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Sony: Case of Right vs Left Hand

Masem writes "Wired has an interesting article that explains the problem facing several of the megacorporations that have both content and technology divisions, as specifically in the case of Sony. The tech divisons want to offer the consumer all the possible options, while the media divisions are very concerned on DRM. While the two groups are trying to meet somewhere in the middle, they are still at odds about it, and also finding that that middle is becoming rapidly populated by other competitors (including Microsoft) in just how to empower consumers without sacrificing their copyrighted materials. Both divisions are trying to adopt to just changes in the landscape and hoping to find something that will work."

19 of 216 comments (clear)

  1. How about... by Anonvmous+Coward · · Score: 5, Insightful

    ...trusting your customers?

    If something's fairly priced, nobody's going to take the time to copy off something to somebody who doesn't wanna pay. "Go buy your own."

    1. Re:How about... by Anonvmous+Coward · · Score: 4, Insightful

      "... the proper price for something is free, even when paying for something gives you moral happiness and gets you a better product..."

      Sorry, not true. If price was the motivator behind music trading, then we'd also have more games/apps/other warez available on places like Kazaa. Surprisingly, it's not that well populated with anything but music.

      Games cost $50. Think about it. I think the main reason games aren't so popular there is that game demos are widely available and are free to download. That's enough to make a purchasing decision right there. You don't get that type of service with music.

    2. Re:How about... by salesgeek · · Score: 4, Insightful
      If something's fairly priced, nobody's going to take the time to copy

      Amen to that. 99.9% of the problem with the movie and the music business is that their stuff just isn't worth what they charge. They've overproduced (there's more music and movies at the average wal-mart than I could listen to or watch in a lifetime), overhyped and finally overpriced their product. Result? People would rather go out of their way to copy than to buy JUST TO SPITE THEM!

      How about ink jet cartridges? Ever wonder why a store like Staples has to put them behind the counter? Because their customers will take them because they aren't worth paying for (I personally refill, the penalty for refilling is an occasional ink-stain)!

      I'm sick of the fscking razor blade business model. I'm tired of 80% marketing expense product cost. Now I will go wander back out in the desert from whence I came...

      $G
      --
      -- $G
    3. Re:How about... by rgmoore · · Score: 4, Insightful

      Wrong. As the software industry shows, it's quite possible for a company to make money selling originals even when there's a whole industry devoted to making illicit copies. So long as a reasonable percentage of people prefer to buy legitimate versions, the creator can continue to do fine. There just has to be some incentive for people to pay for legitimate versions of whatever- software, music, or movies- rather than illegitimate copies. In the software business that comes in the form of tech support and legal threats against businesses that use illegal copies. In the movie and music business it's likely to be in the form of guaranteed quality of the copy. People who use file sharing networks constantly complain about the large percentage of poor quality files. Legitimate providers could very easily make money by charging a decent amount for the promise that the technical quality of the recording will be high.

      --

      There's no point in questioning authority if you aren't going to listen to the answers.

  2. It would be a mistake to focus too closely on this by PhysicsGenius · · Score: 5, Insightful

    While it's interesting that these companies have internal conflict over which way they want to swing, I'd like to remind everyone that we really don't care what they eventually decide. Corporations do not run the country (yet). We need to decide what's right first and then companies have to adapt to that. Crossing our fingers and hoping that "they make the right decision" is worse than useless, as it puts the decision into the hands of the capitalists.

  3. Re:Split up by JudgeFurious · · Score: 5, Insightful

    I know if I were Sony I would certainly consider it. A slice of a 20 billion dollar industry in conflict with your own 40+ billion dollar electronics business would make a pretty clear decision for me.

    --
    Appended to the end of comments you post. 120 chars.
  4. But what about... by Khakionion · · Score: 4, Interesting

    ...releasing quality products? If the new music rack is populated by the likes of Eminem, Missy Elliot, Dixie Chicks, etcetera, I think I'll try the good ol 'net for my music infusion.

    --
    OMG! Wau!
  5. I Wonder What Mr. Stringer Meant by Snork+Asaurus · · Score: 5, Interesting
    Last night, while doing something else, I flipped on the box for background noise - the channel was CNBC. I heard "muffle, entertainment mumble, corporate, CEO, the street, dividends, blah, blah" - the usual business garble.

    The I heard something along the lines of "What are your plans in light of the undeniable success after Napster of peer to peer file trading software such as WinMX?" The person being queried was Howard Stringer, CEO of Sony Corp. of America.

    His reply was mostly the usual babble about legal means, being proactive in providing what customers want through services such as Pressplay, etc., but the he caught my attention when he qualified the foregoing with the statement: "even though we can chase people with viruses" (and that is a verbatim quote - I wrote it down).

