Sony 2003 Annual Report Download - page 39
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SMEI supported the growth and development of legitimate alternatives to online piracy by making
its music available to many legitimate online music services in the U.S. SM EI is also actively w orking to
implement proprietary copy protection solutions that enable copyright owners to control the digital
distribution of content while at the same time meeting consumer expectations.
SMEI’s Network Related Business Model
SMEI signed agreements with a variety of digital distribution services, including MusicNet and
FullAudio, to provide consumers w ith digital music offerings ranging from monthly subscriptions for
streaming and downloading music to the sale of individual tracks. SM EI also authorized M uze, an
entertainment product information service, to stream SM EI recordings as promotional sound samples
to more than 14,000 retail locations and 250 online shopping sites.
Sony Ericsson M obile Communications AB (SEM C) and SMEI developed an alliance under which
many SEMC handsets shipped in the Americas will carry embedded Sony Music ringtones. In 2002,
SMEI acquired RunTones, a wireless entertainment company, and formed the Mobile Products Group,
responsible for the ongoing expansion of SM EI’s global wireless efforts. Sony M usic Mobile debuted
on the AT&T Wireless mModesm service in the U.S., enabling fans to access ringtones, graphics and
news about SMEI artists from wireless phones.
SMEI also launched custommixcd.com, a website where fans in the U.S. can create a customized
CD featuring twelve songs from an artist’s catalog (initially Bob Dylan and Train), including rarities and
previously unreleased material. Consumers determine the content and album art, and SMEI creates
the album and delivers it to the consumer.
CONTENT BUSINESS
Sony Corporation Annual Report 2003 37
Other SMEI Initiatives
Sony/ATV M usic Publishing acquired the legendary Acuff-Rose publishing catalog, consisting of
55,000 compositions including the songs of Hank Williams, Roy Orbison, The Everly Brothers and
Felice & Boudleux Bryant, among many others.
SMEI increased the value of the CD format by expanding the use of its ConnecteD and CD EXTRA
technologies, which enable consumers to access exclusive free content when the CD is placed in a
computer’s CD-ROM drive. Other added-value marketing strategies w ere implemented including
issuing limited edition versions of key titles w ith bonus DVD/CD discs.