Skip to main content

Sony Enables Over-the-Top Video to TVs

Informitv reports that Sony is the latest in a line of consumer electronics companies that are attempting to connect the television screen to the internet, and in the process they are upsetting the status quo of the current broadcast network television business model.

Sony has introduced a new device that attaches to the back of its new television sets, providing access to streaming video delivered over a broadband connection. Known as over-the-top video services, because they bypass a broadband provider's pay-TV distribution services and go directly to the consumer.

Sony Electronics president and chief operating officer Stan Glasgow unveiled the 'Sony Video Link' internet video system at the Consumer Electronics Show in Las Vegas.

"The Internet is reshaping the entertainment and technology landscape," he said "and it can’t come as any surprise that Sony is committed to creating an environment of convergence where products and content work together seamlessly, while providing consumers with new types of entertainment experiences."

"While other companies struggle with standard definition," he said, "Sony has developed a scalable internet HDTV solution with some notable partners providing content."

Those partners include AOL, Yahoo! and Grouper, now part of Sony Pictures Entertainment, as well as Sony Pictures and Sony BMG. The majority of new Sony televisions -- starting with several Bravia flat-panel LCD TVs -- will accept an attachable module that can stream broadband high-definition and other internet video content at the press of a remote control button.

The optional module will be available in the summer of 2007. It is quite a large device that is similar to a pay-TV set-top box. It will support RSS feeds and allow users to create custom channels, such as for local weather or traffic conditions.

The Sony Video Link will feature the Sony XMB Xross Media Bar interface which received an Emmy award at the CES trade show. It is similar to the icon based menus on the PlayStation Portable and the PlayStation 3.

Clearly, this is more troubling news for any broadband service provider that's in the process of building a conventional pay-TV delivery business model, via IPTV, when the trend is to unravel that model by utilizing unconventional delivery. While the implications are yet to be fully determined, however, I'm confident that financial analysts will be watching this trend very closely as they assess the forward-looking viability of IPTV infrastructure investment.

Popular posts from this blog

Why Europe's AI Investment Surge is Strategic

When enterprises begin treating AI budget as the line item they protect last when cutting elsewhere, the market has crossed a threshold that analysts rarely name explicitly. That is precisely where Europe now stands. A new forecast from IDC projects European AI spending will reach nearly $470 billion by 2030, expanding at a 35 percent CAGR over the next five years. European enterprises are allocating capital toward AI because the operational returns on cost efficiency, risk mitigation, and resilience are now demonstrable enough to justify sustained budget commitment. The strategic implication is significant: AI has moved from the innovation portfolio into core operational infrastructure. European AI Market Development Generative AI solutions, already embedded across enterprise deployments, are expected to account for more than 55 percent of the total market by the end of the forecast period.  Software is both the largest technology segment, at 54.9 percent of total spending in 2026...