Sony reorgs floundering Connect digital music outfit

“Sony said Friday that it will strengthen ties between its portable audio division and the struggling Connect digital music download unit, an iTunes rival launched in early 2004,” John Borland reports for CNET News.com. “The Connect service was Sony’s entry into the digital music market that was, and still is, dominated by Apple Computer’s iTunes. However, since its launch, Connect has gained little traction with consumers, while Sony’s portable audio players have been overshadowed by the explosive success of Apple’s iPod.”

“The download unit, now renamed the Connect Business Division, will be placed officially under Hiroshi Yoshioka, who oversees the portable audio division. In that position, Yoshioka will be ‘best placed to reallocate resources and promote both the portable audio and content distribution business,’ a representative said in an e-mail,” Borland reports. “Sony has felt Apple’s rise in the portable audio business particularly keenly, given that it was its own Walkman line of products that essentially invented the space beginning in 1979.”

Full article here.
Years too late, Sony. It’s over. Concentrate on TVs and other businesses from which you have a chance of profiting.

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9 Comments

  1. I believe that Sony’s best bet is to team with Apple, not compete against them.

    Sony is the only company with the software, hardware, and content (music/movies) to compete with Apple, but they have proven they just don’t know how (can anyone say ATRAC MiniDiscs?)

    Sony should use the leverage of the PS3 and PSP to get an exclusive deal with Apple to be able to play Fairplay DRM on their PS3 and PSP. It would be a win for both companies because Sony would be able to play Fairplay media and Apple could close Microsoft’s Xbox 360 out of the home media center market.

  2. Doesn’t matter if there was other portable audio stuff before 1979. How many units were sold per year before the SOny walkman. 100K’s. The walkman did sell 380 million units, so it was a revolutionary product. Now ipod is the new revolutionary product. Thats a lot. I am hoping apple sells that much to make apple more money in its coffer and get more people to switch to a Mac Computer. Thats why I don’t know why people are selling there AAPL stock. We got a long way to go. Just thinking about 380 million units. Apple is at 42-45 million right now. THis year hopefully 60 million, and then keep on getting repeat customers. Apple can be has long legs. It is nice to be a mac user and shareholder. If I had not bought my Powerbook and bought the stock instead, the 2K would have been 25K when it was at a all time high. That was just under two years ago.

  3. Forggeddabout d’walkman. It’s ancient history; and the “space” then looks nothing like the space now. Walkman, Walkman, walkman, walkman, walkman …. Geeze, one day I’ll be saying that about the iPod.

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