Sony Mulling Own Video Download Service

Now that Sony has pulled the plug on its Connect music service, company officials have admitted they're considering launching their own video download service.

Electronics and media giant Sony may have just pulled the plug on its Connect music service (which served up music in Sony’s proprietary ATRAC format), but now company officials in Japan have acknowledged Sony is considering it’s own video download service, going head-to-head with Microsoft’s Xbox Live service (which offers TV shows and movies to Xbox 360 gamers) and, of course, Apple’s iTunes store. "Music and video downloading has been available through networks, and we are looking into the area as a possible business," said Sony spokesman Shigenori Yoshida, according to the Associated Press.

The Wall Street Journal is also weighing in, claiming that Sony plans to launch its own video download service off of its PlayStation 3 and PSP gaming platforms, along with its Internet-enabled line of Bravia flat-panel televisions.

The speculation follows Sony’s introduction of a video-capable Walkman portable media player in the U.S. market last week, competing directly with Apple’s video-capable iPods. Sony has also just unveiled new capabilities for its PS3 gaming console which will enable the device to tune into digital television and function as a digital video recorder; for now, those capabilities are only slated to be released in Europe.

A video download service could be a bold move for Sony, as most industry watchers still feel the video download market is up for grabs and positioned for strong growth. Although Apple’s iTunes video store is off to a strong start, the recent defection of NBC Universal may put a hamper on sales, and while Micrsoft’s Xbox Live video service has garnered praise, its audience is still limited. If Sony could step into the video downloading arena with an accessible, best-of-class service, it could have a shot at dominating the market…which some industry watchers say could top $7 billion in the United States alone by 2010.