Rich Fiscus
18 Jul 2007 8:09
Sony Pictures Home Entertainment is offering "revenue sharing" deals for Blu-ray rentals. According to SPHE president David Bishop, “Virtually all retailers can have Blu-ray on a revenue-sharing basis."
He adds "We think it’s important to the retailer, so they are perceived as being on the cutting EDGE of new technology.” He believes it will it enables retailers to stock Blu-ray discs earlier than they might otherwise.
This seems like a very bold move in light of the European Commision's investigation into Blu-ray's developers. The investigation seems to be centered around possible anti-competitive business practices in an attempt to prevail over the competing HD DVD format.
As recently as two years ago Sony BMG Music Entertainment, the music division of the entertainment giant, paid $10 million in a settlement with the State of New York for bribing radio station employees to promote their artists. While other companies, including major Sony rival Matsushita (Panasonic), stand to gain financially from Blu-ray's success, the stakes are arguably much higher because the success of either hi-def format ensures companies holding related patents a revenue stream that could be profitable for many years to come.
However, the similarities between Sony's marketing activities and the music industry's recent "payola" scandals seem similar enough on the surface to at least merit a second look.
Sources: Video Business, MSNBC