Posts Tagged ‘Google TV’
Sony: “Make. Believe” Isn’t Making It Anymore
- Published on Monday, 08 August 2011 11:02
- Pete Putman
- 0 Comments
An August 2nd Reuters news story said that Sony is preparing to overhaul its LCD television business to reduce costs and attempt to remain competitive against the likes of Samsung and LG. That means selling off TV factories to Chinese companies such as Foxconn Technology (manufacturers of the iPad) and moving more and more to a Vizio-style rebranding model.
Sony’s TV business has lost money for eight consecutive years, which about as long as Sony has been selling Bravia LCD TVs. The company cut its sales forecast for the current fiscal year by 19% to 22 million units, and now there is talk among analysts of the possibility that Sony might exit the TV business altogether – something that is almost inconceivable, given Sony’s long involvement with television.
But the facts are hard to argue with. Ever since Sir Howard Stringer took over at the helm six years ago, Sony Corporation has lost 50% of its market value. According to the Reuters story, Sony is currently valued at just $25 billion, less than 25% of the market valuation of Samsung.
Over the years, pursuing profitability in the TV business has led Sony to form an alliance with Samsung (S-LCD), announce plans to take a 34% investment stake in Sharp’s Gen 10 LCD fab (later pruned back to less than 10%), and search high and wide throughout Taiwan and Hong Kong to find a competitive source for the smaller LCD panel TV sizes that still dominate the market.
Sony’s initial TV strategy was to position themselves as an Apple-like brand, getting people to pony up a premium for a perceived advantage in Sony product quality and engineering smarts. Trouble was; it was all too easy to surf the Internet and discover that smaller Sony LCD TVs were being sourced from many of the same manufacturers as 2nd-tier LCD TV brands.
Sony’s “own the manufacturing chain” business model was blown out of the water by Vizio, the ultimate OEM TV partner, who spent millions of dollars in advertising and went for the jugular with aggressive pricing in wholesale clubs and discount outlets. And of course, Samsung is responsible for much of Sony’s misery, given how aggressively the Korean TV giant followed its ten-year blueprint to become “the next Sony.”
It doesn’t help that 3D and Google TV have done little to stem the losses. 3D TV is still struggling to gain widespread acceptance and will likely become just another option built-in to all future TVs; one that cannot command a premium.
Google TV is even more of a bust. If you’ve ever had a chance to use the remote control for Sony Internet TVs, you’ll know why: It’s complicated and intimidating to use. People like the idea of watching Internet-delivered video, but they don’t want to search for it with a computer-like interface.
To make matters worse, the Sony name doesn’t command respect like it used to. Interbrands’ annual survey of global brands places Samsung 15 places above Sony. That is mind-boggling, given the strong brand equity Sony used to have.
The Reuters story states that Sony could lose close to a billion dollars this year in its TV operations, and that would push total losses to almost $5 billion since 2004. So the question is – how long will Sony continue to spill red ink?
One obvious solution to the problem is for Sony to wash its hands of TV manufacturing completely and instead license the Sony name to a line of OEM TVs, much like Kodak is doing these days with digital cameras and photo frames.
There is a precedent: Earlier this year, CE manufacturing giant Philips threw in the towel on its TV business, citing increasing losses and an inability to remain competitive even on its home turf in Europe. Going forward, Philips has licensed its brand to Funai for all future Philips LCD TV manufacturing.
By following this model, Sony could finally achieve profitability in the TV game. Ironic, isn’t it?
Google TV: Oops! Never Mind…
- Published on Monday, 20 December 2010 17:34
- Pete Putman
- 1 Comment
In a story reported by the New York Times, Google has asked TV manufacturing partners Toshiba, Sharp, and LG to hold off on introducing any new Google TV products at next month’s Consumer Electronics Show.
The official reason is that Google needs more time to refine the software. The real reason may be the lackluster reception that Google TV has gotten so far from consumers. The first sets to launch with Google TV were Sony Bravia TVs, back in October.
