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MillimeterSony and AOL Time Warner to develop a home networking environment to deliver online entertainment
Nov 14, 2001 12:00 PM
At Comdex 2001 in Las Vegas, Sony and AOL Time Warner agreed to collaborate on the development of networking devices for homes with high-speed Internet access, create new forms of digital entertainment as well as consumer electronics devices.
AOL and Sony also plan to build an Internet browser with AOL’s Netscape division, specifically for consumer electronic devices. It also could be made available to other electronics manufacturers.
The collaboration aims at developing easier ways of linking televisions, stereos, game consoles and other devices to always-on broadband networks that are now primarily used by personal computers. The technology will employ copyright management - an important element for media companies.
The companies will also explore the possibility of AOL providing access to Sony's networked devices in the United States.
"We believe this collaboration will offer consumers an enhanced broadband experience and create new business opportunities for the whole industry," said Kunitake Ando, Sony's president and chief operating officer.
Analysts said the corporate alliance was likely driven in part by the two companies' separate battles with Microsoft. Software company Microsoft is taking aim at AOL's Internet access business while also entering Sony's corner of the market with the introduction of its Xbox videogame machine this week.
"This is probably the worst thing that Microsoft could imagine happening this week," said Rick Doherty, an analyst with Envisioneering Group, a market-research company in Seaford, N.Y.
"This clearly has put a new challenge to Microsoft and any broadband relationship that Sony would have with Microsoft," he said.
Few product details or timelines were disclosed during an announcement at the Comdex trade show, but the agreements are not exclusive, and any network software and services will be developed with an open architecture.
Continue the discussion on “Crosstalk” the Millimeter Forum.