Sony Hopes Online Service Will Build make Loyalty

Sony’s new online service connecting the whole range of its gadgets to downloadable subject matter like movies and games should help build make loyalty, a top executive said Friday.

Executive Vice President Kazuo Hirai said the service, set for launch next year, highlights an advantage that Sony has by rivals like Samsung Electronics Co. and other manufacturers that don’t produce their own subject matter. Sony’s business empire spans gaming, electronics, movies and music.

“That’s the kind of combination that I think is not seen anywhere else,” Hirai said in an interview at Tokyo headquarters. “That I think is where our core competence lies, and that’s a differentiator for Sony.”

The online service will include games, movie downloads and other interactive entertainment, which will be accessible on Sony products, such as Bravia TVs, Cyber-shot digital cameras and Reader electronic books.

But Kazuharu Miura, analyst with Daiwa Securities SMBC in Tokyo, said it was unclear whether online services will boost gadget

sales.

“I understand what Sony is trying to do, and that’s the best way to showcase its strengths,” he said. “But whether that will really get humans to buy a Sony camera or a Vaio computer all depends on what Sony does with the online service.”

Hirai said Sony already offers streaming video, comic delivery and a news service, but could expand into any of the gamut of services available for personal computers, such as fitness and financial services.

Sony is targeting annual sales of 300 billion yen ($3.4 billion) from its networked services businesses and 350 million network-connected products by the fiscal year ending March 2013.

Sony’s service for PlayStation 3 video game machines, which began three years ago, has attracted 33 million users. The new service will be expanded to other Sony products.

In outlining a turnaround strategy Thursday, Chief Executive Howard Stringer flagged network services as a major area…

Original post by dhiram

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