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Mukwonago1 / scorpio

10/17/05 8:31 PM

#98297 RE: TREND1 #98290

That bridge in Brooklyn is 'not-sucha-bad-deal', as long as you are not looking in the rear-view mirror when you're crossing it.

Here's something you might notice if you would spend more time looking through the windshield. Out of curiousity, I 'googled' --"Apple computer" & micro-transactions"--, and got this interesting strategic commentary from SONY regarding plans for down-loading premium movies/video content.

Am I pumped by current developments? Better believe I am! --

QUOTE:

Oct.13, 05
TV on Sony PSP: Yes, it is now possible, even if it is an expensive, run-around solution: Sony has relased a firmware upgrade for PSP, and the big addition is the Location Free Player, which lets you watch your TV from anywhere via Wi-Fi and your PSP. Of course you'd need to spend $300+ for the Location Free base station, but still... [Oct.13, 05] |

Oct. 4, 05
Sony's Stringer Banks On Cell, Content For Growth: Updated: read below: Yeah, yeah...Sony CEO Howard Stringer said on Tuesday he was pushing forward with a growth strategy that revolves around its powerful "cell" chip, and leveraging content to drive electronics sales.
In a speech at CETAC Japan, Stringer said he is also banking on Sony's large stable of movies, music and other content to boost electronics sales. As an example of this strategy, Stringer noted that Sony was enjoying strong sales of movie titles on a proprietary format for its hit PSP game console. The availability of movies, in turn, helps drive console demand.
>Update: Digital Lifestyles' editor Simon Perry is at CETAC and had an audio reocording of Stringer's speech, here...on Sony PSP, Stringer promised that owners will "soon be able to deploy the device's built-in WiFi, to watch video from home entertainment terminals, anytime, anywhere in the world...he also said "to expect to see" a PSP with a high capacity MemoryStick which can be synchronised a DVR. [Oct. 4, 05] |

Sep.18, 05
Sony Pictures Digital President: Downloadable Movies For $10-20: An interview with Sony Pictures Digital president Yair Landau...he mentions that "We've had limited success thus far. On a consumer-experience basis, it's not as easy or compelling as getting a DVD mailed to you. Right now, my hat's off to Netflix for recognizing the current limitations of Internet technology and really offering people the broadest means of accessing content."
When asked about the right price for downloadable movies in the near future, he says that "if you could do everything with a downloaded digital copy you could do with a DVD, I'd say $20 is the right price...[and] you should be able to download a catalog movie produc--an older title--for $9.99 in standard DVD format."
I'll bring out my favorite phrase here: delusional. Anything above $5 price point will not work in the digital arena... [Sep.18, 05] |

Sony To Unveil Restructuring Thursday: (reg req) A good and long story on Sony's attempts to restructure itself...CEO Howard Stringer wil announce the changes this Thursday, and digital content is expected to be a large part of it. Sony's joint venture with other studios, the online movie service Movielink, hasn't really fared well...neither has Sony Connect, the music service.
Another interesting point: Sony Pictures Entertainment head Yair Landau said he was still hoping that Movielink can fix its shortcomings, but Sony Pictures' priorities have shifted. The studio's energies are focused on PlayStation as an entertainment platform, both in the living room and as a mobile device.
But the story says that these efforts, however flawed, are still signs of an important change at Sony: the growing effect that the U.S.-based entertainment and marketing forces are having on the company. Under Stringer's lead, Sony Corp. of America asserted itself as the glue that could bind the entertainment and electronics segments. [Sep.18, 05] |

Sep.16, 05
When Will Sony Add TV Receiver To PSP?: When it happens, this will make a lot of people do a rethink: Sony is displaying its PSP handheld at the ongoing Royal Television Society conference in Cambridge, and this Times story mentions that even though the handheld games console cannot pick up television signals yet, the company says only 70 per cent of its potential is being used so far and the PSP already has a port that could allow software that could pick up TV to be added.
Sony has mentioned the TV receiver earlier as well..in its recent upgrade of the software, users in U.S. and Japan can now access the open-Internet.
Related:
-- Streaming Movies May Come To Sony PSP
-- Sony Launches Video Portal for PSP; Web Browser Update; HBO Shows [Sep.16, 05] |

Sep. 8, 05
Sony Phasing out SonicStage For Connect Software?: I'm not surprised...Sony is trying to bring everything music related under the Connect umbrella, worldwide. Sony, which launched a bunch of new Walkman digital players in Tokyo today, might be pulling the plug on its SonicStage media/music players software, according to this story. It is replacing it with Connect software, which, by the looks of it, mimics iTunes functionality in many ways.
There is no backward compatibility in new Connect software, manning no current Sony device is supported by the new "Connect Player" -- only the newly launched hard-drive and flash Walkman releases. [Sep. 8, 05] |

Sep. 7, 05
Norwegian Newspaper Creates PSP Version: (via Editors Weblog) The Norwegian newspaper Dagbladet, one of the biggest newspaper in the country, has created a Sony PSP friendly version, the first such I have heard of (though keep in mind that it is not that big a deal...now that Sony PSP has Wi-Fi, most of normal webpages will look fine, or so I have heard). [Sep. 7, 05] |

Sep. 6, 05
Industry Moves: Sony Pictures Digital Bulks Up: Sony Pictures Digital, the digital arm of Sony Pictures Entertainment, which has been quiet for some time now, has appointed three VPs to its marketing team:
-- Bill Sanders joins Sony Pictures Digital Sales and Marketing as the VP of programming. He will be responsible for overseeing the creation of film and video related programming and applications for the mobile marketplace.
-- Jason Spivak joins as VP of digital distribution and licensing and will be responsible for developing and managing the distribution of the Sony and MGM libraries to existing and emerging digital platforms.
-- Jason Wells will serve as VP of mobile and will be responsible for further expanding Sony Pictures Entertainment's properties throughout the mobile space through both mobile operators and direct to consumer opportunities worldwide.
Should be interesting to see if the team interacts and works with the retooled Sony Connect team, which is working on the music and softwrae part of Sony's digital media chain. [Sep. 6, 05] |

Sony Brings Location Free TV to PCs: Sony is taking some good steps in digital home (read the Orb news today in this context): from October, it will start selling a network base-station that can stream live TV and other video content through a home network or across the Internet to remote PCs.
The Location Free Base Station is an extension of the company's Location Free TV system, which until now has required the use of dedicated portable displays. The new system will work with normal PCs and can stream video to PCs both inside and outside of the home, or wherever it is located.
Related:
-- Sony Aims to Amaze With Its Wireless TV
-- Sony Unveils Music Store, Gadgets at CES [Sep. 6, 05] |

Sony PSP Shifts Big Numbers In UK: Meanwhile, Sony PSP is breaking records in UK: it sold 185,000 units in its first three days on sale in the UK, according to market research firm Chart-Track.
This represents the biggest launch weekend of any console ever sold in the UK, more than double the previous record of 87,000 units for the Nintendo DS in March this year.
More details here... [Sep. 6, 05] |

Sep. 5, 05
Sony In Talks With Apple On Licensing Its Service In Japan: Sony, which till now was gamely trying (and losing) to fight Apple in Japan and other countries, is now in talk with it about a possible compatibility of its online music download service for Japanese users of iPod.
Last month Apple started its online music service in Japan, and has been a big hit in the second largest online music market, hitting one million downloads within just four days, the fastest pace in the 20 countries where Apple's online music service is available.
With over 21 million users worldwide, the iPod is far more popular in Japan than Sony's Walkman Square...Sony's music download service Mora provides just 200,000 songs in Japan, compared to 1 million in iTunes Japan.
Japan Today: Sony Music and Apple are working out the details of a possible deal, including commission charges. They have yet to decide on when the iTunes Music Store will start offering its download services for Sony Music's songs. [Sep. 5, 05] |

Aug.30, 05
Selling Last Century's Dylan In Today's Music Economy: If you haven't seen enough proof that selling music is a complex business these days, consider the packaging of Bob Dylan's latest collection "No Direction Home."
-- A documentary by Martin Scorcese premieres on PBS and BBC Sept. 26 but goes on sale as a two-DVD set Sept. 20. It is already being pre-sold. The "buy" link at BobDylan.com goes to Amazon.com. Apple is the corporate underwriter for PBS and will "present" the DVD; Apple has already posted the trailer.
-- The two-CD soundtrack is on AOL Music now as one of 25 Listening Party new releases being offered exclusively for 48 hours in full CD form. It goes on sale today in hard copy and digital form. The "buy" link at BobDylan.com goes to SonyMusicStore.com.
-- Buy the CD set with a companion book from Sony for about $50 and get a six-song bonus CD. The bundle is already backordered until November.
It's a carefully calculated mix designed to provide maximum exposure and buying opportunities without favoring any option. [Aug.30, 05] |

