AFI BLOG: Media and Technology

The Los Angeles Times

The company is attempting to stage a comeback in digital entertainment distribution

Will the third time be the charm for Sony Corp.?

The entertainment and electronics giant is preparing to launch an online video service through its game console PlayStation 3 as early as this summer, studio executives familiar with the plan say.
The company has been in licensing talks with studios in recent weeks, according to these executives, who asked to remain anonymous because of the sensitivity of continuing negotiations.

The initial version of the service would include movies and television shows flowing from the Internet to the PlayStation 3.

It would follow two other disappointing online ventures backed by Sony in recent years: Movielink, which attempted to become the online equivalent of the video store for mainstream Hollywood movies before being sold last year to Blockbuster Inc.; and Sony Connect, the company’s response to Apple Inc.’s iTunes download service. It shut down in March.

The latest service, provided through the online PlayStation Network, is Sony’s attempt to stage a comeback in digital entertainment distribution. The maker of the once-dominant Walkman portable music player is still smarting from its defeat by Apple in the online music revolution.

“They’ve got to get a win in the digital, and I’d say on the electronic delivery side of the business,” said Kurt Scherf, an analyst with Parks Associates who studies technology in the home. “That’s where the future is. They’ve got to establish a toehold in that space.”

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