If any readers walked the aisles of Best Buy recently, you probably noticed the Google TV kiosk that featured an incredibly complex remote control – one that outdid Rubik’s Cube in complexity. The Sony Google TV remote featured two mouse disks and dozens of tiny alphanumeric keys, and was a sure turn-off for those viewers used to one-button navigation to Netflix and YouTube.
In fact, the question now is whether there is any real interest in using a video engine as part of a NeTV – or if consumers are happy with icons or apps that take them directly to Hulu, Netflix, or other content sources.
To make matters worse, major TV networks including CBS, NBC, and ABC are blocking their online programming from Google TV, as is Hulu. Given that the top-rated TV shows are carried by these “old school” networks – as is the current #1 time-shifted show, The Office – that’s not good news for early adopters.
Logitech’s Google TV set-top box has also met with indifference and disdain. According to the Times story, 38% of reviewers on Amazon.com gave the Logitech Google TV receiver three stars or less, and 19% gave it just a solitary star. Not good!
Does this mean consumers don’t like the idea of NeTVs? Not at all. What they DO seem to prefer is a limited number of directed channel apps for the most popular content providers, and not another Web TV-approach to merging computer and TV viewing…something that is akin to mixing oil and water.
Don’t bet against Google, though. They’ll eventually figure out what consumers want and don’t want. The question is; can they compete against the amazingly user-friendly TiVo interface and the ‘directed apps’ approach of companies like Samsung (also a Google TV partner)?
And is Google TV destined for success, or will it go the way of Web TV? (Challenge: Do any readers even know what happened to Web TV? It’s still around, although under a vastly different name…)
3CD: Well, that was fun. I’m bored. What’s next?
- Published on Sunday, 31 October 2010 21:23
- Pete Putman
- 7 Comments
I stopped in at my local Best Buy this past Saturday (10/30) to look for an inexpensive upscaling DVD player (yeah, I know that’s redundant) for my in-laws.
While I was there, I wandered around the store to see what was being showcased in the store demos. 3D, which was a big thing back in April, had clearly fizzled out – at least, as far as store personnel were concerned.
Of four possible 3D demo stations, only one had any glasses – the Sony Bravia 3D demo in the Magnolia section. A nearby Panasonic 3D demo had clips from Avatar rolling in 3D on a plasma TV, but not a pair of glasses to be found.
At the entrance to the Magnolia store was a Samsung 55-inch LCD 3D demo. Trouble was, the channel was set to a 2D telecast of the Michigan State – Iowa college football game and no 3D glasses were anywhere to be seen.
Behind the service counter in the regular TV section was yet another 3D demo, this time featuring the 46-inch UN46C7000 Samsung LCD TV. And just like my last visit, the TV was showing Monsters vs. Aliens in 2D, again sans 3D glasses.
A possible fifth demo at the end of one of the aisles used to feature Panasonic’s 50VT20 plasma, but it had been taken down. This was the only demo that had any working 3D glasses a few months back.
So, what was all the buzz about at BB this time? Why, Sony Internet TV, of course!
Yep, it’s time to get out on the Internet and dig for content, using Google’s search engine and Sony’s incredibly small and dense keyboard. I didn’t see a single person attempt to use it during my 30 minute visit to the store.
In addition to Sony’s support for Google TV, Logitech has a new set-top box you can connect to the Ethernet port on your existing TV – or to the HDMI input.
Sony also showed a new “Internet TV Blu-ray Disc Player” that incorporates the Google interface. It’s the silvery box in the lower middle part of the photo, and encourages you to “take advantage of Full HD 1080p Blu-ray Disc Capabilities.” (???) No mention of 3D anywhere in the exhibit, so there may be a ‘separation of church and state’ thing going on as far as Sony is concerned.
Oh, and that inexpensive upscaling DVD player? I wound up going down the street to 6th Avenue Electronics and scoring a Panasonic DVD-S58PP-K with HDMI output and CEC for $50. Can’t beat that with a stick.