Sony cashing in on online music apps production | Bangkok Post: tech

ELECTRONICS

Sony Music is shifting its focus to produce its own online music applications for all internet-enabled devices in a bid to create a new revenue stream.

Sony Music’s Mr Paul says the company’s music applications can be accessed by any internetcapable device. The new revenue stream will account for at least half the total next year.

The move is an attempt to cash in on increasing demand for internet-enabled devices, said Paul Manatthaworn, the digital director at Sony Music Entertainment Operating (Thailand).

"Having our own music applications will eliminate our reliance on mobile operators' call centre services. Our service margin will also increase, thanks to lower revenue-sharing with operators and application owners including Apple's AppStore and Google's Android," said Mr Paul.

Sony Music plans to introduce a new on-demand streaming music service under the Music Unlimited campaign by the middle of next year.

Mr Paul said the company's applications will allow customers to access music content easily via any wireless device.

Sony Music and its consumer electronic marketing arm Sony Thai recently integrated its music content with Sony's electronic devices by introducing the i-hUMM TV service enabling Sony Bravia TVs to stream music videos onscreen. Smart TVs should also help it promote its music download service, he said.

Bundling its content with Sony devices will combine the group's hardware and content strengths. The company plans to further customise its content for Sony tablets and PlayStations, said Mr Paul.

Sony Music is preparing to introduce a music application for Apple's iOS next month.

"We expect our application download revenue to account for at least half of total revenue next year, fuelled by the lower cost of Android smartphones and the government's One Tablet per Child scheme."

Previously smartphone users could download music via mobile operators' call centres. Sony Music shared half the application download charge with operators before, but with its own applications Sony only has to share 30%.

Sony Music expects to post fiscal revenue of 120 million baht this fiscal year ending March 31.