Sony announced a new music service, called Qriocity, that will launch Sony into the digital music streaming business. Sony wants to shed its past failures at building iTunes-like music downloading service and delve into what it predicts will be a growing new segment of the digital music industry.
Sony is building this service into all the hardware products that it sells as well as offering it on their playstation network. Sony believes that introducing this service into its already stable and profitable playstation network will help get the new service running faster than starting from scratch.
Sony believes that consumers are tired of the limitations of downloading music and using iTunes for managing their music. As the article states, "The iTunes software has become an almost unbearable drain on computer power. More importantly, the public seems to have lost interest in buying downloads." I am interested to see how well Sony's Qriocity music service will penetrate the market.
Can Sony, as well as other music streaming services make a dent into Apple's market share?
What must Apple do to defend its market share?
Should Apple expand into the music streaming business?
Nice article Kaz
ReplyDeleteSony's new service is very interesting and will in fact finally enable them to be able to compete for some form of music 2.0 cash. I just dont think it will come in the form of current iTunes customers jumping ship in huge waves However
I feel that Apple will hold steady with its current revenues for a while since many of their current customers are heavily vested in apple device and the iTunes digital rights debacle.
Apple should buy Pandora in order to break into streaming business. Then based on peoples likes and channel selections within in Pandora they could offer discounts on iTunes purchases etc. Plus I think they need to Buy someone whom is already established in the living room in order to finally break into the living room with the Apple brand.
I think Sony's timing is fantastic. Those of us who are have not jumped on the Apple bandwagon are always looking at new options. Sony Playstation Network is much more popular among the younger generation (highschool, college) and they will use the services tied into the devices and networks they already have set up. This could greatly cut into iTunes share as users consolidate they're networks.
ReplyDeleteAlso, the recent outrage at Apple's decision to charge extra for accessing internet services (like Netflix) over your apple device (like iPhone or iPad)will turn users to other devices, networks, and services.
Players like Sony and Android will profit from this if they act quickly.
Sony is making a bold move by launching a music streaming service. Sony clearly has a media catalog that can be used as bait to drawn new customers to Qriocity, but in doing so Sony runs the risk of souring currently profitable relationships. Apple's iTunes store is currently the largest distributor of music, which includes selections from Sony's catalog. Although iTunes is profitable, it is viewed by Apple as a lost leader of sorts. iTunes is used to generate sales of the iPod. Although Sony has competing products it is very unlikely Qriocity will provide the same level of benefit.
ReplyDeleteIn an effort to limit Sony's advances, Apple should launch a streaming service. The new service does not have to match Sony's offering exactly, but it should provide enough similarities that it will negate the advantages of Qriocity.
The blog tied to the article were quite interesting as well. Audio streaming, $10/month. Logic error. Old people like me still use radio, high-tech older people are using satalite radio, maybe HD. The younger crowd are audio streaming or have already committed to iTunes with a committed volume of personal purchases. Those most likely to use the audio streaming are the least likely to pay for a subscription.
ReplyDeleteNetflix is working for PS3, X-Box, and WII, but that content isn't available on demand from other sources. I'd have to see what their capabilities are for interfacing with high-end stereo equipment and the ability to build, store, and share playlists.
I think they will not win this effort based on the current use ability of the itunes product; It is unprecedented. Apple’s market is excitable and will maintain the market for the distant future. Apple will maintain that share by keep their target audience excited about their products and innovation. Subsequently, it may make the most sense for Apple to expand their music streaming business; purchasing or a collaboration with Pandora may make the most sense in the area of enterprise market strategy.
ReplyDeleteI don't think that this effort will put a dent into iTunes. I don't see enough differentiation in Sony's solution to impact iTunes. If Sony can somehow tap into competitor's devices like iTunes has with their iPods, perhaps there would be something, but historically, Sony has held steady with their own formats. For example, the BetaMax, Sony camera use MemoryStick, PSP had a unique format for it's miniDVDs, and most recently BluRay. BluRay has caught on, however the others have not been as lucky. If it takes that same approach, I don't feel it would be successful. if they open it up and can attract musicians to use their distribution means versus iTunes, then it may be possible to be successful in this market.
ReplyDelete