Aug.24, 05
Sony Adds Web browser To PSP: Sony is adding Internet access to its Play Station Portable in a bid to increase the portable device's appeal as a handheld entertainment center...this is in U.S., it has already done so in Japan.
GameDaily: Sony Computer Entertainment platform development chief Izumi Kawanishi has indicated that they are considering adding Flash support and better Javascript functionality, as well as support for USB peripherals like a mouse and keyboard. [Aug.24, 05] |

Aug.22, 05
Building A P2P Service With The Labels, Not In Spite Of Them: Of all the strange digital twists in the last few years, the discovery by some P2P developers and music labels that they didn't have to keep fighting "The Ware Of The Roses" ranks right up there. That they were finding ways to work together while Grokster made its way through the U.S. Supreme Court takes it up another notch. Take this comment from RIAA CEO Mitch Bainwol to CNET News.com: "We said for a long time, and no one believed us, that we were serious that peer to peer could play a role in the distribution of music ... Our beef was not with the technology but with the people who wanted to use our products as start-up capital."
With legit P2P service Mashboxx scheduled for a mid-September launch, News.com's John Borland looks over the landscape and the roles played by Sony BMG CEO Andy Lack and former Grokster exec Wayne Rosso in getting this far.
Will it work? Depends on your definition of success. If the definition is having legal P2P hit the heights of illegal P2P, probably not. If they can make money with a smaller legit crowd, probably so. [Aug.22, 05] |

Aug.11, 05
Streaming Movies May Come To Sony PSP: In an interview with Japanese mag Famitsu, head of SCE software platform development, Izumi Kawanishi, spoke of the company's recent PSP firmware update, which adds web browsing functionality to the handheld, alongside his vision for future online applications of the sleek little wonder.
Among them, streaming movies, and including a better e-mail client into PSP. [Aug.11, 05] |

Aug. 8, 05
iTunes Japan Hits Million Mark In Four Days: Just four days after its entry -- finally -- into the Japanese download market, iTunes Japan hit the million-sales mark faster than any of the 19 other countries with the service. Eddy Cue, vp-applications, told AP: "We think we've got a huge success." iTunes launched on Thursday and it's already the top online music store in the country. Apple still lacks a deal with Sony Music Entertainment; Sony's own download service in its home country sells about 450,000 downloads a month, according to AP.
One big difference between iTunes Japan and its siblings: Apple is using a dual-price scheme -- $1.35 (150 yen) for most with the rest going for $1.80 (200 yen). The prices are higher than the standard $0.99 in the U.S. but lower than other online stores in Japan. [Aug. 8, 05] |

Jul.28, 05
Earnins: Sony's Woes Continue: Sony announced its second quarterly loss in a row and slashed its profit outlook, in its Q2 earnings. Sony posted a net loss of 7.3 billion yen ($65.2 million) in Q2, compared with a profit of 23.3 billion yen a year earlier. Sales dropped 3.3 percent to 1.56 trillion yen ($13.9 billion), from 1.61 trillion yen.
On the games side, it saw a 64 percent sales increase to 105.4 billion yen ($941.1 million). But the division also booked a 5.9 billion yen ($52.7 million) operating loss due to marketing and research expenses. That loss widened from 2.9 billion yen the previous year. Shipments of Sony PSP, which went on sale late last year in Japan and earlier this year in the U.S., totaled 2.09 million worldwide, while PS2 sales rose nearly fivefold to 3.53 million units.
Full results here.. FT: Lex Live: [Sony CEO Howard Stringer] has scope to withdraw from non-profitable segments like old-fashioned TVs. The movie business is lumpy and, since convergence of content and hardware is fairly elusive, could comfortably be spun off -- though Sir Howard, who cut his teeth at Sony in show business, may disagree. Games is also seen as integral, but any business that doubles its operating loss while lifting sales 64 per cent has to come under scrutiny. The fear, as ever, is that Sony avoids tough action: the beauty of rock-bottom expectations is that they are easy to out-perform." [Jul.28, 05] |

Jul.27, 05
Sony Launches Video Portal for PSP; Web Browser Update; HBO Shows: This could be a pre-cursor to a similar service in U.S.: In Japan, Sony has launched a Web portal through which owners of the PlayStation Portable (PSP) handheld gaming device can download video clips.
The "Portable TV" site offers at launch a small selection of movie previews, animated cartoons, entertainment, digests of TV dramas, music, lifestyle programming and sport. Content is initially available at no cost.
Launch of the site coincides with the availability of a software update for the PSP that adds features including a Web browser and support for the MPEG4 AVC video codec and AAC audio codec in which the clips are encoded. The downloaded video files require a MemoryStick Duo memory card for storage.
Still on PSP, in U.S., HBO Video will put out six of its programs on the mini-disc platform for PSP. That puts further pressure on Warner Home Video to follow suit. It is one of the only remaining major studios, along with DreamWorks, not to embrace the format. [Jul.27, 05] |

Jul.21, 05
Sony PSP Gets Online Browsing, TV Programs: Sony PSP is formally adding several new functions to its handheld gaming device, including browse the Internet and download TV programs. Chief among the additions will be a Web browser, and will allow access to most websites. Also new will be support for downloading video in the MPEG4 AVC format.
The PSP already has a wireless LAN for online gaming and for downloading software from the Internet, but Sony hasn't officially allowed users to browse the Web. But there have been numerous hacks allowing browsing.
Other new features include the capability to transfer photos from one PSP to another via an ad hoc wireless LAN, and support for additional media formats including the AAC audio format. [Jul.21, 05] |

Jul. 8, 05
"Lost" TV Pilot For Sony PSP: Yet more content being ported to Sony's PSP...Buena Vista Home Entertainment has become the second studio to release TV content on the Universal Media Disc, the Sony format. The two-part pilot episode of "Lost" will be part of the studio's latest wave of UMD titles, streeting in September. [Jul. 8, 05] |

Jul. 7, 05
Movies on Sony PSP: Sales Figures Still Unclear: We've been covering the slew of movie studios releasing movies in UMD format for Sony PSP...but this story says that the sales figures on these are not yet very clear. To date, 31 titles have been released on UMD. By midyear, 130 titles should be available. According to Sony Pictures, 100,000 copies of each title have been sent to retailers, and 60 to 80 percent have been sold to consumers.
Nielsen VideoScan, which uses point-of-sale records to track sales of DVDs and video products, can't get a fix on the sales records, mainly because Wal-Mart and other major retailers don't participate.
but one thing is clear: However, UMD seems to have clearly upstaged Warner Home Video's Mini-DVD format with a 2.5-inch screen, which was introduced in the 2004 holiday season. Warner is the only studio to have committed titles to the Mini-DVD format... [Jul. 7, 05] |

Jun.30, 05
Sony To Relaunch Connect Music Service; Will Work Cohesively: Cohesive is the keyword these days at the new, new Sony. It will relaunch its failed online music service, Sony Connect. Both the development of the Connect software and the Walkman hardware will be under the same management and the company will be focussing all its digital music efforts in one direction.
No more details yet, but Sony has indicated video downloads in the past...
WSJ: WSJ has the story on the Sony Connect disaster..fascinating read about the dysfunctional family.
Sony is pushing hard to roll out a fully revamped version of the Connect service, complete with jukebox software, a retooled Walkman and a video-download service in the fall. Connect is also working with the videogame and cellphone groups, in a stab at true cross-company cooperation.
I would think they would integrate it with Sony PSP and not try and flog the dead Walkman horse... [Jun.30, 05] |

Jun.24, 05
Sony's UMD Format To Get Industry Approval: Well, at least approval from Ecma, an industry association dedicated to the standardization of information and communication systems. The UMD disc has a storage capacity of up to 1.8 gigabites.
Analysts say the latest approval will encourage movie distributors and music labels to publish titles more in UMD formats, which will help expand the installation base of PSP portable game consoles. We've been covering the movie releases on PSP very closely..read our dedicated Sony section. [Jun.24, 05] |

Jun.23, 05
Online Game Is Tricky Business For Hollywood: Warner Brothers' sale of Matrix Online to rival Sony after just three months underscores how hard it is turn a profit from a non-mainstream game -- and how tricky a business online gaming can be for studios. (Despite the NYT headline, the sale itself is not new news; it was first reported last Friday and you read about it here days ago.) The NY Times reports that the game has fewer than 50,000 subscribers, far below studio projections. Jason Hall, SVP-Warner Brothers Interactive Entertainment, told the Times, "It's certainly disappointing that we are not the runaway hit like we would have hoped for." (I guess so, given the estimate of nearly $20 million on development.) As part of the deal, which has WB managing the content and Sony the marketing and infrastructure, Warner Brothers will share in future profits. It's not getting out of the online gaming biz, just admitting it's better at some roles than others. [Jun.23, 05] |

