Daily Archives: August 21, 2007

Another Little Blow For Sony

Sony (SNE) is not having its best year. As a matter for fact, it is not having its best decade.

Already troubled by slow sales of its PS3 game platform, SNE at least appeared to be making progress with it high def product, the Blue-Ray player. Its big partners in pushing the format are Panasonic and Samsung. The new PS3 comes with a Blue-Ray player, and SNE is hoping that this will help get the format out and sell films using Blue-Ray for their high def versions.

But, Microsoft (MSFT) and Toshiba don’t want to see that happen. They have their own format, HD DVD. And, Paramount and DreamWorks Animation have just picked up $150 million in financial incentives to use the HD DVD format exclusively. 

The New York Times writes that: "Studios that have lined up behind Blu-ray, including Disney and 20th Century Fox, said the move would heighten consumer confusion at a point when Blu-ray appeared to be emerging as the best choice." Of course, they have to say that because they do not want HD DVD to get a larger foothold and spoil their plans.

HD DVD is not going away. The battle between the two formats could go on for several more years, especially not that there is a precedent for paying studios big cash for exclusive content deals.

It looks like the studio have nice new line of revenue.

Douglas A. McIntyre

Posted on: August 21, 2007 – 4:41 am in Media, ,

MTV: Another Futile Run At Apple

MTV, a division of Viacom (VIA) is teaming up with RealNetworks (RNWK), the music distribution company, to compete with the Apple (AAPL) iTunes product. The new offering will have the MTV marketing muscle and distribution through the Verizon Wireless and Vodafone (VOD), the leader wireless carrier in Europe.

The competition against AAPL has all the hallmarks of a success. MTV is substantial global music brand. It is trying to diversify revenue off of its traditional cable TV platform. VOD and Verizon Wireless have about 150 million wireless subscribers between them.

But, the problem with these consortia is that they are made up of members with competing needs and interests. They are, by nature, operated by committee. And, this one is trying to catch a market leader which has the lion’s share of the music download business, over 120 million iPods, and the new iPhone.

A committee cannot compete with APPL.

Douglas A. McIntyre

Posted on: August 21, 2007 – 4:29 am in Media, , , , ,

Google Leads In Search Again

According to the new comScore measurements, Google’s (GOOG) share of the US search market is still growing, which does Microsoft (MSFT) and Yahoo! (YHOO) no good.

In July, GOOG share in the US rose to 55.2% from 46.2% in the same month a year ago. YHOO share dropped from 29.8% to 23.5%. And MSFT share moved down a click from 12.4% to 12.3%.

The rumors of MSFT making progress in search market share appear to be premature.

Douglas A. McIntyre

Posted on: August 21, 2007 – 4:08 am in Internet, , ,

Media Digest 8/21/2007

According to Reuters, Countrywide (CFC) sought to calm investors about it future as it laid of mortgage workers.

Reuters reports that Nasdaq’s (NDAQ) failure to buy the London Stock Exchange makes it deal to buy the OMX crucial.

Reuters writes that Nokia (NOK) launched it new 3G handset, the 6555.

The Wall Street Journal reports that Bershire Hathaway may be interested in buying some parts of Countrywide.

The Wall Street Journal writes that KKR said that in a worst-case scenario it would put $100 million into KKR Financial, a real estate operation in which it has a minority piece.

The Wall Street Journal writes that Paramount and Dreamworks will drop the Blu-ray DVD format and only release HD movies on the HD DVD format backed by Toshiba and Microsoft (MSFT). The move is a blow to Sony (SNE), Blu-ray’s biggest supporter.

The Wall Street Journal writes that Viacom’s (VIA) MTV and RealNetworks (RNWK) will combine online music efforts to challenge the Apple (AAPL) iPod. Verizon Wireless and Vodafone (VOD) have agreed to offer mobile distribution.

The FT writes that GE (GE) plans to sell its Japanese finance unit.

The FT reports that the debt in The Tribune Company (TRB) was downgraded ahead of its LBO.

Barron’s writes that McAdams Wright intiated Clearwire (CLWR) as a buy with a price target of $36.

Douglas A. McIntyre

Posted on: August 21, 2007 – 2:57 am in Press Digest, , , , , , , , , , , ,

Asia Markets 8/21/2007

Markets in Asia were mixed.

The Nikkei was up 1.1% to 15,901. Honda (HMC) was up 2.2% to 3870. Toyota (TM) was up 2% to 6,580.

The Hang Seng was up 1.4% to 21,907. China Life was up 4.3% to 31.5. China Petroleum (SNP) was up 2.5% to 7.49.

The Shanghai Composite rose 1% to 4,953.

Data from Reuters

Douglas A. McIntyre

Posted on: August 21, 2007 – 2:32 am in International Markets, , ,