamed sources.

The company that invented mobile music with the Walkman, but lost the market to Apple’s iPod, recently dumped its Connect music service, conceding further defeat to Apple. Part of the problem in competing in digital media has been the very reason why Sony appears well positioned: They own the hardware and the entertainment. Competing interests between its electronics division aiming to give consumers what they want and content divisions looking to prevent piracy have hurt one of the world’s largest electronics companies.

Sony CEO Howard Stringer thinks the time is right to flex the power of its PlayStation 3, PlayStation Portable and Bravia television line to take on Steve Jobs.

Eyeing how Apple came to dictate prices in a devastated music industry, Hollywood and TV content owners have been reluctant to repeat the mistake. Last week, NBC Universal said it had no intention to renew its contract to offer shows on iTunes by the end of the year.

Just one problem with Stringer’s plan: the PS3, PSP and Bravia are far from market dominants despite garnering critical acclaim. Sony also must do what it has failed in the past 10 years – get its fractious corporate fiefdoms to get along. Moreover, Microsoft has a head start with its Xbox Live service, which already lets consumers rent high and standard definition versions of new Hollywood releases.

Good luck, Sony.

(Wall Street Journal)

Keep an eye on:

  • Google Phone rumors abound. More fact than fiction? (GigaOM) (Boston Globe)
  • Virgin Media hires Spencer Stuart to find new chief. (FT)
  • Sony Ericsson president Miles Flint steps down. Sony Electronics USA Chairman Dick Komiyama to take over. (Reuters)
  • In-game advertising company adopts TV ad model
  • IFA: The $100 billion-plus TV industry watch with envy the success of consumer electronics makers as they wait frustrated, for the next big technology push. (Reuters)
  • Division over next-generation DVDs deepening. Awaiting one clear cut winner in the next gen DVD wars? Keep waiting. (Reuters)
  • Online shrines for ‘death networking.’ (Reuters)
Comments

Sony sold more LCD TVs last year than any other electronics company. Get your facts straight.

Posted by Harvey | Report as abusive
 

Harvey,
Thanks for writing in. Sony did not actually sell more LCD TVs last year than any other electronics company, but they generated more revenue than its rivals from it.

Consulting DisplaySearch figures from 2006, Sony was the top LCD TV seller by revenue. But Samsung was the top LCD TV seller by units.

Here are the key graphs from DisplaySearch’s Feb. 13, 2007 release: “For the year, Sony led in LCD TV revenues for the first time with a 16% share followed by Samsung at 15% and Sharp at 11.5%.”

On a unit sales basis: “For the year, Samsung led with a 13.4% share followed by Philips at 13.0%, Sony at 11.6%, Sharp at 11.3% and LGE at 7%.”

Posted by Kenneth Li | Report as abusive
 

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