Derek Slater takes Sony to task over its new music-download service and iPod-like player.
Sony's acquisition of a couple of minor entertainment companies has had untold consequences. It's a poison pill that is killing Sony, one piece at a time.
Back from 1976-1984, Sony was the company that spent hundreds of millions on the defense of its VCR, bringing it all the way to the Supreme Court, arguing that the entertainment industry didn't have any right to its business-model; that if new technology could make the old business irrelevant, that was tough shit, and the movie companies needed to stop pewling and get with the program (they did, and made lots of money, besides).
But ever since Sony "acquired" Columbia, it's been acting like its electronics business was a minor business unit that couldn't afford to disrupt its precious entertainment arm (despite the fact that the entertainment arm's contributions to Sony's bottom line are minimal when compared to the gadget biz). When the first MP3 players appeared in the market, from little companies like Creative Labs, Sony brought out proprietary devices that played stupid formats like RealAudio and OpenAG, which no one wanted to hear. On the other hand, these formats did come with use-restrictions that kept Sony's music execs from getting too anxious and sad.
The result was that Creative Labs, a little outfit in Singapore, ate Sony's lunch, followed by a bunch of late diners to the table, including a bunch of no-name Korean companies, and most recently, Apple. Sony, who invented the walkman and made billions off of it, has now become an irrelevant player in the personal stereo market, with a market share that's barely a blip on the chart.
And Sony — a company legendary for tis ability to refine its designs to capitalize on lessons learned in the market — keeps on repeating the same mistakes, as Derek points out:
Apparently, Sony's hard drive player cannot play MP3s, WMA and (of course) Apple FairPlay-locked AAC. It only plays the Sony's proprietary ATRAC3 format; if it's like Sony's MiniDisc players, forcing consumers to convert to ATRAC3 also forces them to accept certain DRM restrictions. In related news, the Washington Post and New York Times both deemed Connect embarassing, noting its poor interface, proprietary DRM format and codec, copying restrictions … too many to count.
