Sony Has 7 Months to Make Qriocity a Success Before Apple Takes Control

In December 2010, Sony began rolling out Qricoity Music Unlimited, a music streaming service that would enable Sony devices like the PlayStation 3, Bravia televisions, and Blu-ray players to have access to a library of over 6 million songs. The service first launched in the UK and Ireland and expanded quickly to France, Germany, Italy, and Spain in January with the US receiving it in February. The service comes at two price points, with $3.99 a month getting you the basic offerings and $9.99 a month landing you at the premium end of the service. What you think of the price point is an altogether different conversation, but the fact that Sony has been able to offer this service in so many different countries so quickly is something that should not be overlooked.

People often complain that they might not have Netflix in Europe or lack of Qriocity in Canada but the truth of the matter is, most of the time, the blame is placed on the wrong provider. Netflix would love to be in every country and Apple would love to give every iTunes user the same music/movie/TV show access, no matter your residence, but the fact of the matter is that they cannot. This is in part due to complicated copyright laws and country laws. While Universal Records might have have the rights to Lady Gaga in the US, the same might not be true in Europe and while Sony Pictures made Zombie Land, don’t be surprised if in the country you live, somebody else like Warner Brothers or Paramount actually distributed it. Add on top of that different legal requirements of the given country and you can quickly see why it’s not as simple as flipping a switch at Sony HQ and offering a service like Qriocity to other countries.

This brings us back to Qriocity and why it has 7 months to live. First, I have to say that I’m currently using Qriocity and although it’s not a service for me—and it’s not because I use other streaming services—I get it and like it. Many people don’t feel the need to own their music. Instead, they want a radio that is catered to them, and that’s what Qriocity basically is. It is a radio station that gives you access to millions of songs while allowing you to be the DJ. I realize that the future is in the cloud, so services like Qriocity and Pandora will eventually be the way, and Sony knows this too. But there is another slumbering giant that knows this as well. Apple singlehandedly changed the music industry with the iPod and iTunes, and while I won’t be getting into a history lesson about it, it’s an understatement to say that Apple has leverage and experience when it comes to negotiating deals and offering them in a consumer-friendly way.

In late 2009, Apple quietly purchased a small music streaming service called Lala and soon after began building the world’s largest data center. Apple not only knows that the future is in the cloud, but is also building a robust infrastructure to support their future plans. It’s no secret that when Apple releases a product, it’s a big deal, and it’s also no secret that every September, the iPod and iTunes family gets refreshed. With the data center now nearly complete and with two silent years come this September, you can bet that Apple will be announcing an iTunes music streaming service on top of their current standalone iTunes offering.

The minute this happens, Apple will have dwarfed any offerings from the likes of Sony because of sheer scale. Now every Mac, PC and iOS device like the iPod Touch, iPhone, iPad, and AppleTV will have access to their streaming service. Mix this with Apple’s relentless advertising campaign and you can see how a service like this will be if not an instant hit, far ahead of Sony’s Qriocity Music Unlimited. But despite these last two paragraphs, this is not a doom and gloom article for Qriocity. Instead, it’s recognizing what Sony is capable of doing if they use their might.

Editorial: How Sony’s PlayStation Can Win Back the Consumer

During the late 90’s and the early 2000’s, the word gaming was synonymous with PlayStation. We were the PlayStation generation. As Xander Cage said in the action movie XXX “You have a bazooka. Why don’t you blow some shit up? Stop thinking Prague police and start thinking PlayStation“. If there was a commercial or Hollywood movie, if there was a gaming device in the background, it was a PlayStation 2. When the duo sat down for  a scene to play games, they had PS2 controllers in their hands and when there was a skit from the Daily Show or SNL, the game cover would belong to a PS2 game.

What’s changed since then is the one-year head start Microsoft had with the Xbox 360. Mix that with the rocky and high price point the PlayStation 3 had in its initial three years and you can see how Sony fell behind in the lime light. Plus, there is this misperception that the Xbox is really far ahead of the PS3. It’s because of this that the PlayStation 3 exists in a now alternate twilight zone universe of the late 90’s and early 2000’s where it has been replaced by the Xbox 360. When Turk and J.D sit down in Scrubs to game, they’re “fraggin noobs on the 360“. When the Daily Show with John Stewart runs a skit on the absurdity of banning video games, the game they are holding is a 360 game. And of course when Target or Walmart are running an ad, showing a family in the living room, on both print and commercials, they are playing the Xbox 360. This gradual bombardment has slowly taken the 360 to a pop culture status where now gaming is synonymous with the Xbox. Sure Microsoft itself pays heavily for its products to be advertised, but part of it is still the cultural status of the 360. When the PA gets assigned to go pick up a prop, they reach for a 360 game, and when the advertising company is finishing the set, the Xbox is what they place. So this has not only shifted the image for the younger audience that gaming and the 360 are the same, but for the parents as well. That means your mom is much aware of the Xbox; guess what she might reach for during the next birthday or Christmas?

