Sony Hooks Up With Grouper
Another day, and another online video deal! This time it involves an aging media-entertainment giant, Sony, and a tiny California start-up, Grouper.
Sony is ponying up $65 million for Grouper, once a leader in the P2P sharing space, but now a straggler lagging behind some of the newer rivals. The deal, while good news for Grouper team, indicates a larger malady that has gripped Sony: confusion.
The deal is between Sony Pictures, but the management teams are talking about devices, cameras and in house distribution. Sony Pictures does legal content, Grouper – well it has a bit of “anything goes†culture. Given Sony’s past track record when it comes to “synergies†this buy is mysterious at best.
Sony has bigger problems: it is an electronics giant which hasn’t had a hit in years; it doesn’t have a single must have device on the market; the future of its savior in recent times, the PlayStation, is still questionable, and its core CE business is getting commoditized. Without great devices, Sony is just another fading brand, living off its glory days. Music and Movie businesses are going nowhere fast. What it needs is complete revitalization, a focus and a plan – maybe Grouper is start of that, but I am not holding my breath.
(Read the press release, that says it all.)
More Online Video Buyouts Coming? Big Media is panicking and buying Couple more, and the music stops Eem, where can I buy online videos?
Written by Om Malik on August 23rd, 2006 with
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