    I asked myself:

    1) Does he just not have a clue what he's talking about?

    2) Have recent legislative and minor legal successes given the recording industry a greater sense of omnipotence?

    3) Is he aware of some gifts that US government about to bestow on his industry

    4) Did he tip his hand?

    5) Is he on crack?

    My guess is mostly #1, a little #2 and some #3.

    --
    Sigs are bad for your health.
  6. One casualty of this is battle is ... by jdclucidly · · Score: 4, Interesting

    One casualty of this is battle is the Sony NetMD line of MiniDisc recorders. In fact, the entire MiniDisc media has been crippled by Sony just to satisfy their DRM needs.

    The NetMD line of players/recorders allows you to record at 44kHz quality on the road. This is great for radio jounalists because you can buy a nice battery powered mic and record interviews wherever you go. The packing for the recorders fails to mention that while you can transfer 'songs' to and from your computer over the digital link, it explictly denies you the ability to import audio that you recorded from a microphone -- presumably to prevent digital bootlegging. So, to protect against the %1 of people that might use the NetMD illegally, the other 99% of us lose out.

    There are allot of people pissed about this and there's a petition to Sony to get this featured turned on via a software update here. Over 2,600 people have already signed it. Go sign it too!

    As for the MiniDisc media, if Sony would stop charging ludicrous licensing fees for players, we'd finally have a nice, caddy protected, alternative to CD-Rs.

  7. you're not seeing the shades of grey by PCBman! · · Score: 5, Insightful

    Actually he's not delusional, I guess you missed the slashdotted article about the RIAA report that only saw 10% of people NOT buying CD's AND downloading. I would assume that 90% of the people surveyed were either not buying CDs or downloading, or they were downloading AND buying CDs.

    I don't want to JUST preview music, I want to buy it, albeit, one track at a time, if they sold me an mp3 in 320kbps for $1, I'd buy it--even before napster, they were lucky to get one CD out of me per year. It's all about selling a product with a value people will pay for.

    I'm not saying people don't like getting stuff for free, they do, but you're even more of a pessimist than me if you believe people will steal from you at EVERY opportunity. People are generally willing to pay a fair price for a fair product. Of course, if you try to fleece people out of their money, they'll strike back, and they don't need to do so in a legal manner. Remember, if you're too busy watching for the knife in your back, you'll just find it in your chest one day.

    --
    So, when's lunch?
  8. Comming to theonion soon ... by ReidMaynard · · Score: 4, Funny

    Sony sues Sony; Sony couter-sues (AP) ....

    --
    -- www.globaltics.net

    Political discussion for a new world

  9. temporary problems will disolve by visionsofmcskill · · Score: 5, Insightful
    While this issue is certainly a bone of contention in the midst of mega-conglomerations, it is only a temprary issue that will be reolved quickly. The main point on the agenda is profitability.

    If the Sony corporate heads can't find a resolution to deal with DRM within the company in such a manner as to remain profitable, it will remove the un-profitable segment.

    While the music industry (RIAA, MPAA, etc..) is attempting to bring the cross to bear against IP infringments onto tech comapnies, evryone knows that DRM is ultimatly impossible. Not in that you cant make it hard for copiers to copy and distribute them, but in that if someone can hear/see what you have to show them, they can ultimatly record it, or re-create it.

    Given that fact, most mega-conglomerates with .02 cents of knowledge will tell their music arm to re-adjust it's buisness model and become profitable, mainly because the fault does not lie with the technological arm.

    It's highly unlikely any major company is going to tell it's profitable tech arm "stop making computers consumers like and buy" because they dont support their less profitable media arm.

    something has got to go, the inherent un-balence between arming consumers with weapons that will hurt your own sales of other items has placed the mega-corps into a situation in which whey WILL have to choose what to drop.

    DRM is not gonna cut it, file-sharering software will just incorporate DRM crackers or other such means to turn Copy Protected media files into standard media files (that seem to be non-commercialy owned).

    Consumers will rebel against measures that are any more intrusive than behind the scenes protection, so you can forget about selling completely crippled systems..

    As such, you can choose between forcing your tech arm to stop making computers that ultimatly can hurt sales in your media arm. Or you can tell your media arm to shape up or ship out.