Editorial: My PS3 Facebook Dream

I have to admit, I’m kind of a Facebook whore. I have it on all my devices. See our Sony Dash review. I have it on my iPhone and iPad and I enabled it on day one when Sony allowed for it on the PS3. However, I think the experience has left a lot to be desired for. The good news is not only that I  have a game plan here, but it’s something that’s fairly easy to implement.

So first, lets start off with what I like about Facebook on these devices. I like how if you currently gain trophies, it posts them on your Facebook feed. It’s nice to show what you gained and it tells your friends what your playing. I also like it when you purchase something, it again posts it to your wall. How else would people know how many different adorable Sack Boys and Girls I have! But beyond that, there is not a whole lot more.

The idea of Facebook is to be in touch with people and let them know what you’re doing/thinking. If we pause for a minute, PSN sort of does this as well. You can see people’s statuses by going on your friends list, what game they are playing and a little blurb on top of their name. The problem is that currently there is no convenient way of changing that, so for most people, it stays the same. The first implementation that I would do is, when you change your “blurb” on PSN, it updates that to your Facebook. “So-and-so thinks MAG is awesome”. To really go the extra mile,  let’s give users the capability to update your Facebook from your PSN, but also, if you update your Facebook status from your Mac/iPhone etc., it should also update your PSN. I think that single move will give PSN a sense of fluidity and “currentness”, for lack of a better word. It’s much more up to date on what you’re doing and is now much more socially integrated into your life. This seems like a very possible and easy setup on Sony’s part that will give PSN a very social pulse and put it out there more.

Other things I would like to see, though they are a little more out there, are to be able to upload pictures and videos to your Facebook. Currently, some games allow you to to take screen shots or record videos and put them on YouTube. Why not Facebook as well? The key for all of this is two-sided for Sony. It first gets people to interact with your content which is always good. “Oh hey, awesome kill in Uncharted, I should go back and play that and try that too”. Also, it’s free advertisement for them. So if you’re listening to this, Sony, and would like some more ideas, I’d love to give them to you. Contact Us?

Sony Ericsson Posts Surprise Profit

It’s no secret that the Sony Ericsson team has been in trouble the last few years. They have no clear strategy and a wide support of OSes, including Symbian, Windows Mobile, Android and some in-house Sony OSes as well. Regardless, Sony Ericsson posted a €21 million, besting analysts who were expecting a €128 million loss. This marks their first profit since Q2 of 2008. SE managed to bump the average handset selling price to €134 on 10.5 million sold compared to the 14.5 million sold at an average of €120 a year prior thanks, in part, to the launch of its X10 and Vivaz. However, all of this comes at a cost of a decreased global market share of 5% to now 4%. Also to help with this profit was a slashing of employees and some facility closing so this might end up being a short term win. However, we hope that this gives Sony Ericsson enough time to be formulating what we hope is a strategy behind closed doors and will begin some form of road map and not random headsets. A starting point for them would be to leverage the Playstation Brand and PSN Network? A PSP Phone with access to all PSN content and PSN friends list? That would put them right in par with the Windows 7 Series Phone Xbox Live integration and the new gaming network that will be introduced in iPhone OS 4.0.

[Via WallStreet Journal]

More Affordable Sony Vaios On The Way

When Sony launched its Vaio brand in the late 1990’s there was excitement in the air of the tech industry. There was no Apple dominance or design at the time and there weren’t many big players in the laptop market yet. This meant that Sony was able to leverage its brand name, quality, and design to come out with some beautiful units. Even as late as 2005, Sony laptops have been thinner then others, with better screens, battery life and quality than the comparable HP or Toshiba computers. On top of that, Sony always had design on their side as they made sure they were more elegant, catchy and edgy than their competition. However, starting as recently as the early 2000’s, their growth in the computer market began to change. The Vaio Desktops all but disappeared (now, there exists only one series of touchscreen, all-in-one desktops that I will soon write about). This has left them with their laptops.