Jun.22, 05
Sony Approves Stringer As CEO; New Biz Plan By Sept: Can Sony be saved or reinvented? It is all down to the new CEO: Sony shareholders have approved Howard Stringer as the company's CEO...
Blooomberg: "My first priority is revitalizing the electronics business and face the new competition out there," Stringer said. Sony will "announce a strategy in late September that will increase profit and provide greater shareholder value."
Stringer also said today that he plans to move the company's movie library to the new Blu-ray DVD format once it's available, which will help sales of recorders and PlayStation 3 consoles. "Entertainment supports electronics," he said. "It is not more important than electronics." [Jun.22, 05] |

Jun.20, 05
Sony Spotlights Films for Europe PSP Launch; Signs Anchor Bay: Sony PSP has sold about 100,000 pre-recorded movies till now, according to the company and now for its European launch in Sept, it will have 20 video games and 10 films on sale. Paramount, Buena Vista, Fox, Universal and Sony Pictures itself will publish titles for PSP.
The 100,000 movies Sony has sold on specially formatted discs do not include copies of "Spiderman 2," which were bundled with many of the PSPs.
In related news in U.S., independent supplier Anchor Bay Entertainment plans to release its first six movies for the PSP on Aug. 23. Each will have a suggested retail price of $19.98. [Jun.20, 05] |

Phones To Come To Sony's Rescue? (sub. req.): Well, according to this FT story, Sir Howard Stringer is pleased with his new mobile phone, a Sony Ericsson device capable of storing 50 hours of music and downloading media content. The 63-year-old industrialist is expect to cite growing demand for such technology when he addresses the annual shareholder meeting of Sony Corporation, where he will formally become CEO on Wednesday. [Jun.20, 05] |

Jun.19, 05
Sony Buys Matrix Online; Strikes Deal With Warner Bros: Sony and Time Warner's gaming units have signed a long-term licensing deals that move development and distribution of "The Matrix Online" to Sony Online Entertainment and also give it rights to make a multiplayer game with DC Comics super heroes. No financial terms were disclosed.
E-Commerce Times: Warner Brothers is believed to have spent close to $20 million to create the online Matrix game, an ongoing storyline designed to continue the plot from the "The Matrix" movie.
Full details here... [Jun.19, 05] |

Jun. 5, 05
More Digital Content on PSP: Sony PSP content acquisition execs seem to be a busy bunch these days:
-- eBooks on PSP in Japan (via Rex): It may be planning to bring digitized texts to the PlayStation Portable. The company recently filed trademarks for "PSP Comics," "PSP Books" and "PSP Magazine" with the Japan Patent Office.
-- Adult Content on PSP: Adult movies in the PSP-friendly Universal Media Disc format will be released in Japan this summer. Two publishers will offer a total of eight movies specifically for the PSP. "Some consumers are questioning Sony's decision to accept material from adult-content publishers, while others surmise that the company has learned from the war between Betamax and VHS that adult-oriented movies can significantly affect the expansion of a new media format." [Jun. 5, 05] |

May.26, 05
Sony BMG CEO Still Smarting: Sony BMG CEO Andy Lack is the eternal pessimist: at a time when everyone in the industry is hopeful for new digital technologies, he is worried: "I don't think the prognosis is all that attractive going forward in '05, '06 and '07," he said. Digital downloads, ring tones and a new dual disc format, all of which have excited consumers, investors and record companies to varying degrees, are merely helping to stop a five-year decline in music sales, not expanding the industry, he said. On which he is completely wrong, but I'll let that slide for now...
Reuters: At the same speech, Lack said it could be 2009 before digital music becomes a large and profitable business for the major music companies. "I'm not making any money on this," he said. "(Apple Computer CEO) Steve Jobs ... has got two revenue streams: one from our music and one from the sale of his iPods. I've got one revenue stream that a proctologist would have a hard time analyzing. It's not pretty." [May.26, 05] |

Downloadable Movies and Video Blogging For PSP: PSP is emerging as a good video content platform, with innovation coming mainly from third party providers.
-- VBN: DVD Station, the rental kiosk company, will introduce a new service in June allowing DVD kiosk customers to download films onto personal media players including PlayStation Portable (PSP). The company says it is closing deals with two major studios to service films to DVD Station on a VOD basis.
-- NMA: In UK, PSP has created a video blogging Web site, playstationfreedom.co.uk, as part of its Summer of Freedom marketing campaign. The site is based around a competition that gives users the chance to win a year's all-expenses-paid trip around the world. [May.26, 05] |

May.25, 05
Interview: Bernard Gershon, SVP/GM, ABC News Digital Media Group: [Staci D. Kramer] ABCNews.com charges for video but its new podcasting service is free to download and free of ads -- for now. Bernard Gershon, SVP & GM, ABC News Digital Media Group, isn't making promises. "We are certainly looking at this as, definitely, a marketing opportunity and a way to reach consumers in new ways but I would not rule out putting in commercials top and bottom or sponsor mentions or anything else," he told paidContent.org Wednesday. "I wouldn't rule out, at some point, saying we'll create a bundle of podcast stuff and people may subscribe on a monthly basis to get the content."
Gershon is experimenting with content and with length, offering a mix of each. "We want to play with different lengths of content and see what people like. The longer stuff will be up to an hour and the shorter stuff will be 2-3 minutes. We think, and again this is our guess at this point, iPod people are generally playing songs that are three to four minutes long."
As part of determining what steps to take next, ABC News will try to capture data on repeat users and the kinds of content downloaded most often. Gershon thinks Apple's decision to support podcasting on the next version of iTunes will increase podcast listening.
The network's first podcast, "The AfterNote," launched without fanfare earlier this month and, after a week with no corporate promotion other than mentions inside the daily newsletter "The Note," was drawing 200 or so downloads a day.
Even without Apple, "there's enough usage out there that a major broadcaster out there like ABC News would want to get into trying to kick the tires and see if there's some content that we can supply to people that might make them more likely to watch ABC News on television or consumer any of other products."
Gershon is pleased with the results so far of another "terrific opportunity to play in a new space" as the news content provider for Sony's PSP. "They tell us our content (clips from an ABC News Now tech show)is doing really well. There's a little bit of a learning curve for people who have the PSP." The downloads are free; for now, as with podcasting, the PSP is a "marketing opportunity" for ABC News. Says Gershon, "It probably will evolve to either an iTunes-type pay-per-download model or a subscription model but there definitely will be some way to monetize the content longer term."
Related: After ABC, NBC Jumps Onto Podcasting Wagon
-- ABC News Dips Little Toe Into Podcasting Waters
-- Audio: Interview, ABC News President David Westin [May.25, 05] |

May.22, 05
PSP Signs On Five Major Movie Studios; TV Shows: Sony PSP is quickly becoming a portable movie device of choice...well, at least as far as the studios go. Five out of the six major Hollywood studios are releasing movies on the PSP's proprietary Universal Media Disc (UMD). The latest: Paramount and MGM. Only Warner Bros. continues to sit out.
More than 70 UMD titles are in stores or are scheduled to arrive in the coming months. "No other format has gotten this much software support since DVD was launched eight years ago," notes analyst Tom Adams of Adams Media Research.
Also, Paramount today announces 11 titles, including releases from fellow Viacom divisions Comedy Central, Nickelodeon and MTV, making Paramount the first studio to bring TV shows to UMD.
Since PSP was launched, more than 1.2 million units have sold. [May.22, 05] |

Sony's Kaz Hirai On the PS3, Online Gaming and the Competition: An interview with Kaz Hirai, president and CEO of Sony Computer Entertainment of America, to discuss the PlayStation 3 and the state of the video game industry after a week of announcements about future consoles..
On microtransactions and subscriptions: "I think that is a very important strategic way of making sure that you get additional revenue over and above just selling the initial game. Depending on some games, subscriptions work better. But for the most part, I would say that the microtransactions probably are a more convincing business model to present to the consumers" [May.22, 05] |

May.16, 05
Sony's Upcoming PS3: Media Features: Sony will launch its new PlayStation 3 video game console in the spring of 2006, with the promise of HD graphics and broadband connectivity...
With a built-in Ethernet port for high-speed Internet access, PlayStation 3 will allow gamers to surf the Web while simultaneously playing games. Its disc drive will use Blu-ray, a next-generation DVD format backed by Sony with vastly more capacity than current discs.
The third-generation PlayStation stands at the heart of Sony's convergence strategy that aims to pull together its game console and electronics hardware business with its movie and music segments. [May.16, 05] |