    Lastly, when you look at the nature of music and video, in that the average home user is now able to make their own easily distributed movies and music with relative high quality, you can see that the RIAA and MPAA are under attack from more than just piraters, but by home users making music themselves. The average joe (like me) can record his band for under a grand. If im not a "aucoustic" band, or musician, then my expenses vs. quality improve ten fold.

    producing high quality music (without Microphones and other analog/acoustic gear) is CHEAP, and even live sounding music isnt too much more

    As such i think we may be going full circle back into an era that resembles the times when local acts were the biggest shabangs, And THIS is what is ultimatly the killer of the music industry.

    the film industry may not be too far behind. Although the average Joe is NOT gonna leatn maya or other film and 3d software at the drop of a hat, nor have those fields improved Enough to make their use quick and easy, they are on the road to becoming quick and easy. I dont see holo-deck style easy of creation in our near futures... but it isnt THAT far off (im talking about the ability to make chracters and render them interactivly with chracteristics almost on the fly, not about creating a full 3d environment around you)

    once people can start making their own stories &or imaginations take shape with ease... the film industry will be having some serious problems.

    ultimatly the buisness aspect to selling OTHER peoples content creations will suffer... and it should... the only reason these industries are so enormous and powerfull is due to the in-accesibility of the equipment they use to the average joe. I've been in several LOW-budget films and the expense for high-quality is greatly reduced from what it was due to tech. and this is only going to continue. As smaller firms (even individuals) become increasingly capable of creating competing quality products, the big guns will find themselves being shredded by hosts of little pirhanna's.

    It's gonna take a while before these changes sweep through, and the old fuckers will fight it to the end, but ultimatly tech HAS been bringing increasing power to the end user. Go pick up ProTools Free from www.protools.com , or iMovie from apple to see the beginings.

    now if you were a mega-corp... what would you choose?

    --Enter the sig--

    --
    --Idiots, Every single one of YOU, A flaming mass of conglomerated morons, hey wait a second, isnt that how RAID works?
  10. It boils down to... by loteck · · Score: 4, Insightful

    Once again, as seems to be the case with so many of these kind of problems that involve the digital world, i believe the real problem is summed up on the last line of his (excellent) article:

    If only it didn't depend on a bunch of music men who've yet to wean themselves from shiny plastic discs.

    I think the real underlying issue that confronts us is simply a lack of understanding of the technology that is becoming available. These men have grown up in a "shiny disk" world, and judging by their actions i cannot help but think that they are fundamentally (and by no fault of their own) incapable of understanding the kind of societal and logical changes that are taking place as technology allows us to manage content more freely.

    In short, i would predict that these problems wont really find resolution until the next generation that has grown up with this technology takes over the big businesses and is able and willing to do what they known needs to be done.

    I just hope we can survive until then.

  11. Anyone else? by rzbx · · Score: 4, Interesting

    Has anyone else thought about the fact that maybe we would be better off without copyright? Seriously, one moment please, don't mod me down so fast. Sure, we've lived with copyright laws for a while now, but what would it be like without them? Have you ever REALLY thought about it? I've done a lot of thinking and a lot of reading (I do mean a lot). I know most people don't even question it, they just question one thing, the work put into it. Yet ask yourselves this, do the construction workers, road builders, etc. get payed royalties everytime you drive down the road or use your house? How come we treat information like this?

    --
    Question everything.
  12. We must heed principle; let them heed profit by SnakeStu · · Score: 4, Insightful
    It's important to realize that the balance between the benefits to the public and the benefits to the copyright owner will not be achieved by allowing the copyright owner to decide what balance is best for their bottom line. We cannot sit idly by and hope that Sony et al decide on a balance that will be acceptable to us; instead, we must focus on convincing the government to abandon their imbalanced support of such corporations and start doing what is right to achieve a balance for all concerned. (I didn't say this would be easy, so don't bother with the "too late" comments.)

    It's sad to see that some replies in this topic have shown obvious confusion regarding the role of corporations versus the role of government. In the US, the Constitution was not written by corporations, nor should amendments (codified or de facto) be done so. That corporations have more sway than Joe Public is a given at this time, but times change and so do governments, for good or ill. The more apathetic the public, the more "oh, it's too late, they're already in power anyway" responses, the more things will decay in favor of the corporations. The more motivated the public, the more politicians will put the input of corporations in a subordinate (or at least equal) position compared to the input of their voters. Corporate money can only buy an election when the public is apathetic and detached from the political process, and thus open to glitzy ads. If there is a strong sentiment in the public to reduce or eliminate the effect of those ads, then the role of corporate money is also reduced or eliminated. In the end, the vote counts, not the advertising.

  13. IBM All Over Again by Royster · · Score: 4, Insightful

    IBM used to be Microsoft.

    They had an effective monopoly in computer equpiment. Sure there were competitors, but they ate the crumbs that IBM couldn't be bothered to bend over to reach. They had been the subject of a long standing antitrust investigation by the Justice Department which was dropped by the Reagan Administration.