First, we have to recognize that this isn’t a bad thing. The downfall of desktops has been a tech industry trend as laptops get more portable, affordable and powerful. As a society, we no longer want to be attached to one room with our computers. We can therefore forgive Sony’s fall in desktop production, albeit unplanned on their end. This brings us back to the laptop, the growth sector. Anybody who has used an HP laptop in the past knows how unreliable they were and how lacking they were in any form of design. Those who have used Toshiba laptops are all well aware of the design factor and how clunky those units were. Yet in the opposite world, Sony would provide design and form factor. As laptops got cheaper, it seemed like Sony did not want to recognize this change in the market. People began seeing a big price difference and no longer wished to pay a premium price for the Sony laptops. But as the prices of laptops continued to fall, the other players began to step up to the plate as well. HP began to offer more designs and flair to their units to attract new and younger buyers at a much lower price while Sony still offered only premium units. While there is a market for premium units, when 90% of the company’s laptops are catered to that ever-shrinking market, we can easily see the decline of Sony’s market share in the laptop category. The other 10% of laptops Sony offered seemed like stepchild laptops. They had no real design or grace; they were just cheaper and slower while HP, Dell and Toshiba offered faster, more attractive designs with better prices.

Now comes news that Sony is looking to provide more affordable Vaio laptops. According to the recent announcement from Sony Vaio’s Business Group, Vaio Laptops will have two divisions; the “division one” laptops which will be designed and manufactured by Sony, and the “division two” laptops which will be designed and manufactured by the third-parties and yet bear the same VAIO name. Of course, the minute I hear that, I think of products produced in China and worry about quality control, something that Sony and the Vaio brand prides itself on. Sony has gone on record and stated that “The quality criteria itself is no different between division number one and division number two.” Instead, the difference will be in the technology. “We will include new technology [such as the latest processors] in division number one first, and then we can learn and we can get the know-how, then we can transfer [the technology] to the products coming from division two.”

Although at first glance it might be easy to bash Sony over this, this might just be what Sony needs to reenter the growing market. We all saw how Sony entered the netbook market with the Vaio P and although it is a fantastic unit, $900 is not what a netbook is worth. That market is looking for a $300-$500 unit. Plus, the PC segment in sad truth at many times is not a market that is looking for extremely high quality products, as many consumers are more price aware. This isn’t to say there isn’t a premium market for PC laptops and that there isn’t a community of PC users who want/use better computers, but that the majority of growth is in the $300-$700 range. If Sony can successfully keep its costs down and offer competitive units in the lowered price range, this can be a nice new entry point and growth target for Sony. I also don’t believe that this means “junkier” units. Sony needs to keep a tight control on its Division Two units to make sure that the quality of their units, both externally and internally, are up to par. We have to remember that the highest ranked quality laptop producer out there is none other than Apple and all of their units, although designed in the States, are produced in China. Sony needs the same strategy. New bold and exciting designs, competitive features and an affordable price can help them get there. If it takes a two-division strategy to do this, then sign me up.

Sony Ericsson To Use Android 2.0

At a launch event over in Taiwan, SE Asia-Pacific’s vice president of marketing Peter Ang was quoted as saying that Sony Ericsson is hard at work on their next generation smartphone which is said to be based on Android 2.0. The good news here is that at least Sony is working on an open technology that gives them full control, but is an open platform that can easily expand, adapt and grow without being tied to a particular format. The bad news of course is that Android 1.5 isn’t even out yet, let alone 2.0. With that in mind, I highly doubt that, behind the scenes, Android 2.0 is so far along in production. I see this as meaning only one thing, don’t expect these guys before fall of 2010, easily.

The big problem here is that Sony Ericsson is hurting bad. Profits have dropped 50% over and over and the rumors keep coming that the two companies may split.  All this just puts added pressure on a company that’s on the edge. Now, the good news is though that Sony is at least developing these phones and if they can come out with something that’s really different and maybe part of a larger plan, they have a chance at redeeming themselves and establishing themselves as a game changer. The reason is this: the iPhone wasn’t the first smart phone but it was the first one for the masses and this truly set up for the growth that the smart phone sector is seeing. A lot has came out since then, but it was again the G1 that gained attention and now the Palm Pre is earning its place. This means that the majority of people are just starting to transition to the smartphone market. As good as the Sony X1 is in the Mp3 market, I feel like that market is already fully owned by Apple and they are starting to go towards the smartphone market (Why have an iPod and a phone in your pocket when you can have one device that does both?). If the smartphone market is truly just beginning to grow, then Sony is still not late to the party, as long as they bring a product that’s part of a community of Sony services, yet is open and part of a longer term plan.

[Via Slashphone]

PSN Achieves 14 Million Users. A New Game Plan for Sony

 

On the two year anniversary of the PS3, PlayStation director of hardware marketing John Koller has announced that PSN (PlayStation Network, other wise, known as your friends list and the PlayStation Store) has hit the milestone of 14 million users. What makes this more astonishing is that 4.2 million more users then just one month ago.  John Joller went on to say:

PlayStation Network has truly hit its stride with unique downloadable games and a video delivery service featuring movies, TV shows, and original programming that you can watch in HD with your PS3, or bring with you on your PSP. And with 14 million active accounts and 273 million pieces of content downloaded, we know that you’re thirsting for this digital entertainment.

