Hollywood wants PSP to compete with iPod
In a recent CNET article, Forrester Research analyst James McQuivey explains Sony's lost opportunity to capture the media download market. Due to their fixation on UMD, Sony has let Apple hold a near-monopoly on digital downloads. "The thing is, Sony could have been all this. The Sony PSP is one of the best portable entertainment media devices that anyone has come up with in years. It has a relatively big screen, plays video beautifully, has good storage and audio. It could have been the first big mobile carrier for TV shows and movies."
Even now, Sony continues to stand by UMD, instead of offering a true video download service for the handheld. Sony seems content with their position: their attempts in Japan have been lackluster at best, and PSP's video playback remains crippled due to incomprehensible video restrictions. "You got a company here that's pushing its own approach on every level, and as a result nobody is using its memory stick or video format," McQuivey said. "So you don't have the same robust market that you could have had if you said, 'We're going to open this up. You can put your Windows Media files on here. You can put your QuickTime files on here.'"
All hope is not lost, however. A Hollywood executive spoke anonymously to CNET, noting that many Hollywood executives are "pulling for the PSP to emerge as a competitor to the iPod." Many executives are afraid that Apple will maintain a monopoly over movies as it has had over music. Competition is good for the consumer, and the companies making the content. A PSP video download service makes so much sense, but it won't happen until Sony stops making lame excuses. "But Sony has been so dysfunctional and clueless when it comes to the Internet," said the executive. "We keep hoping they pull themselves together ... with the PSP video, we're hoping they create a forward-thinking strategy and stick to it."
Even now, Sony continues to stand by UMD, instead of offering a true video download service for the handheld. Sony seems content with their position: their attempts in Japan have been lackluster at best, and PSP's video playback remains crippled due to incomprehensible video restrictions. "You got a company here that's pushing its own approach on every level, and as a result nobody is using its memory stick or video format," McQuivey said. "So you don't have the same robust market that you could have had if you said, 'We're going to open this up. You can put your Windows Media files on here. You can put your QuickTime files on here.'"
All hope is not lost, however. A Hollywood executive spoke anonymously to CNET, noting that many Hollywood executives are "pulling for the PSP to emerge as a competitor to the iPod." Many executives are afraid that Apple will maintain a monopoly over movies as it has had over music. Competition is good for the consumer, and the companies making the content. A PSP video download service makes so much sense, but it won't happen until Sony stops making lame excuses. "But Sony has been so dysfunctional and clueless when it comes to the Internet," said the executive. "We keep hoping they pull themselves together ... with the PSP video, we're hoping they create a forward-thinking strategy and stick to it."









Reader Comments (Page 1 of 1)
Colin @ Apr 30th 2007 2:24PM
Nothing that PSP owners/supporters don't already know.
Hopefully the move to DRM free content will allow PSP owners more choices...
Colin @ Apr 30th 2007 2:29PM
And the contest is more against iTunes not the iPod. If content providers go DRM free than it will play on many more devices (including AAC on PSP)...but Apple will still be raking in the iTunes cash.
You have iTunes feeding iPod and now Apple TV.
Sony will compete with PSP and PS3 but where is the centralised content (Connect?).
Xbox has Zune and X360 but no single FEED...they need to bring LIVE/IPTV/Zune Market Place together.
Its the content boys...fix it.
txa1265 @ Apr 30th 2007 2:33PM
I would *love* to see Sony beefing up the video presence of the PSP, but anytime I hear about 'Hollywood execs' supporting *anything* (these are the guys who made 'fair use' illegal, after all) ... I get worried ... their ultimate goal is more money for them, less value for you.
navsimpson @ Apr 30th 2007 2:48PM
From all the hints that have been dropped over the past year, I had assumed that we would get an announcement within the next 2 or 3 months. I had read that the problem was developing a DRM system that satisfied everyone - which isn't a particularly promising sign. Still, I think that, even given the EMI deal, hoping for DRM-free video is still optimistic, especially from Sony.
On some level, you have to believe that with Memory Stick prices now relatively affordable, Sony would actually take advantage of it and get things together. Even if they released something with just their own content, that'd be great. People would definitely pay money to buy episodes of Seinfeld. I also thought that the recent firmware that allowed for DVD-res quality videos was a preparatory step for a new download service.
It does seem like Sony are opening up very very slowly - the latest Walkman supports video supported for the iPod. Of course, it doesn't support video formatted for the PSP, so... still a ways to go it seems.
Colin @ Apr 30th 2007 3:02PM
@navsimpson
Re..walkman support for iTunes video...only non-drmd though right?
Still...wish that would come to the PSP as there are starting to be more and more video RSS feed that are incompatible with the PSP. (Still get my Meet the Press and Reliable Sources though!)
Alien @ Apr 30th 2007 3:54PM
And yet again , we hear something that we knew long ago . Its true , but its old . Sony really needs to focus on downloadable movies , songs , games etc. and especially for the PSP . That doesnt means that they have to forget about the UMD market . Just that they could easily support both .
navsimpson @ Apr 30th 2007 4:12PM
@Colin - yeah, only DRM-free. I meant podcasts and the like.
I too am really frustrated by the fact that most video podcasts - Ricky Gervais, CNET etc. - are in the iPod's format only, especially since I'm pretty sure the codecs are basically the same.
required @ Apr 30th 2007 4:16PM
http://playstation.joystiq.com/2006/10/17/psp-second-place-behind-ipod/
kingofwale @ Apr 30th 2007 4:31PM
if Hollywood is backing PSP, we can safely say it WON'T be DRM-free.
but this is a good news by itself, at least someone's backing PSP. ;)
Maybe they will have their own downloading service. unlike Ipod, you get a nice widescreen.
mass production = cheaper UMD/Memory stick?
