Sony DisConnect

Filed in archive Companies , Major Labels on June 26, 2007

Sony's digital entertainment woes continue as its music service Sony Connect is being closed. Some personnel have been laid with more expected to follow over the next few months.

Sony Connect's decline reflects its insular anti-NIH (Not Invented Here) attitude. The company initially insisted on proprietary technology and formats that were not industry-compatible, such as the ATRAC DRM music file format. While that strategy may work if you're the market leader, it doesn't when you're an also ran trying to compete against the Apple juggernaut.

Sony has already closed Sony Music Studio locations in both New York and Los Angeles.