Thursday, October 23, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Cloud and Surface 3 Drive Microsoft's Revenue
Micron Urges Investors To Reject TRC Capital's Unsolicited Tender Offer
Facebook Returns To Chat Roots With Rooms App
Sony SmartWatch 3 And LG G Watch R Are Rolling Out With Updated Android Wear Software
New Nvidia Driver Enable DSR On Older Graphics Cards
GT Advanced Technologies Reaches Settlement Agreement With Apple
Google Is Teaming up with Oxford University on Artificial Intelligence
Bonhams Sells Apple Computer For 905K USD
Active Discussions
Copied dvd's say blank in computer only
How to generate lots of different CDs quickly
Yamaha CRW-F1UX
help questions structure DVDR
Made video, won't play back easily
Questions durability monitor LCD
Questions fungus CD/DVD Media, Some expert engineer in optical media can help me?
CD, DVD and Blu-ray burning for Android in development
 Home > News > Consumer Electronics > Blu-Ray...
Last 7 Days News : SU MO TU WE TH FR SA All News

Thursday, September 16, 2004
Blu-Ray to Benefit from Sony Acquisition of MGM


With its acquisition of Hollywood film studio Metro-Goldwyn-Mayer, Sony Corp. is one step closer to its vision of linking hardware and content, and to winning the key battle for the next generation DVD.

Sony's acquisition of MGM will create the world's largest film library, about 7,600 titles, and would appear to fit nicely into Sony's overall strategy of creating synergies between its consumer electronics and its movies, music and games.

A group headed by Sony Corp. of America has agreed to buy MGM, the 80-year-old studio that owns the James Bond, Pink Panther and Rocky movies, in a deal worth about $4.85 billion including the assumption of about $2 billion of debt.

Analysts and investors are worried about the potential damage to Sony's balance sheet and have doubts about when and how the synergies between movies and electronics will be achieved. But they say the reasoning behind the acquisition was sound.

"The MGM library is a rich source of content and potential profits for Sony," said Kiyoshi Yamanaka, a fund manager at T&D Asset Management.

Sony also announced on Tuesday that it had reached an agreement with U.S. cable TV operator Comcast to offer Sony and MGM movies over Comcast's video-on-demand systems and on new cable channels that it would form with the Sony group.

This means Sony will also be able to generate cash flow by selling the Sony and MGM library of films on cable TV, in addition to the revenues produced by retail sales of DVDs.

Sony does not provide a breakdown of its DVD sales, but the company's music division recorded an operating profit of $318 million (35 billion yen) in the previous business year to March 31, on sales of $6.9 billion (756 billion yen), or about 10 percent of the group's total.

Sony acquired Columbia Pictures in 1989 for $3.4 billion, which at the time was the largest ever acquisition by a Japanese company. That deal caused numerous headaches for Sony due to losses from large budgets and box office duds.

The MGM purchase could help stabilize earnings in Sony's movie division, and may also advance the company's cause in the battle to establish a format called Blu-ray as the industry standard for the next generation of DVDs.

"One of the important aspects of this deal with MGM is that it may help Sony prevail in the DVD format war," T&D Asset's Yamanaka said.

Sony knows how important formats are, having lost out to JVC in the famous fight over videotape formats more than two decades ago, with JVC's VHS system becoming mainstream at the expense of Sony's Betamax.

Sony's consortium is up against a format called HD DVD, which is endorsed by Japan's NEC and others.

Both HD DVD and Blu-ray technologies use blue laser light, which, with a shorter wavelength than the red light used in conventional DVD recorders, can read and store data at much higher densities needed for high-definition recordings.

Sony would also look to use its larger library to capitalize on the spread of broadband Internet access worldwide, UFJ Tsubasa Securities analyst Kazuya Yamamoto said.

"Delivering movie content to the home online could become a lucrative business in the future as broadband access expands. Holding movie contents will become more valuable in that light," Yamamoto said.

From News.com



Previous
Next
Kano Technologies Introduces BLUE-WAV - Blue Laser Desktop Storage        All News        Asia Optical to set up subsidiary maker of optical components in Shanghai
StereoGraphics Releases the SynthaGram 404 Public Display LCD     Consumer Electronics News      Microsoft unveils IPTV-ready set-top box

Source Link Get RSS feed Easy Print E-Mail this Message

Related News
Sony To Release Android Lollipop To Its Entire Xperia Xperia Z Series
New Sony Headphones, Portable Headphone DAC/Amplifier and Headphone Cables Support Hi-Resolution Audio
Sony Xperia Z3 Coming To The US
PlayStation TV Coming October 14th
Sony Develops SmartEyeglass, Launches SDK
Sony To Offer Unity For PlayStation To PlayStation Licensed Developers
Sony Slashes Guidance Due To Poor Smartphone Sales
Pioneer Introduces New High-end Blu-ray Players At CEDIA
Sony Smart EyeGlass Prototype Appears At IFA
Blu-ray Discs For 4K Content And 4K Players Coming Next Year
New Sony Camera Shoots In The Dark
Sony Unveils New Xperia Z3, Z3 Compact And More at IFA

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .