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September 15, 2004

More Than Just Media Consolidation

While this story yesterday, Sony-Led Group Makes a Late Bid to Wrest MGM From Time Warner, could easily be interpreted as just one more step in a media consolidation death spiral, there’s the fact that Sony has more than one iron in the fire. And this article, Sony Set to Exert Influence on Discs, gives one indication of other rationales behind the action.

The purchase of Metro-Goldwyn-Mayer by a group led by Sony will not only give the company an enormous film library but also considerable power in its fight to set the format for the next generation of digital video discs.
The transition to the new discs, which are not expected to be widely available until next year at the earliest, could generate billions of dollars in royalties to the developers of the technology that runs them. Sony, as part of the Blu-ray Disc Association, a consortium of major electronics makers, is at the forefront of efforts to develop the new technological standard.
By buying MGM's studio and its library of movies, industry experts say, Sony is trying to tilt the long fight over the new DVD format in its direction.
(Continued at Furdlog)
Posted by yatta at 01:45 PM