October 23, 2008

Since Sony purchased BMG's half of the companies' joint venture, people have wondered what Sony will do to make the acquisition pay off. Leadership under one roof is a good start. That should have a positive impact by itself. Integration was brought up in the Sony Corp. press release that announced the acquisition. Said Sir Howard Stringer,

This acquisition will allow us to achieve a deeper and more robust integration between the wide-ranging global assets of the music company and Sony's products, operating companies and affiliates. It enables us to offer a total entertainment experience to consumers.

They key word there is experience. When I saw this post about PlayStation Home at the LA Times' Technology blog, I figured there is a good chance Sony will use it to promote its artists. Kind of like a Second Life for only Sony acts. The impact of Second Life concerts is an elusive topic. It has worked for some artists but has not been a game-changer for major music groups.

As "Rock Band" and "Guitar Hero" have shown, music fans will pay to experience music. That experiential segment of the industry will have strong growth in the coming years. People don't place much value on standard recorded music -- witness the frenzy surrounding free, ad-supported streaming -- but they do place greater value on other forms of consumption.

The post said Sony has not yet said if PlayStation Home will sell movies or music, and the only thing going on right now are movie trailers.

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Posted by Glenn at 1:52 PM |

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