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Marcus Yam (Blog) - September 5, 2007 12:15 PM

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13 comment(s) - last by mindless1.. on Sep 6 at 1:31 PM

Sony to launch PlayStation, Bravia video download service to compete against Apple, Microsoft

Part of Sir Howard Stringer’s plot to restructure Sony Corp. is to encourage greater synergies between various divisions of the Japanese company. One product of multiple Sony divisions working together maybe the development of a video download service that could spread across the PlayStation 3, PSP and Bravia televisions.

Sony will launch a service poised to compete against Apple’s iTunes store, and perhaps to a greater extent in the console space, against Microsoft’s Xbox Live Marketplace service according to the Wall Street Journal.

While Apple may have the lion’s share in the online music sales market, analysts believe that the video download market is still up for grabs. Various electronics and telecommunication companies are currently experimenting in the video download market, but there isn’t yet a clear leader.

“The real key is going to be who is providing the best high-definition experience for viewers,” says Kurt Scherf, a Park Associates analyst.

In order to launch a successful service, some analysts believe that a successful marriage between hardware and software must be achieved. Apple conquered the music market by tackling the software side with iTunes and the hardware with various models of the iPod. Sony may be able to replicate Apple’s success but in video with clever integration across the Japanese company’s product lines.

“We've been saying for years that if there's a company that can marry all this emerging content to products that people want, it's Sony that's going to make it happen,” added Scherf.

Another reason to believe in Sony’s aptitude in the video market is its ownership of various movie studios, including Columbia Pictures and MGM. Its experience in the movie business could give it a leg up on its competitors should other content providers view that Sony’s understanding of the industry make it a more appealing host.

Not even an approximate launch date is known for Sony’s download service, though various divisions of the company have slowly rolled out small, localized programs for video downloading. Sony announced last month at the Leipzig Games Convention that it will partner with Sky Broadcasting to provide the PSP users in the UK and Ireland with downloadable video. Prior to the launch of the PS3 in Korea, Sony officials responsible for the region stated that it was working with various broadcasting companies to offer video-on-demand services. Such video download services have not yet been confirmed for the North American market.

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Again with the HD remarks

By mdogs444 on 9/5/2007 1:11:31 PM , Rating: 1

quote:
“The real key is going to be who is providing the best high-definition experience for viewers,” says Kurt Scherf, a Park Associates analyst.

When are these people going to get the point HD is a nice to have, but not a necessity. The #1 thing that people look at for download services is price.

Of course to the small niche market right now who are Pro-HDDVD or Pro-BDDVD, sure we care about High Def content. But to the general public, High Definition is not a must have yet. Not everyone has High Defintion TV's, High Definition Tuners, or HD Capable Video Cards.

The PS3 is a nice piece of equiptment, that even the Xbox 360 fans will agree, that has a lot going for it - wireless, high definition (bd), etc.

But in case sony didn't realize by now with the PS3 fiasco, charging a higher price just because something is HD doesnt mean everyone is going to run out and buy it.

If they are going to offer HD contect for the same prices as other download services are offering standard content, then I can see it being somewhat successful. But charging a higher amount by advertising "HD Content" is probably not going to make people switch to Sony's service rather than iTunes and other services that they have already been using.

RE: Again with the HD remarks

By Locutus465 on 9/5/2007 1:38:40 PM , Rating: 2

Not sure how much Apple costs, but Video market place isn't more than a few dollars for HD content (per episode), with a discount for 480i content (buying HD also automatically buys you 480i).

Parent

RE: Again with the HD remarks

By ChristopherO on 9/5/2007 1:41:15 PM , Rating: 2

In fairness to Sony, I do think this is forward-looking. You are correct that *today* HD might not be a huge selling point, but all of today's brisk selling TVs have HDMI ports... Given that, I bet in a couple years the consoles will come with HDMI cables standard and the other cables will be optional.

Services like Live and whatever Sony calls this are really for the future. You just need to be in the game, otherwise someone like Apple will get there first and end up owning the market. And no offence to Apple (I'm a fan of their stock, not their products), but I really don't want them to be responsible for the "next wave of video." Their AAC and video download bit rates are a step in the wrong direction.

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RE: Again with the HD remarks

By h0kiez on 9/5/2007 3:48:51 PM , Rating: 2

Coming up with a store that works exactly like Xbox Live Marketplace and is meant to compete with that and iTMS is forward-looking?

Parent

RE: Again with the HD remarks

By ChristopherO on 9/5/2007 11:15:25 PM , Rating: 2

I didn't say it hasn't been done, but if everyone is opening up a video store, and Sony doesn't, that puts them in a really bad place. I just don't think the concept is going to be fully viable for another 5-10 years. Bandwidth really needs to get to the point where real-time streaming of HD content can take place.

Parent

RE: Again with the HD remarks

By mindless1 on 9/6/2007 1:31:52 PM , Rating: 2

Are you nuts? Practically nobody will want to watch HD movies from a gaming console, it's just the only way they were exposed to an affordably owned HD player as of yet. It's far too much of a niche market for Sony to ever consider it much of a success, unless they're merely trying to further entrench Blu-ray.

Sony and Apple are not going to be winner in this race. They're too goofy about trying to impose their ideas on the public. The public wants low cost HD-DVD players, and will settle for plain old DVD if HD costs too much, and they'll either rent these movies, buy them directly as they do DVDs now, or download them from the Movie Studio affiliated stores if (when) the MPAA pulls their head out of their arses and realizes what a goldmine they're sitting on once they price them affordably enough for one-time viewing that it isn't worthwhile to pirate them.

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RE: Again with the HD remarks

By Cheapshot on 9/5/2007 1:44:14 PM , Rating: 2

Well said...

Another thing to consider is the power a company would have that has truely Synergized to that degree. Once again it looks like the little guy loses if this type of global synergistic company comes to fruition. Illiminating potential competition in an arena that only Microsoft and a few others can compete.

Parent

Microsoft could put this to rest....

By Locutus465 on 9/5/2007 1:37:17 PM , Rating: 3

Buy allowing x-box video market place content to be stored on a Media Center PC, and synced to Zune... I'm not so sure Sony would have a good solution to combat that type competition. Sure, there's PSP, and you can watch content on your TV via playstation, but they lack the flexability being able to move content to something like a media center PC would offer.

the real winner

By konekobot on 9/5/2007 4:35:48 PM , Rating: 2

will be whoever does it cheapest and makes it easy.

i wish the government would step in and just level it all out. make it so that DRM is ok, but companies have to provide something like "DRM Codecs" that any media player can install to play the video files that are downloaded in whatever format.

Then it comes down to what it SHOULD be about... price.

Benefit

By afkrotch on 9/5/2007 11:58:17 PM , Rating: 2

Well, the benefit for Sony is that it'll unify all their applicable products. A video download service for computers, cellphones, PSP, PS3, PMPs, and whatever else I can't think of.