What makes this piece of news even more exciting for PlayStation fans, but more so for Sony should be that this puts them neck in neck with Microsoft’s X-Box Live thats had a year head start on the 360 and user wise, was available during the entire lifespan of the Xbox/PS2 era where Sony offered no such service.

Part of this winning strategy I believe is due to the value of PSN and that value is that its free. Unlike X-Box Live where there is a $60 yearly charge that keeps alot of users offline and away from content that they might wish to pay for, aka profits. We have also seen Sony now offer the PSN store on the PSP systems where with a Wi-Fi connection or through their PC (No Mac support yet, wth Sony), they can download and purchase content. Although currently no buddy list and messengering system is available for the PSP, it is a good start. 

I am personally a huge believer in PSN because I see it being part of a further strategy that can really set Sony apart then the X-Box 360 and Wii, but also help Sony catchup to services like X-Box Live and iTunes where Sony’s Connect service failed.

First, I believe that its great that Sony offers the PSN store through the web for the PSP (although in a new update, you can access it from Sony’s PSP Manager program but you have to purchase that). But to really capture the side entertainment functionality of the PSP, Sony needs to offer that program for free. Instead of people download other free programs, create a system and then sell content through it. Like iTunes. The iPod is only as great as its content provider and Apple has done an amazing job with iTunes. Sony needs this. Once there is an official program, it will be much easier for the nearly 40 Million PSP users to get content for. This of course, then ties back into PSN. Sony needs to make PSN its key weapon. Instead of having multiple services that are different for the PSP to the PS3 to the walkman and Bravia, have one source. Now, under a unified flag, you are able to give content to over 100 Million devices out there. This first and foremost creates an echo-system for Sony. Meaning, I can feel confident about purchasing content and knowing that I can take it between my devices and more so, ill feel safe and thus purchase more. Second, it gives Sony a great negotiating chip. Instead of saying we provide content to 14 Million users, when they go to Fox and WB and the music groups and game developers and so forth, they can now state that they command a 100 Million + users base. Then, providers will be put in a situation where they will want to give content to Sony and Sony can not only negotiate better pricing for themselves, but for their users as well that in long term, turns out better for Sony. Plus, we must not forget, Sony is a large Movie Studio and even larger Music Studio with Sony Pictures, Tri-Star, and Sony/BMG. They on their own can start this concept and have companies sign on as they see the potential.

This thought process really came to be when I was logged onto PSN and downloaded some great 1080p free content from some Sony like Sara Bareilles – Between The Lines that was of a concert she had and Incubus “Look Alive”. This then got me to think of the current state of the music industry. First, these concerts looked fantastic and yes they are being offered on Blu-ray but somebody might not go out and purchase a BD disc, just for that artist so why not offer first, a music tab under PSN. I mean hell Sony, your giving your content to iTunes and DRM free on Amazon, so why not your own network. But second, I believe that yes, a lot of people pirate music, so why not capitalize on the industry in other ways. Offer free videos and paid videos of these artists. Behind the scenes content and concert footage. Not only does this help promote your artists but users might be much more open to the idea of downloading a concert for their enjoyment for lets say $10 then to go purchase an entire DVD or Blu-ray. Plus, while their PSP or PS3 is on, they can just scroll to the content and start it up. Again, this is what iTunes was able to achieve, ease of use and I think Sony can offer the same and up them one if they embrace it properly.

The argument of this would be that this could eat away into their Blu-ray sales and I don’t agree with that. For me, downloading a movie is just not an option the picture and sound quality and behind the scenes content and now, more interactive content from Blu-ray Live is only offered to me on Blu-ray. But music and music video content is different and is much more casual. And also, I truly do believe that more of this content needs to be free. Why? Because it creates value where there needs to be real value and thats for the artists. Get people excited for their up coming tours, offer free Themes and Music Videos and free or lower priced concert videos. This will get fans excited and next time there is a tour near by, they will easily cash out that $60+ where the real money is.

Again, once this echo-system is in place, we can also see a much more unified marketing front for Sony or whoever else that wants their content on PSN. For example, why was there no new or exclusive content for Sony own 007: Quantum of Solace film? No front banner, theme, Alicia Keys (Sony Artist) video, behind the scenes video, press releases. Nothing. Again, if you are commanding a 14 Million + and with my vision, 100+ marketing, why would you ignore it?

Once a true structure is set for PSN, Sony has the opportunity to achieve something very unique and yet competitive with the likes of X-Box Live and iTunes and Sony dosen’t even need to look to outside providers to start this off. Sony needs to only look inward to see all the media it holds. The video store is a good start, but there is much work to be done Sony.