J @ Apr 30th 2007 6:08PM
I've had my PSP for a couple of years now and I have NEVER downloaded anything. Its just not a very strait forward process and all of the required file names are confusing. Although I'm probably a little too paranoid, I also fear bricking my system, so I have stuck to the UMD's so far and in doing so I feel as if I am losing out on my PSP's potential due to the process not being very user friendly.
Maybe I am mildly retarded when it comes to technical aspects of electronics, but I'm sure that if they want to compete with the ipod on a serious level then Sony needs to make the downloading process significantly more comprehensible to the average consumer. How can it even be a question to them of wether or not they will provide a PSP compatible site of Sony content? It seems like a no-brainer to me.
Colin @ Apr 30th 2007 7:10PM
@J
Browse the web...click on an RSS feed and then go to RSS feeds and stream it if it is audio or save it if it is audio or video (the PSP will know where to put it).
As for getting around the CNET problem so far I have Videora + PSP 9 working in tandem to auto convert the stuff and then I access it with the free PSP Media Server. But I can't get the PSPMS to work outside of my hotspot so it would be nice if CNET just played nice.
Johnny Lasley @ Apr 30th 2007 7:17PM
#1 Sony has bad history with downloadable content...Sony Connect, PS2 HDD, Playstation Network for PSP. Am I missing anything here?
Sony have the best engineers, bar none...but that is about it.
Hashbrown_Hunter @ Apr 30th 2007 7:58PM
Yeah, the main problem is not the iPod but the success of iTunes. Without iTunes, the iPod would be nothing. Worthless. The Zune Marketplace would be dominating if it didn't exist. Sony can redeem itself by making a piece of software as fantastic as iTunes...but it has to beat Microsoft.
While MS does have the Marketplace, it isn't working so well for the Zune. If Sony can launch an online marketplace (with lots of resources) before Zune's Marketplace shapes up, they could easily, VERY easily, compete with iTunes and iPod.
Honestly, I own both an iPod and a PSP and I love the PSP more. While I mostly use the iPod for my music, the PSP can do sooooo much more (and I'm talking about official features. I don't use homebrew). The only thing that is REALLY dividing the two is the software (and maybe the publicity/marketing)).
But wait...is beats. the software Sony is planning to use against the iPod + iTunes combo? It seems that way, but no one can say for sure. So if Sony doesn't do something with beats. or their promised Connect service for the PSP, they're screwed.
michae2414 @ Apr 30th 2007 9:31PM
It's unfortunate that this is the case for the PSP, but the analyst is right - as a multimedia-centric handheld, the lack of a proper video/music download service of some sort after two full years in the market is disappointing. The commitment to the UMD format is understandable considering the company's history, but as the iPod+iTunes combination has certainly proven, the right combination of digital distribution and the device for playing said content (in an easy and seamless manner) can do wonders.
Sony's PlayStation Store is a good start for the PS3 in terms of downloadable content, but IMO bringing it to the PSP and combining it with a re-designed Sony Connect service will put its networking and e-distribution hopes in the right direction for this generation.
Sony hasn't completely missed out on this opportunity yet...let's hope those "announcements" soon to come this year for the PSP bring this analyst's wishes to fruition, while there's still time.
farfisa @ May 1st 2007 11:56AM
Another thing that I think Sony should finally look at is the lack of a (reasonable) TV output solution for the PSP, especially if they want to be taken seriously as a video player. Even the first video iPod had TV out capabilities (and the iPod photo before it). It was even 320 x 240 and people ate it up. The PSP, in its latest firmware version, now supports DVD res video which is way higher resolution than the only screen it can play on. Think it's time yet?
I think the UMD failed in part because it wouldn't allow people to share their movies on a TV--sure it's fun to watch a movie on-the-go, but they're denying that watching movies can be a social experience. If the quality doesn't match DVD, who cares? They should worry less about cannibalizing their other markets (like non-portable consoles) and worry more about what would help make the PSP a walkman for the 21st century ;)
k0llateral @ May 1st 2007 2:36PM
They're forgetting something pretty key as to why "Sony is sooo dumb, they have an untapped market!" *rolls eyes*
The Ipod video has either a 30, 60, or 80Gb HDD, which makes it much easier and convenient than a PSP.
And considering most PSP owners dont have a card over 1Gb, it makes it sorta difficult to store more than one full length movie at a time...
If the PSP2 (or w/e) came with a decent sized HDD, then I think we would see Sony come out with a video service for it in a heartbeat.
Colin @ May 1st 2007 3:02PM
@Kollateral
But what the PSP DOES have is wifi and the ability to download movies from a PC or PS3 wirelessly on an as needed basis.
PSP Media Server is free (there are other prgs too) and I can access my home collection from any hotspot...so I basically have a 100GB (size of my media collection that has been converted for use on PSP) media player.
navsimpson @ May 1st 2007 7:47PM
@michae2414: Nice comment. It's funny though isn't it? Merging Connect and the PS Store seems like it'd be the first thing to occur to Sony... and yet, nothing. I think part of the problem stems from how notoriously bad Sony is at inter-department collaboration. If the Digital Audio and Playstation depts made ties between the Walkman and PS brands and co-developed a content solution, you'd not only increase the brand presence of both (which both need), you'd also provide a broader solution for people looking for ways to access content. I still say a Playstation Walkman is the way to go, but something tells me it isn't going to happen.
@Hashbrown_Hunter: I sorta' agree with you about iTunes - but I mean the software, not the e-store. The amount of music on iPods that is purchased is actually quite low. But iTunes as a jukebox/transfer software works brilliantly. Media Manager may do the job, but it offers none of the seamlessness or intuitiveness of iTunes. Sometimes I think that if someone just bought Howard Stringer an iPod and made him use it for a month, something might actually change at Sony.