or maybe..Sony Plans Convergence of Gadgets, Entertainment
Tuesday November 4, 6:47 pm ET
By Janet Whitman
NEW YORK -- In a move to bolster its position as a content company, Sony Corp. (NYSE:SNE - News; SNE) is putting a push on links between its consumer electronics gadgets and its music, movies and games assets.
As part of its new "convergence" strategy, outlined by Sony executives in Manhattan Tuesday, Sony will introduce this spring a new music distribution service to rival Apple Computer Inc. (NasdaqNM:AAPL - News)'s iTunes. Sony also will introduce new electronic devices for consumers to download music, which will start at about $60, much less than the $300 starting price for Apple's iPod, executives said.
Also as part of this new effort, Sony late next year plans to launch a PSP, or PlayStation Portable, which executives described as a walkman for the 21st century. The portable device will have a bundle of capabilities, such as allowing users to watch DVDs and listen to music.
Sony has put in place a working group to develop more links between its entertainment assets and its consumer electronic products.
The new communication between all of Sony's units, part of the struggling consumer electronic company's turnaround strategy unveiled last week, is "a significant milestone," said Howard Stringer, chairman and chief executive of Sony Corp. of America and vice chairman of Sony.
Separately, Mr. Stringer said Sony is seriously discussing merger and acquisition opportunities, including a possible merger of its music business with a rival. He added, however, that the music business isn't for sale and that Sony would like to maintain control in any deal.
He declined to comment on any specific merger talks.
Sony said it expects to reduce jobs in its music and pictures businesses by 1, 700 by the end of March 2006 from March of this year.
With the restructuring of its entertainment business, the company anticipates $600 million in annual savings.
Meanwhile, Sony is cutting costs at its music business by putting fewer tracks on some compact discs, rather than specifically cutting the costs of the CDs themselves as rival Vivendi SA (V) has done, Mr. Stringer said.
He said consumers prefer fewer songs on each CD and added that putting fewer tracks on a CD could speed up the next release by the artist, he said.{and I guess he said this with a straight face ROFLMAO!!}
-By Janet Whitman, Dow Jones Newswires; 201-938-5248
