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Sony Launches Online Entertainment Store, Finally


By: The Online Reporter
Publish Date: July 18, 2008

Complete articles are posted three weeks after they have been sent to subscribers. To request a copy of the current edition, e-mail paperboy@riderresearch.com .




- PlayStation Portable Compatible, Too - Starts with 300 Movies, 1,200 TV Episodes - Rent & Purchase - Promises PS3 Will Be Center of Consumers' Homes Sony this week launched its long-awaited online service for delivering movies and TV shows to its PlayStation 3 (PS3) users who will be able to transfer them to the PlayStation Portable (PSP), a much-underrated device in the portable media player market. Sony Computer Entertainment America (SCEA), the operation responsible for PlayStations in the States, will initially offer nearly 300 full length movies and more than 1,200 TV episodes, many available in both standard-definition (SD) and high-definition (HD) through its PlayStation Network. The service, which both rents and sells, went online Tuesday evening. Studios that will offer sales and rentals are 20th Century Fox, Lionsgate Entertainment, MGM Studios, Paramount Pictures, Sony Pictures Entertainment and Warner Bros. Entertainment. Titles for rent only are from The Walt Disney Studios and a variety of television producers. Microsoft has had quite a head start on Sony with its Xbox Live online service for renting TV shows and movies that are downloaded to Xbox 360s. SCEA president and CEO Jack Tretton said PlayStation Network's video delivery service "capitalizes on the superior value and entertainment potential of PS3 and PSP ? not only for gaming enthusiasts, but also for the millions of consumers looking to buy the best, most versatile solution for their home entertainment system... The collaboration of Sony's film, TV and entertainment business units, coupled with our hardware and content offerings, provide consumers with entertainment experiences unlike any on the market." There have been 180 million games downloaded on the PlayStation network since November 2006 to some 10 million accounts, according to Sony. Sony has been criticized, deservedly and even by Sony chief Howard Stringer, for years because its various operations did not work together to integrate products and services into compelling offerings that could compete with the likes of Apple. It's still not certain how committed Sony's makers of TV shows and movies are to bringing their "A list" content to the PlayStation. Where, for example, in the PlayStation store is a "must have" film from Sony Pictures? How are Sony Ericsson mobile phones integrated into the service? Where are the songs from Sony BMG Music? Is there a way to connect PlayStations and Sony TVs wirelessly? The video delivery service is fully integrated into the PlayStation Network, as might be expected. Users have the same login, wallet management and user interface for video entertainment and games. A progressive downloading process means users can start viewing content shortly after the downloading process begins. Downloading is done in the background, allowing users to access other platform features such as gaming and other XMB (XrossMediaBar) content while a video is downloading. One of the biggest benefits of the PlayStation Network could be the ability to transfer digital content from a PS3 to a PSP. For the same purchase or rental price, consumers can also transfer content onto multiple devices. Sony said the connectivity between PS3 and PSP platforms "provides a seamless solution for those looking for entertainment experiences on their own terms ? on the go or in their living room ? all with a new-found freedom of not having to worry about TV schedules, movie listings or viewing on a desktop PC." Sony's not the only one in this market. At The Cable Show, Panasonic was showing a portable DVR with a viewing screen that had Comcast's name on. It allowed users to record TV shows and movies and watch them on the go. Panasonic said the device allowed users to take with them all the very latest episodes of the favorite shows, not just older shows that had been rented or purchased. The Offer Videos will be categorized by top rating, alphabetical order, television shows and movies. Content is fully searchable, for example, by title, producer, studio and cast. Initial feature length films are 20th Century Fox's "Jumper," Lionsgate's "3:10 to Yuma," MGM's "Rocky," Paramount Pictures' "Cloverfield," Sony Pictures' "Spider-Man," Warner Bros. Entertainment's "10,000 BC" and Disney's "Pirates of the Caribbean: Dead Man's Chest." An example of original exclusive content is "Xam'd: Lost Memories," an anime series that Sony Computer Entertainment Japan produced. It's available in both SD and HD. Pricing & Policy Rentals: 14 days to watch, 24 hours once the viewing begins. Prices will range from $2.99 to $5.99. Purchases: Prices will range from $9.99 to $14.99. DRM Sony is using Marlin Digital Rights Management technology, an open industry standard for protecting and managing digital content, to provide consumers with flexible access to their content while ensuring digital rights are protected. Usage rules of the video download service will allow content for purchase to be shared on multiple activated devices ??including PS3 and PSP systems ??per PlayStation Network account, depending on the type of content purchased by the user. Comparing Apples & Sonys Apple expects to sell 10 million iPhones in 2008. There were lots of games introduced for the iPhone in recent weeks including the classic "Pac Man." Sony expects to sell 15 million PSPs this year. BT and Sony have an agreement in the UK that allows PSP users to make phone calls over a Wi-Fi connection. Yes, you are reading this right... iPhones are moving into the game market and PSPs are moving into the mobile phone market, only in the UK, at least for the moment. May the best, er, device win. Comparing Apples & Sonys Worldwide projected sales in 2008 Projected 2008 PlayStation Sales (in millions) North America Worldwide Source: Sony Note how well the PlayStation Portable (PSP) is selling. PS3 1.8 10 iPhones 10 million PSP 1.6 15 PlayStation Portables 15 million PS2 1.5 9 New PS3 Model with Built-in 80GB Drive While launching the PlayStation Network, SCEA announced its latest hardware moves for the PlayStation 3. Starting in September, the newly announced $399 PlayStation 3 80GB model will become the flagship product, replacing the 40GB model, which was also priced at $399. Like the 40GB model, the new unit will come with a Blu-ray player, HDMI output, an integrated Wi-Fi connection and the Cell Broadband Engine, but will step up to a built-in 80GB hard-disk drive. Ever since the HD DVD disc bit the dust, Microsoft has not had a high-definition drive to sell with its Xbox 360. It has said it expects downloads of games, TV shows and movies to replace the need for physical media such as Blu-ray and DVD discs. Just in case, perhaps, Microsoft this week launched an adaptor that can connect an external Blue-ray drive to the X-box 360. Sony says the PS3's hardware capabilities combined with more than 140 exclusive and third-party titles and the new PlayStation Network will provide something that will appeal both to hard-core gamers and general entertainment enthusiasts. For the PlayStation Portable, Sony announced some new games bundles, a movie on the UMD disc the PSP uses, a voucher for use on the PlayStation Network and a 1GB Memory Stick PRO Duo for storing music, videos, photos and other files. There were also some new bundles for the PS2, which Sony said is the most successful gaming console in industry history. It promised to launch more than 130 new titles for PS2 by year-end, bringing the grand total to more than 10,000. SCEA's Tretton said the company is focused on delivering products and services that "extend the strength of our brand and reaffirms PlayStation's place at the center of consumers' homes." The question is whether Sony can move fast enough with digital media enhancements, online media services and content plus new games to catch Microsoft in the market for home-based gaming/digital media consoles.