Monday, April 21, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Sharp Improves LCD Viewing Angle With New Optical Film
Ex-Apple CEO To Sell Mobiles In India
HTC Hired Ex-Samsung Marketing Officer
Xbox One Wolrdwide Sales Cross 5 million
Samsung Works With GLOBALFOUNDRIES On 14 nm FinFET Offering
Facebook To Find Nearby Friends
Console Sales Lift AMD's First Quarter Results
LG Expands 'Second Screen' TV Ecosystem With Open-Source SDK
Active Discussions
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
IBM supercharges Power servers with graphics chips
Werner Vogels: four cloud computing trends for 2014
Video editing software.
 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 Offers New BRAVIA 4K TV Line-Up, Media Player and Content Options
Sony Warns of Battery Issue in Vaio Laptops
Sony Releases New 2TB Hard Disk
Sony's New α7S Full-Frame Camera Outputs 4K Video
Sony To Cover 2014 FIFA World Cup In 4K
Sony Introduces 9.1ch digital Surround Wireless Headphones
New Sound Bars, TV Sound System And Full-HD 3D Projector by Sony
Sony's High-Resolution Audio Line-up Coming To Europe
Sony Releases New Digital Paper
Sony To Sell Building and Premises In Japan
Android KitKat Update Coming On Sony Xperia Z Ultra, Xperia Z1 and Xperia Z1 Compact Smartphones
Sony Introduces "Project Morpheus" Virtual Reality Headset For PS4

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 .