May. 3, 05
The Sony PSP As Marketing Tool: Sony's new PSP, with its vivid video, sleek design and hot sales, could be an answer for advertisers and marketers chasing increasingly elusive consumers. Emphasis on could because the success of the portable media device as marketing tool or any kind of ad box keys on demographics; if it's all about teens, no dice. It also relies on the consumer's willingness to add clutter and noise in exchange for free content. Broadband streaming and download video site Heavy.com is testing that willingness now, starting with branded video for a new body spray from Unilever. [May. 3, 05] |

May. 1, 05
Sony PSP In Content Deals With ABC News & AtomFilms: As we reported first here, ABC News is the first news channel on Sony's new PlayStation Portable...
HR 1: The initiative is starting with the technology program "Ahead of the Curve," music reviews and other shortform content drawn from the network's all-digital ABC News Now multimedia news initiative.
HR 2: AtomFilms has also tied up with Sony, to give away complimentary short movies for the platform. The deal is a Sony media buy, which means Sony is actually paying Atom to give away these films..in return, of course, PSP gets promotion on AtomFilms' site... [May. 1, 05] |

Apr.19, 05
DH Notebook: Sony's Real Digital Movie Strategy: What follows is a great example of why conference sessions should be recorded. I was so swamped at Digital Hollywood that I let a story from another news site stand as the record of a session I covered while I focused on other things. I shouldn't have because my take on what Michael Arrieta, SVP, Sony Pictures Digital Entertainment, said was quite different. I finally found a few minutes to extract the clip of his response to a question about new forms of distribution from moderator Lisa Napoli. I think you'll find, as I did, that he tried to lay out Sony's online movie strategy quite carefully. He mentioned Steve Jobs -- as did many people throughout the conference -- and he mentioned working to make Sony the anti-Napster, but he never suggested that Sony Pictures was, as CNET News.com reported, "trying to develop and own the next iTunes -- but for films."
What Sony is doing actually sounds more exciting than another online movie service: the studio is trying to change the way its movies can be distributed by services online to methods that make more sense for the consumer. (Sony is part of the studio group behind MovieLink.) Here's the core of Arieta's message: "I think you're going to see a lot of the studios, ours in particular, opening up access to the content in ways that haven't been done before because, frankly, we need to ...."
Listen -- or read in extended entry -- for yourself. ( ) The brief audio can be found here. (MP3, 1.7MB, 4 min.)
Rafat also went to Steve Banfield, senior VP at Sony Connect, about the situation: Banfield told him -- as I thought Arrieta made clear at DH -- Sony Pictures Digital is not building an aggregated service. Regarding Sony Connect, "as we have said before, video is a logical progression of our strategy, but no specifics have been announced." I'm including Banfield's comments in extended entry as well. Lisa Napoli: Hollywood has been perceived as reticent to deliver media into new distribution channels. Has this changed? Why or why not? Why don't we start with Mr. Arrieta on this one?
Michael Arrieta: I think you can look at online distribution of some content right now and it's easy to see it's not a ubiquitous access point. You can get a lot more on Netflix then you can off of the online services today. Personally, I'm doing a lot with our content to change that. We've got about 2,500 movies on DVD of our 5,000 movies in our library. (You might have heard that our library's going to get bigger soon.)What we're doing is trying to provide ubiquitous assets so by the end of the year we'll have the first 500 of our best movies digitized and coded and out on pretty much anybody's online distribution network that wants to sell movies. We're setting rules against that that we think are actually quite fair in terms of essentially trying to get in front of the people -- essentially what Jobs did with the music industry -- we're trying to set the tone from the video industry and actually set usage models and business models that are a little bit more fair. There's a lot of things that go into that -- copy protection, DRMs and such are really kind of at the forefront,. The studios are very worried about that and certain people in the studios are more worried than others, the guys that run traditional businesses that have multi-billion dollar p-and-l's are a little less open to having people get content in new ways that they think might be insecure.
I run the digital group. I'm the small guy in the studio so I'm trying to build a new p-and-l but I'm also trying the build the next p-and-l, the anti-Napster, if you will. I think you're going to see a lot more content coming online with much, more flexible usage models. A good portion of the Sony Pictures library will be made available online in this upcoming 12 months and that's a pretty big shift from the years gone by.
To date, we've only allowed people to do very succinct things like the 24-hour viewing model through some of the online networks. I think that's a toe in the water, it's at least a start but people have said they want a lot more than that. Everybody talks about the long tail. If anybody wants to go out and download Mannequin 2,I do have that if you're dying for it. It turns out you might want Spider-Man 2 first, so I'll give you that first and then make Mannequin 2 also available. There's a lot of things in our library that we'll make available and hopefully there's an audience for everything but ultimately we need to get together with the Micosofts, the Intels, the technology providers in the world to actually make the platforms a little more secure. ... I think you're going to see a lot of the studios, ours in particular, opening up access to the content in ways that haven't been done before because, frankly, we need to ... ."

Steve Banfield, senior VP at Sony Connect: "Rather it is committed to making its content and digital products available to a number of emerging distribution outlets. Comments made and reported at the Digital Hollywood Conference were intended to state Sony Pictures' continuing commitment to developing this market by embracing new technologies, understanding consumer interest and demand, and serving these interest through innovative business models. Sony Pictures has historically demonstrated leadership in the digital media world and the comments were intended to suggest that the company would continue to be a pioneer in these efforts.
The report also contained a reference to establishing pricing, distribution and usage models. The more accurate comment is that in these early days of these emerging markets, we across the digital industry have the opportunity to participate in such decisions rather than have others decide for us.
Regarding Connect, as we have said before, video is a logical progression of our strategy, but no specifics have been announced." [Apr.19, 05] |

Apr.13, 05
Sony Says Open to Avoiding DVD Format War: Glad that Sony is finally playing ball with the industry...and really, it has no choice but to...the company said it was open to discussions to create a single standard for the next generation of DVD discs.
The electronics industry is facing a battle between the so-called Blu-ray optical discs and HD DVD discs, two different new DVD formats which offer higher capacity than current DVDs. Japan's TDK, Sony and Philips are part of a large group promoting Blu-ray, against a group led by Toshiba and its HD DVD technology. [Apr.13, 05] |

Apr. 7, 05
Sony Sold 500,000 PSPs in Two Days in N. America: The iPod killer..has it finally arrived? Sony has sold 500,000 units of its PlayStation Portable handheld video game device in the first two days after its North American release...the PSP generated a total of $150 million in first-week sales at North American retailers. It said sales remained strong through the rest of the first week but did not quantify what that meant or give details on second-week sales. [Apr. 7, 05] |

Apr. 5, 05
Hackers Add Web, Chat to PSP Video Game Player: Well, these hacks have been in full fury since PSP launched, and now turning into a great tool for Web browsing, comics reading and online chat, besides the traditional uses.
One man needed only 24 hours to get a working client for Internet Relay Chat, or IRC, an older messaging platform...Other hacks include a way to transfer TV shows recorded by the TiVo digital video recorder to the PSP.
The window has opened up a bit for Sony...Some smart people work in there...I just hope they are smart enough to ride the curve. [Apr. 5, 05] |

Mar.30, 05
Sony Pictures' Digital Plans: Everyone wants to develop an iTunes-like service, and call it an iTunes killer..same with iPod. Anyway, this is on the movie side, and came up on a panel today at Digital Hollywood. "We want to set business models, pricing models, distribution models like (Apple Computer CEO Steve) Jobs did for music, but for the film industry," said Michael Arrieta, senior VP of Sony Pictures.
His group plans to digitize Sony Pictures' top 500 films and make them available for the first time in various digital environments within the next year. He said the venture will go beyond just Movielink, the VOD joint venture of Sony Pictures and several other major studios...
For example, Sony plans to sell and make films available in flash memory for mobile phones in the next year, Arrieta said. It also will further develop its digital stores for downloading and owning films on the PC...
The Digital Hollywood Coverage is sponsored by Maven Networks... [Mar.30, 05] |

Mar.21, 05
HP Snaps Up Snapfish -- And Pumps Up Online Photo Competition: Could the online photo space get any more interesting? By acquiring Snapfish and its 13 million registered users, HP can now compete with Kodak and Sony on both the image and camera/printer fronts -- and all three will be competing with Google-Picasa, Yahoo-Flickr, MSN, etc. to be the user's primary image home. (No terms disclosed.) For the search engines/portals, it's about creating the kind of critical mass that not only keeps users coming back but makes it awfully tough to switch loyalties. For the camera manufacturers, it's about controlling the image food chain -- buy our camera and photo printers, store your photos with us, order photos from us, use our service to share photos -- and attracting related retail dollars. The search engines/portals have a lot to gain; the manufacturers have everything to lose. Should be fun. [Mar.21, 05] |

Mar.17, 05
Reviewers: Sony PSP Not Ready For All-In-One Primetime: The reviews are starting to roll in on the Sony PlayStation Portable debuting in the U.S. next week and so far so so when it comes to anything beyond style, games and video quality. Few swiss-army-knife products manage to deliver in every category and Sony doesn't appear to have produced an exception -- although it is likely to sell like crazy, particularly to gamers.
-- The WSJ's Walt Mossberg says the PSP "could become Sony's first iconic portable, personal product of the digital era -- Sony's equivalent of Apple Computer's iPod." With that in mind, Mossberg and his assistant "tried out the PSP not only as a game machine, but also as a hand-held multimedia player that might appeal to some of the same people who buy iPods, digital cameras or portable DVD players. Our verdict: The PSP is an impressive hand-held game player with great graphics, good game controls and strong multiplayer capabilities. But its added multimedia capabilities, while potentially strong, are hobbled by design and cost issues, at least at launch. The PSP isn't likely to replace the iPod or the portable DVD player anytime soon."
-- USA Today's Ed Baig: "...This device just about does walk on water -- at least for playing games. Alas, Sony doesn't make the same splash with the machine's other functions -- as a portable movie player, photo viewer, even as a potential rival to Apple's iPod. Make no mistake, though. PlayStation Portable, known as PSP, is a head-turner." He wraps up the detailed review: "There's a lot to love about this very slick device, especially for devoted gamers. But folks looking to do other things may want to see how Sony improves PSP later on."
Related: Our dedicated Sony section.
-- Lions Gate Licenses Movies To Sony PSP
-- Sony PSP To Play Music [Mar.17, 05] |

Mar.13, 05
More Reactions To Sony: No Return?: A couple of stories are taking a second look at new Sony CEO Howard Stringer, and hint that it may be too late to do anything with Sony, at least in terms of convergence.
-- NYTimes: Last week, Sony announced a bunch of new Walkmans positioned against the ultralight iPod Shuffle. They reflect the same insular hardware culture that learned the wrong lessons from the earlier success of the Walkman. The game today, however, is not necessarily about spec sheets and weight in grams.
-- Newsweek: In the most famous cases, Sony failed to spot the potential of flat-panel TVs, ceding leadership to Samsung and Sharp, and fumbled the lead in digital music players to Apple. "I can't afford to be beaten this way again," concedes Stringer, if only because the iPod defeat has become a symbol of "Sony's stodginess." [Mar.13, 05] |

Mar.10, 05
What Must Sony Do Now?: Advice is pouring in fast and furious from all quarters for Sony's new CEO Howard Stringer..this time it is BW.
Four points:
-- Halt the Slide in Consumer Electronics
-- Come Up with Some New Hits -- Like Yesterday
-- Crush the Silos Inside Sony
-- Think the Unthinkable
"Two years down the road, video could be bigger than music, and Sony could be a major player. But it needs to throw its full weight behind industry standards and depend on the excellence of its products -- rather than lock-in -- to win consumers." [Mar.10, 05] |

Mar. 9, 05
Will Howard Stringer Save Sony?: (by Robert Spears) Two Strategos execs state the obvious in five points to Sony's new CEO, Howard Stinger, (nothing much new here folks):
1. Come to grips with the realities of digital media and do not become reliant on a few financial blockbusters
2. Persuade your software and hardware teams to play nice together
3. Make a lot of money from a global arsenal of entertainment assets (yes, the word 'leverage' was leveraged here to underscore this point)
4. Look outward for innovation (OK, this one is a good reminder)
5. Focus on what you do best (as opposed to risking everything on unproven products in unproven markets)
Missing from the recommendations, IMHO, were:
i. address hostile and indifferent attitudes toward digital media via public policy and consumer awareness programs
ii. revamp outdated licensing fees
iii. reachout well beyond Sony to help build a sustainable global market for digital IP [Mar. 9, 05] |

Mar. 7, 05
Reactions To Sony's New CEO
-- Reuters: Sony Attempts to Merge Content and Tech: Gartenberg suggested that Stringer's taking the helm also "indicated the importance of content in the digital (era)."
-- BW: A Memo from Sony's New Chief: Sony's New CEO Howard Stringer's e-mail to his employees...
-- WSJ I: Past as Prologue: New CEO to Seek Synergies: The Connect [music] service has attracted little interest or attention, and has generated little visible synergy with the music-content side of the company -- something that was an initial selling point for the service. Trying to revive the ailing service is likely to be an area of focus for the new Sony regime.
-- WSJ II: Can Stringer Tame Sony?: The turnaround of Sony's entertainment business is Mr. Stringer's main claim to fame at the company. It is likely to provide a blueprint for his strategy going forward.
-- News.com-I: Sony's golden opportunity: " You can take Sony into the digital-home era by doing the following: Leading standards and alliances that grow digital-home markets..."
-- News.com-II: Sony breaks the mold: Infighting among Sony's entertainment and electronics divisions has slowed moves to promote a convergence strategy. Will Stringer help the company become a leading gadget maker again?
-- NYT I : New Man at Top Crossing Oceans to Confront Internal Borders: In the last two years, however, Sir Howard has actively tried to revive Sony's portable music player business as Apple's iPod came to dominate the market - a distinct embarrassment for the company that invented the Sony Walkman in 1979.
-- NYT II: Music and Movie Units to Stay Under New Chief for Foreseeable Future: So far, one thing appears to be abundantly clear: Sir Howard has no plans to give up the reins to the American entertainment operations anytime soon.
-- FT I: Switch at top prompts takeover talk: Bankers said that, with a market capitalisation of about $36bn, Sony's size would not be an insurmountable obstacle.
-- FT II: Timeline on Sony: On FT.com... [Mar. 7, 05] |

Sony PSP To Play Music: Not necessarily very revelatory, Sony will hook up its PlayStation Portable handheld game player to its digital music service, Sony Connect. And of course, I'll let you throw barbs on how successful that hookup will be. At least it will be better than having close to zero subscribers...
The company also plans to launch software that would let the PSP link to PCs and Macs within a year, Yair Landau, vice chairman of Sony Pictures said speaking at the Digital living Room conference today.
Landau also complained about Sony's reliance on Memory Stick, am expensive flash memory card format invented and largely promoted by Sony...
Related: For all the buzz on Sony's steps (or misteps, whichever way you want to look at it) in digital media and music, read the ourdedicated Sony page. [Mar. 7, 05] |

Mar. 6, 05
Sony to Name Head of U.S. Unit as CEO: In an extraordinary move, Sony has named the British-born head of its U.S. operations, Sir Howard Stringer, as chairman and CEO in a rare move for a major Japanese company.
Update: The compay has formally announced it: The press release is here: "Together we look forward to joining our twin pillars of engineering and technology with our commanding presence in entertainment and content creation to deliver the most advanced devices and forms of entertainment to the consumer," said Stringer in the statement.
Current CEO Nobuyuki Idei will step down to take responsibility for the firm's slumping earnings after five rocky years at the helm.
How will this affect digital content efforts at Sony? Hard to say, but in a recent interview with News.com, Stringer was adamant that change had to occur faster. "Without content, most devices are junk," Stringer said in late January....
WSJ (sub. req.): Long an advocate for the convergence strategy that Sony initially envisaged, Mr. Stringer said he believes Sony's expanded entertainment assets "are at a level that gives us comfort to develop synergies more efficiently." He added: "The next level is to prepare for the truly digital revolution. We've got to get the relationship between content and devices seamlessly managed."
Engadget: For the past several years the company has been riven with infighting between its entertainment and electronics divisions, and they've done a really poor job adjusting to the new realities...
Bloomberg: "There is no other executive that understands entertainment and technology as well as Howard," said Richard Doherty, a research director at Envisioneering Group.
FT: A profile of Stringer. "Sony's US operations have proved more adept than elsewhere in breaking down the silos between its consumer electronics, games, music and film operations." [Mar. 6, 05] |

Mar. 5, 05
Lions Gate Licenses Movies To Sony PSP: Lions Gate Entertainment plans to format movies for the PlayStation Portable, a move that makes it the first outside film studio to support Sony's new UMD media format.
Sony also has signed up a number of Japanese content partners that plan to sell anime-style cartoons and music videos on UMD discs.
WSJ: Sony declines to say whether other Hollywood studios have agreed to release movies for the PSP... [Mar. 5, 05] |

