Sony Enters Online Music Market with Sony Connect Download Service

Sony Connect, the Japanese electronics and music company's newest online music service, launched in the US yesterday, signaling the company's entry into the competitive online music business. The service is designed to work exclusively with Sony devices, aiming to revive sales of its MiniDisc and Walkman players, which have been declining due to the popularity of iPods and other MP3 players. Sony Connect will offer over 300,000 tracks, but its proprietary ATRAC 3 format limits its compatibility with other music players and services.

Key Takeaways:

• Sony Connect is an online music service that launched in the US, with plans to expand to Europe by June.
• The service is designed to work exclusively with Sony devices, such as the MiniDisc and Walkman players.
• Sony Connect will offer over 300,000 tracks, but only in Sony's proprietary ATRAC 3 format.
• The ATRAC 3 format is not compatible with MP3, AAC, or Windows Media Audio, limiting the service's cross-platform appeal.
• Sales of Sony's MiniDisc and Walkman players have been declining due to the popularity of iPods and other MP3 players.
• Sony Music, one of the big five record companies, is in negotiations to merge with Bertelsmann, which could make Sony the largest label in the world.

Statistics:

• Over 70 million tracks have been sold through Apple's iTunes Music Store.
• Sony Connect will offer more than 300,000 tracks.
• The iPod can store as many as 40,000 songs.
• Sales of Sony's MiniDisc and Walkman players have declined due to the popularity of iPods and other MP3 players.

Sources:

• "Sony moved deeper into the lucrative but increasingly competitive online music business yesterday, launching its Sony Connect download service in the US and foreshadowing expansion to Europe by June."
• (Source: Computer Weekly)
• "[Unlike Apple's trend-setting iTunes Music Store, which has sold more than 70 million tracks]..."
• (Source: Computer Weekly)