    Along comes the microcomputer which IBM names the PC. But, IBM wants to protect it's mainframe business, so they try to deliberately hobble the nacent PC so that it won't take away desktops holding a 3270 terminal. They don't build PCs with Intel's new 80386 chip.

    The result, competitors fill the markets which IBM's internal politics won't let them fill. Compaq sells 386s hand over fist and IBM loses the market they made.

    Now Sony makes the same mistake.

    Those who forget the past are doomed to repeat it -- Satayana

    --
    I have discovered a truly marvelous sig, unfortunately the sig limit is too small to contain i
  14. Not possible by thorrbjorn · · Score: 5, Insightful

    To save its electronics business and make its dream of digital services a reality, Sony needs a system that doesn't punish consumers yet somehow satisfies the entertainment industry.

    This system is not possible. The only system that will satisfy the entertainment industry is one which punishes consumers. The industry doesn't just want to protect it's copyrights (a goal with which I agree), but restrict consumer rights, making legal practices technologically impossible.

    For example, the practice of burning a CD you legally own, so you can take that copy in your car with you leaving the original safely at home. To the consumer this is perfectly normal. To the courts, its perfectly legal. To the industry, its a perfect wasted, a lost opportunity for revenue. They want to make you buy two copies of the CD.

    For the entertainment industry, DRM isn't about protecting copyrights, its about opening up new revenue streams. The problem facing the technology industry is the fundamental fact that consumers don't want to pay more for less.

  15. It's hard to compete against "free as in beer" by TFloore · · Score: 4, Interesting

    And when you are comparing the price of anything to a nearly-equivalent version of the product that is offered for free, almost any amount of money, no matter how small, will not be considered "fair" by most people.

    Most people don't copy music to spite the record companies. (Oh, a sizable percentage of /. readers might, but not most normal kazaa users.) Most people copy music, and let other people copy it, because it doesn't cost them anything, except a little bit of time. And most people don't properly value their time.

    This is one of the problems that unlimited internet access causes. (Don't get me wrong, I love unlimited internet access and would be very upset if I were charged per-megabyte fees.) I don't mind giving a friend a lift across town in my car. It doesn't cost me much at all, maybe $0.25 in gas or so, and 10 minutes of my time. I will think seriously about driving a friend from one coast of the U.S. to the other, because that is a non-trivial expense, just in terms of gas and vehicle maintenance. Time expense also becomes unreasonable.

    There should be a similar thought process with sharing music. Giving a friend a copy of a cd you bought, so they can listen to it and see if they want to get more stuff by that group, is a reasonable thing to do. Giving 2000 copies of it to people all over the world isn't.

    But with unlimited internet access... Giving 2000 copies away to total strangers costs you the same as giving one copy to a good friend. The only "cost" to you is your time to set up the client and music files on your system.

    It's hard to compete with free.

    Competing with quality or convenience? Quality won't work. It will be too easy for P2P networks to add the equivalent of karma. Add a crc value to the information transmitted in a file search. After a verified good transfer, compare the crc value. That lets you verify the other client isn't lying about contents. Then you can listen to the music, and "moderate" on quality of the rip. Not if you like the song, but if the rip is good quality. Enough "nothing but skips and cracks" votes and that client drops to the bottom of the search results. You just solved the quality problem on p2p networks. Convenience can be handled also.

    It's hard to compete with free.

    We love this when talking about Microsoft, and any other propreitary vendor competing with an open source product. But the recording industry (and the artists that want to distribute their own stuff without dealing with the Major 5 Labels) has this problem also.

    I admire the problem... and I wish I could offer a good solution. I really think it will just end up being a version of Apple's solution. An advertising campaign "Don't steal music" and almost no real limitations enforced. Because nothing else will let the industry keep the honest customers, which I like to think are the majority.

    --
    This is my sig. There are many like it but this one is... Oops. Frank, I've got your sig again! Where's mine?
    1. Re:It's hard to compete against "free as in beer" by salesgeek · · Score: 4, Insightful
      It's hard to compete with free.

      That's what happens when you make so much music, then basically give it away to consumers over FM radio (or on TV) for 30 years... The entire broadcast business is based on this model:

      Consumer: Mooches for free. Changes channels to avoid commercials.
      Customer (advertiser): Pays broadcaster for commercials that consumers change channels to avoid.
      Broadcaster: Pays for playing movies or music.
      Labels & Studios: Churn out more crap that is simmilar to the crap that sold the most commercials for the broadcasters.

      Exception: Theaters and live performances - customer pays outrageous price for tickets...

      The problem with the internet is that it's the ultimate commercial skip.
      --
      -- $G