Mar. 3, 05
Sony's SoapCity Shutters Download Service (via LostRemote): Wow, seems like everything Sony touches these days is the kiss of judas. Just when online downloading is becoming bigger and bigger by the day, Sony pulls the plug on what was surely an innovative venture: SoapCity, an online service offering downloads of popular daytime soaps. The site will continue to operate as a news/info destination, providing daily updates on all soap operas on the air.
According to the company, the costs of the site's programming inventory, the limited amount of content available, and the lack of large scale viewership made the site's paid download business "not economically viable."
ZDNet Australia: A spokesperson for the company told irate subscribers on the site's message board: "While the site enjoyed success and served the demand of its subscribers, the cost of maintaining the site with a limited library is not economically viable. [Mar. 3, 05] |

Sony BMG's Andrew Lack, At His Bluest Ever: Sony BMG's CEO Andrew Lack (we were off the record on this one, at least as far as audio and video goes) gave a barnburning interview today at the Billboard Music & Money conference in NYC.
His killer line, "The 'miserable tsunami' [of piracy] is going to hit the TV and studios this year...
More on the Billboard PostPlay blog...the full interview coming later..so stay tuned... [Mar. 3, 05] |

Feb.23, 05
Sony Writes Off PDAs While Apple Expands iPod Line: The considerable and constant morphing of portable media players and mobile phones into swiss-army-knife devices is taking its toll on PDAs. Sony already had pulled back on the elegant but high-priced Clie in its overseas markets but now is halting development in Japan. Sony is trying to spin the move away from getting out of the PDA business; a spokesperson told IDG: It's a chance for us to recharge our batteries, to sit down and consider the business." But it's hard not to see it as a big step back. Will Sony put PDA operations in its portable media players? Its already moving into MP3 phones.
Meanwhile, Apple acknowledges the competition by expanding iPod options and lowering some prices. For instance, the 4GB $249 iPod mini that didn't compare so favorably price-wise to the 5GB $225-ish Creative Zen Micro is now a better deal at $199. Ditto for the new 6GB iPod for $249. The iPod Photo has better price points and more functionality. Apple isn't going to be able to own the market forever but moves like this should help it rule a lot longer.
Related: Sony Ericsson Set to Unveil Walkman Phones
-- Sony PSP Due In US March 24
-- Our Moment Of Zen [Feb.23, 05] |

Feb.14, 05
Sony Ericsson Set to Unveil Walkman Phones: So here's how you miss stories: Jay Samit told me about this in September last year, in passing, and of course, I should have connected the dots. It is called laziness...
Anyway, Sony is trying hard to milk anything out of the Walkman brand: Sony Ericsson will sell music-playing mobile phones under its Walkman brand, and will work closely with online music division Sony Connect and Sony BMG, its music division, on content.
The new Walkman phones, which will be available early in the second half of 2005, will have large memory, good quality headphones and the ability to easily import tracks from a personal computer and other devices. The Walkman phones will also be the first networked Walkmans to use open software standards for compression and piracy protection. [Feb.14, 05] |

Feb. 4, 05
Bump In The Global Road For Sony's PSP: North American sales of the PlayStation Portable will proceed as planned starting March 24 but it looks like Sony will postpone distribution in Europe and Asia (outside of Japan, where it's already on sale) until production can catch up and keep up. That would be the second major delay for the game console that might be doubling as a personal edia player; Sony planned to ship for Christmas but was delayed by a software issue.
I happened into a shiny new Sony Style store in suburban St. Louis yesterday -- great browsing for a gadgethead but bittersweet to see how wide Sony has missed the tech and pricing mark so far on digital audio, flash and hard-drive players, portable media, etc. Not even the promise of 50 free Connect downloads with purchase could make me wish I was buying a Net MD player yesterday ... Still a lot of potential, though, if Sony really can get its act together. [Feb. 4, 05] |

Feb. 3, 05
Sony PSP Due In US March 24: Sony has earmarked 1 million PlayStation Portable units for North America, quelling concerns about availibility not matching demands. If the PSP were just another game device, we'd barely blink. But Sony sees it as much more and, in fact, it comes with the full-length movie SpiderMan II on a Universal Media Disc. The wireless unit with what Sony execs tout as a great video screen and three to six hours of battery life is viewed internally as a solution to some of Sony's most pressing problems. How it plays externally remains to be seen.
Related -- Sony To Launch PSP Music Site?
-- Stringer: Tokyo and U.S. Branches of Sony Talking Same Language
-- Sony May Open PSP To Other Content Players [Feb. 3, 05] |

Jan.26, 05
Sony To Launch PSP Music Site?: I have a hard time believing this is true in isolation...sure, the new PSP will have music playing capabilities, so the new site--to be launched in UK this summer--may just be an accompanying download site.
Anyway, to the news: The download service, which is being developed by Sony Computer Entertainment Europe, will enable music to be downloaded direct to the PlayStation Portable. The download platform will initially be used as a marketing tool to offer PSP users free additional game levels and upgrades. [Jan.26, 05] |

Jan.23, 05
Searching For Download Profit: Turns out 99-cent downloads are no way to make money, or so top music execs told the International Herald Tribune at Midem. Sony BMG's Thomas Hesse calls the quasi-standard fee "an introductory offer" -- "a fair way to begin the business" but, at 99 cents, it's difficult for all of us to make a decent living. ... In the longer term, we believe music is worth more. And we should resist the temptation to price music down to zero just because we're competing with free."
From Christophe Cuvillier from French music retailer FNAC, "The way this business is structured at the moment there's no way today to make money."
For Microsoft, music is another way to become part of the consumer's life. Mike Conte, GM of of MSN Marketplaces, says, "Music is not a big moneymaker for MSN. We cover our costs and little more."
In the same article, Sony's Phil Wiser talks about the company's flawed digital music strategy. "In many ways, our position in the market was ours to lose, and to some extent we lost it because of a couple of bad decisions. One of them was, clearly, going with an internal, proprietary technology, causing more damage than it did good." Now, Wiser claims Sony is leading the charge for open standards. "We're going to transition over time to have multiple formats. If we're successful, consumers will never have to worry about that again." [Jan.23, 05] |

Jan.21, 05
Stringer: Tokyo and U.S. Branches of Sony Talking Same Language: Tokyo and the U.S,content and engineering are finally on the same page and that bodes well for Sony Connect, according to Howard Stringer, CEO, Sony Corp. of America and vice-chairman of the parent company. In an interview with CNET, Stringer explains, "Connect is a service that cannot exist unless it crosses the silos within Sony to develop relationships with devices. I think everybody gets that. It has converts on both sides of the Pacific, and the interchange and interflow of technical and marketing discussions is now daily."
As an example of better communications, he offers the PlayStation. "We're working very closely with PlayStation, whereas we didn't two or three years ago, and we're very happy with that relationship. All in all, I think the company is realizing that there can only be advantages if we work together. If we don't work together, it's not going to fly."
-- He also describes the PlayStation as a "convergance device" in many ways and the PSP as the first portable screen he's seen that's good enough for video. "I never considered video on a portable device because I never thought the screen was worth anything. The screen on the PSP is really sharp. It's better than a movie screen, and God knows we all watch movies on airplanes -- and that is a fairly hideous experience. This is a good experience."
Related -- Sony May Open PSP To Other Content Players [Jan.21, 05] |

Jan.20, 05
Sony May Open PSP To Other Content Players; Mobile Functions Mooted: Other content and entertainment companies may soon be able to use the Sony PSP's UMD optical disc format. At present the only commercial UMD content on the market is the handful of games available for the PSP.
Sony will give companies access to the movie and music variants of the technology so that they might produce multimedia players that support UMD, Ken Kutaragi, CEO of Sony Computer Entertainment said at a speech. The company will keep the game format to itself and thus stop other companies from developing competing gaming products.
"Many of the content publishers and studios and artists are eager to bring their content [to] and show their library on PSP," he said.
AFP: Kutaragi said he wanted to give the PSP communication and web-browsing functions so it could compete against multi-function mobile phone handsets. [Jan.20, 05] |

Jan. 6, 05
MSFT Mulls Sony Partnership (sub. req.): Apparently, in an effort to counter Apple's success in digital media, MSFT is enlisting a raft of new allies, and even may pursue an alliance with Sony Corp. In his speech tonight, Gates outlined agreements with MTV Networks, TiVo, and Yahoo.
But in an interview with WSJ, Gates suggested that both Microsoft and Sony could benefit from a broad partnership in digital entertainment. Specifically, Gates said that both companies "have a lot of incentive to work together" in digital-music "infrastructure," including online-music services and protection against improper music copying. [Jan. 6, 05] |

