Technology company Sonic Solutions is hard at work building an infrastructure to move movies and television shows to a server-based “cloud”, and is looking at big growth this summer.
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Investors are not unaware of the company and its ambitions, as Sonic shares have risen more than 400% in the last year.
Sonic’s goal is to become one of the top players in the content delivery business by developing technology that enables studios and retailers to sell copies of movies and TV shows directly to consumers via web-connected devices.
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Sonic CEO Dave Habiger says the following about his company’s ambitions:
“I think we will be one of the major players in the delivery of content. (Sonic) will be number one or two in delivery,”
Beginning this summer, Sonic’s retail partner Best Buy will be promoting digital content delivery via DVD players and televisions equipped with Sonic’s technology. There are already over one million LG and Samsung devices that have been manufactured with Sonic’s technology.
While his company has plans to go up against (and defeat) some heavy hitters in the industry such as Apple and Netflix, Habiger recognizes that “cloud” delivery is still in its infancy:
“We’re in the early innings of this game, this is the second inning of a baseball game . . . The game will be over in a year-and-a-half, maybe two.”
Is Habiger’s prediction accurate, Insiders? How interested are you in having your media stored remotely and delivered on demand?
(via Reuters)
I think he means the leaders in this space will be known in 18 months. If he thinks its 18 months to bye bye DVD and bluray then I think he’s far too optmisitic about his business model. VOD from the net isn’t all that different from cable VOD. I’m guessing slower going for sonic. Still a neat company though.
The key to “content delivery” via the IP stack is predicated solely on the adoption of the Internet II initiative.
Without the bandwidth/throughput and protocols, *any* of these players are going to find consumers disappointed with all the aspects of the “Cloudy” delivery system.
I think that this is a terrific idea. As we become more and more mobile, being able to access our media from any device is a really exciting prospect. However, I agree- the 18 months to a year Habiger estimates until mainstream adoption is definitely wildly optimistic. I read an article not too long ago that said something like, although iTunes and other types of digital media have been around for years, the % of media consumers who use digital delivery is still in the single digits.
So I definitely think that hard goods will be king for a number of years yet….
Although I would be interested to hear what everyone things.
I wish them luck. Netflix already has a pretty good setup and the pipeline isn’t the problem. Content is the problem. For multi-play movies netflix does fine if they have it. For single-play movies Amazon and the Itunes store are tough competitors. I wish ethem luck. Even a great platform is worthless without loyal customers and content.