Dec.30, 04
Sony Tries To Connect The Dots: Remember when the Walkman was desired the way iPods are today? Seems like a long time ago. Sony Corp. longs for a return engagement but has yet to cause any buzz with its current generation of hardware. That goes a long way toward explaining Sony's latest move: Connect Co., a new company formed to bridge the gap between its Japanese hardware and U.S. media businesses. The new company, headed by veteran electronics engineer Koichiro Tsujino and Sony Corp. of America CTO Phil Wiser, will include the Connect music store.
The Wall Street Journal (sub. req.) says the first step is to connect the disparate groups within Sony. For instance, the SonicStage software team in Japan will be merged with a group in San Jose.
Tsujino explains: "What we've done for starters is take all those scattered pieces and linked them together. ...It's extremely complicated. The service side and the electronics side have different opinions and priorities. And when you think of Japan and America, the languages are different, the work styles and time zones are different, and they're physically far away from each other."
Perhaps most significant for consumers, the team told the Journal Sony will move away from DRM exclusivity. Say Wiser, "Our technology is great, but we're not going to support it exclusively. ... We need to make our product as compatible as possible for the consumer."
This is being framed in the press as a direct response to Apple but it would be a mistake to be that reductive. This should be about building a better digital experience that draws consumers to Sony, not just about beating one company. Free consumers to integrate Sony players into their lives by removing the network prohibitions. Make the DRM experience less complicated and less draconian. I haven't installed the latest version of Sony's SonicStage software for my mini-disc players because it appears to actually remove transfer privileges found in the current version.
Read this recent column PC World's Eric Dahl for more insights into Sony's portable player/music download woes. [Dec.30, 04] |

Dec.19, 04
EMI Music Publishing, Sony BMG Join Digital Forces: Described as ground-breaking in the press release, this agreement covering mobile music, DualDisc and digital video products in the U.S. and Canada may live up to the hype. Initially, it paves the way for discussions that should lead to a wide range of new digital products, formats, platforms and services.
"An agreement that facilitates more consumer friendly and piracy-deterrent formats is a big step for our industry and a huge win for artists and music fans." -- Martin Bandier, chairman & CEO, EMI Music Publishing
"This agreement will enable us to rapidly expand into new markets as we distribute music and entertainment content over a broad variety of platforms, including innovative products for the traditional retail market, music services in the mobile space, and video on demand." -- Andy Lack, CEO, Sony BMG Entertainment [Dec.19, 04] |

Nov.29, 04
Sony Broadband Powers Up with the Cell: Sony will base home servers for broadband and HD on "revolutionary new computer chip" the Cell starting in 2006. Partners IBM, Sony and Toshiba say the Cell "will allow computers and consumer electronics products to quickly process huge amounts of video and other digital content." Tech details aren't coming until February but the chip's power is based on multiple processor cores including a 64-bit power processor.
This is part of the tech puzzle that needs to be solved before broadband TV can succeed.
Related -- Internet TV Company Survives with Niche Emphasis [Nov.29, 04] |

Nov.10, 04
Will pocket-size Sony PC take on iPod?: Sony has unveiled the Vaio U for U.S. customers, touting a machine that's designed to be as much an entertainment hub as it is a full-fledged portable PC.
Besides video, the mini machine can also play music, and to that end, the company will bundle it with headphones and a remote control, as well as its SonicStage music software and photo and DVD-viewing applications. [Nov.10, 04] |

Oct.28, 04
Sony Heads Full Speed Into Mobile Entertainment With Its New PSP (reg. req.): Sony has surprised the consumer electronics and video game industries when it unveiled the sticker price for its upcoming PSP hand-held game device -- under $200, far less than expected. Although Sony initially will target only gamers with the PSP, the palm-size machine is built to play digital movies and songs on proprietary disks the size of drink coasters.
"This is a battle for all of mobile entertainment," said P.J. McNealy, an analyst with American Technology Research in San Francisco. "It's not just about gaming." [Oct.28, 04] |

Oct.27, 04
Sony's Location-Free TV Makes Local Shows Portable: On Oct. 15, the company began selling its LocationFree TV, a portable LCD television panel that uses Wi-Fi wireless technology to receive video content and access the Internet from a base station hooked up to a broadband connection.
The sets feature picture-in-picture capability and can connect to camcorders, a PlayStation 2 and other consumer devices [Oct.27, 04] |

Oct.25, 04
Sony Launches MP3 Walkmans to Counter IPod: Sony has launched its first MP3-compatible flash memory digital music players under the Walkman name, in the latest bid to reclaim the lead in a market it has lost to iPod.
Sony's new products, the Walkman NW-E99 and NW-E95, play songs in MP3 format as well as Sony's proprietary ATRAC technology...
The MP3 Walkmans will only be available in Europe. There is no plan at the moment to sell the products in Asia or North America... [Oct.25, 04] |

Saving Sony: This is probably the 50th story with "Saving Sony" phrase...this one happens to be on the cover of Newsweek's international edition...
Stephen Levy thinks that PlayStation Portable might save the day for Sony...the device will be released in Japan later this year...
Will it be, as Sony hopes, a groundbreaking, category-busting killer device, "a Walkman for the 21st century" and a flagship for the proud but troubled company that still believes it can regain primacy in the world's living rooms? Or just another cool game machine?
It will have games, of course...Using built-in Wi-Fi, in will have networking gaming capability. But it will also play films and songs. It will display photos and home movies. It could stream TV shows from the home network. It could even use it as a VOIP phone...
Sony assumes that by the end of March 2005 it will sell more than 3 million PSPs...
Problems remain: low battery life, DRM calisthenics etc... [Oct.25, 04] |

Oct.13, 04
Sony Nodded Off on Digital Music: An admission from Sony, finally: they sucked, and still do. The company's digital music service Sony Connect will undergo major improvements...
"We fell asleep for a little while, now we're awake," [Stan Glasgow, president of Sony Electronics consumer and commercial sales] said. "Our performance has been less than good. We've been late to market. Maybe we were resting on our laurels, maybe it had something to do with being related to a music company."
Sony will now support MP3, by next summer, instead of its own format Atrac3: it is looking to be more open in its support of technologies, formats and standards...
WSJ: It plans to introduce a range of new portable products with improved graphical interfaces for navigating through song libraries... [Oct.13, 04] |

Sep.30, 04
More on Sony Connect's Movie Plans: Some more details on Sony Connect's online movie service, to launch next year: they're thinking of making it possible to properly buy (and own) the movies you download rather than rental periods, and will work with the PlayStation Portable.
Related:
-- Sony Connect's Video/Movie Plans
-- Sony Connect Has Plans Beyond Music
-- Sony's Plans on Video Downloads [Sep.30, 04] |

Sony Plans European Ad Blitz to Stifle iTunes: Will counter-marketing offesive be able to counter iTunes? I doubt it...Anyway, Sony next week will launch a marketing blitz in Europe for its new Connect music download store, and new advertisements for four Walkman products, including the recently launched NW-HD1 hard disc player.
Also, Sony said its second wave of European expansion is still on track for later this year as the battle for Europe's Web-savvy music fans intensifies. [Sep.30, 04] |

Sep.23, 04
Sony And Comcast Plan New Channels: The joint machinery is beginning to move: Animax, AXN and Sony Entertainment TV (the latter two I've watched in India, and are very popular there) three channels already established in Asia and Latin America could be distributed by Comcast as part of the alliance.
Comcast and Sony have also vowed to develop a video-on-demand joint venture, exploiting the 3,000 films and 35,000 TV episodes held in the Sony Pictures library. That library could also exploit MGM's 4,000 movies and 10,000 TV episodes.
Related:
-- Comcast Ties Up With the Sony-MGM Consortium, For VOD
-- Sony Closer to Content/Gadget Vision with MGM Deal [Sep.23, 04] |

Sep.22, 04
Sony To Support MP3: A day after Martin Tobias asks Sony to get off the ATRAC3 jihad ("I want Sony to stop being as*****s and get off the memory stick and ATRAC3 jihad. They need to open up and support more formats of memory and codec and DRM."), the company has listened (sorta). It is working to add native MP3 support to its portable music players--a major strategy reversal.
The shift from reliance on its proprietary format will begin with flash memory-based players, the electronics giant said, but plans are still being finalized on how and when products will add MP3 support.
Still slight vaporware, if you ask me, since the MP3 format is not likely to come anywhere near Sony Connect online music service anytime soon, but a major development in attitude, if nothing else...
Engadget: "Somebody pinch us." [Sep.22, 04] |

Sep.14, 04
Sony Closer to Content/Gadget Vision with MGM Deal: Blue-Ray's down our throat now...and we can't do anything...
NYT: Executives close to Sony said that bolstering its position in the battle of DVD formats was one of several important factors in its decision to pursue MGM. Indeed, the management of Sony of America helped sell the idea of bidding for MGM to its Japanese parent in some early internal meetings by promoting "the Blu-ray angle," the executives said.
BusinessWeek: "History will continue to prove that technology innovations, large-capacity data-storage mediums, and higher-speed distribution networks will only boost the value of Sony's digital-content libraries," [Sony America CEo Howard] Stringer said in another recent speech. [Sep.14, 04] |

Sep.13, 04
Comcast Ties Up With the Sony-MGM Consortium, For VOD: Update: Sony-Comcast have formally announced the deal..read below...
Also in the Sony-MGM-Partners buyout deal, Comcast, the biggest U.S. cable operator, is considering plans to contribute about $300 million to the venture, according to Reuters.
Comcast will the partnership to make Sony's Columbia/Tri-Star film library (and include MGM library) movies available through its VOD service, or on cable TV channels it separately plans to launch with Sony...
Earlier this year, Comcast made a failed bid for Disney...
Update: Release: While this agreement contemplates consummation of the acquisition of MGM, the parties will proceed with Sony content on a stand alone basis for VOD under any circumstances.
"This represents our first major studio deal for VOD content and will enhance the attractiveness of our VOD platform," said Brian Roberts, CEo of Comcast, in the statement...
USA Today: This is the first major VOD deal between a cable operator and a Hollywood studio and could be an icebreaker. Hollywood has been protective of lucrative DVD sales, offering relatively few big films to VOD -- and usually only after giving retailers and rental stores such as Blockbuster a 45-day head start.
LAT: (reg. req.) Owning MGM also could give Sony added clout as it tries to steer the entertainment industry toward the Blu-ray technology it is helping develop for a new generation of high-definition DVD players. [Sep.13, 04] |

Sony Agrees to Buy MGM for Nearly $3 Billion: (Update: The formal release on acquisition is out) The 4,000 movies library is sure to benefit Sony Connect's online movie/video plans, and hopefully online movie service Movielink, in which Sony is an investor...
Related:
-- Sony Connect's Video/Movie Plans
-- Sony's Plans on Video Downloads
-- Sony Connect Has Plans Beyond Music [Sep.13, 04] |

Sep. 3, 04
Apple Offered Sony iTunes Carriage: An explosive story..well, would have been. Apple CEO Steve Jobs offered Nobuyuki Idei, CEO of Sony Corp., the chance for Sony to come aboard Apple's iTunes Music Store service, back in January, according to this story.
Jobs is reported to have wanted to bring the Sony brand into the service to maintain a competitive advantage over Microsoft, which launched a beta version of its MSN Music store earlier this week.
Sony launched its own music service called Sony Connect, earlier this year. [Sep. 3, 04] |

Sony Reorganizes Digital Division: In U.S., Sony is realigning its digital division that will consolidate its digital services platform operations under recently appointed CTO Phil Wiser.
Among the changes taking place is the resignation of Sony Pictures Digital Networks' executive vp Patrick Kennedy. He will not be replaced. Internally, the effort to provide a uniform technology platform for Sony's services has been under way for several months.
Variety.com: The digital services platform group's stable of software engineers is charged with developing the technology used to operate various Internet-based entertainment ventures such as SonyPictures.com, SoapCity, Screenblast and Movielink, as well as services such as Sony Pictures Mobile and online promotional arm Sony Pictures Integrated Network. [Sep. 3, 04] |

Aug.24, 04
Sony Details Of PSP Inside: A technical story on Sony's upcoming handheld game and other multimedia player...
For some more layman like details, read this CNET News.com story... [Aug.24, 04] |

Sony's Cooperating Across Units..Really. No, Really.: An interview with Chris Deering, president of Sony Europe, on how Sony has gotten its act together and working across various units, including digital like Sony Connect, Sony Music, and Sony Pictures.
For instance (sub. req for the actual interview), "Sony Electronics has announced and is commencing the download business called Connect. And that involves talks with many [music] labels, and certainly negotiations with Sony Music, and a familiarity with the issues facing the industry.
There is another initiative from Sony Electronics which we refer to as the PMA (personal media assistance service) has now become a service that is made available to mobile operators that allows them to sell subscriptions for personalised streaming music ? you might say a personal radio station. That involves negotiations with the music labels and with the mobile operators." [Aug.24, 04] |

Jul.28, 04
Sony's Profit Soars In Latest Quarter: Sales sagged in every business area except music...I want numbers on Sony Connect, but it is too early, I suppose... [Jul.28, 04] |

Jul.13, 04
Sony Connect's Video/Movie Plans: As I reported here first, Sony has plans to move beyond music, with its new Sony Connect service (Should I be angry with this chest thumping by other media organizations?), Sony will extend its music service Sony Connect to include video content for portable devices and PCs within 12 months. This story in an interview with Michael Lynton, CEO of Sony Pictures Entertainment.
Sony's consumer electronics arm is developing a number of portable devices that are able to download and play films and video programmes.
The system would include sophisticated copy protection mechanisms. It is believed that Sony's content would be downloadable only to those portable devices compatible with Sony's technology.
The system may include movies from online movie service Movielink, though that hasn't yet been confirmed. Movielink is a joint venture comprising Sony Pictures, Paramount, Universal Studios, Warner Brothers and Metro-Goldwyn-Mayer.
(An aside: Movielink is looking at strategic options, including sale: Will Sony buy it? An enticing thought, since Sony already owns a piece it...if it happens, you'll hear about it here first, as usual)
Related:
-- Sony Connect Has Plans Beyond Music
-- Sony's Plans on Video Downloads [Jul.13, 04] |

Jul. 5, 04
Sony Connect Launches in Europe: Sony Connect, the online music service by Sony, has launched in Europe...it opened its sites today in France, Germany and the UK, and will extend the service to several other European countries by early next year.
Users can download songs from a collection of about 300,000 on offer at 0.99 euro cents ($US1.23) a go - the same price as Apple iTunes in Europe - but new hits are more expensive. The only devices capable of playing the songs however are those using the norms pushed by Sony.
For more on Sony's moves in the music market, read our dedicated company page... [Jul. 5, 04] |

Jul. 2, 04
Sony Connect to Launch 5 July, Late: In Europe, that is. Sony Connect, the online music service from Sony, will launch in the UK, France and Germany next week offering a choice of 500,000 songs.
The service will go live on Monday, 5 July in those three territories, followed by stores for Switzerland, Austria, the Scandinavian countries and the Netherlands by the end of the year. Spanish and Italian stores will open in the spring of 2005.
Like Apple, Connect will offer songs for ?0.79 in the UK and ?0.99 in other territories. [Jul. 2, 04] |

Imagine Sony On Steroids: Howard Stringer is shopping for movies and music. But will content sell gizmos? A story following Sony's big for MGM...That would give Sony Hollywood's largest collection of older movies just as new technologies for offering flicks on demand, over the Internet, and on DVD are taking off.
Sony "knows that getting a library is key to the Next Thing -- in this case video-on-demand or the Internet," says DVD pioneer and industry consultant Warren Lieberfarb [Jul. 2, 04] |

Jul. 1, 04
Sony Debuts 20 Gigabyte Walkman to Silence IPod: This news comes following Dell's potshot at iPod (read here) Sony has unveiled plans to launch a Walkman digital music player capable of storing 13,000 songs.
Dubbed the Network Walkman NW-HD1, it is the first major upgrade to the legendary Walkman brand on its 25th anniversary. It joins the "Vaio pocket," a digital player Sony unveiled in Japan in May. The Vaio pocket has a similar storage capacity and also carries a 53,000 yen price tag.
News.com: Both players will be available in fall for use with the Sony Connect music download service, which was launched in May. [Jul. 1, 04] |

Jun.29, 04
Sony Connect Launches in Europe Next Week (second item): Sony Connect, the online music service from Sony which was launched in U.S. with less-than-stellar reviews last month, is being launched in Europe next week, almost a week later than originally scheduled. The delay is due to "user interface issues" on the service's German and French sites, Sony said.
For all the news on Sony and its music efforts, read our dedicated Sony section... [Jun.29, 04] |

Jun.24, 04
Sony Recruiting Team For PSP, PS2 Network: This hints at Sony's plans for the network which will be designed to deliver content such as music and movies as well as providing strictly game-related services, as it has expressed a strong interest in providing this kind of digital content through its PlayStation platforms.
Earlier this year, it emerged that Sony has floated plans to create a unified PSP network access service by unifying providers of Wireless hot spots, allowing PSP owners to pay a single subscription fee to access in any Wireless-equipped location. [Jun.24, 04] |



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