On the two year anniversary of the PS3, PlayStation director of hardware marketing John Koller has announced that PSN (PlayStation Network, other wise, known as your friends list and the PlayStation Store) has hit the milestone of 14 million users. What makes this more astonishing is that 4.2 million more users then just one month ago. John Joller went on to say:
PlayStation Network has truly hit its stride with unique downloadable games and a video delivery service featuring movies, TV shows, and original programming that you can watch in HD with your PS3, or bring with you on your PSP. And with 14 million active accounts and 273 million pieces of content downloaded, we know that you’re thirsting for this digital entertainment.
What makes this piece of news even more exciting for PlayStation fans, but more so for Sony should be that this puts them neck in neck with Microsoft’s X-Box Live thats had a year head start on the 360 and user wise, was available during the entire lifespan of the Xbox/PS2 era where Sony offered no such service.
Part of this winning strategy I believe is due to the value of PSN and that value is that its free. Unlike X-Box Live where there is a $60 yearly charge that keeps alot of users offline and away from content that they might wish to pay for, aka profits. We have also seen Sony now offer the PSN store on the PSP systems where with a Wi-Fi connection or through their PC (No Mac support yet, wth Sony), they can download and purchase content. Although currently no buddy list and messengering system is available for the PSP, it is a good start.
I am personally a huge believe in PSN because I see it being part of a further strategy that can really set Sony apart then the X-Box 360 and Wii, but also help Sony catchup to services like X-Box Live and iTunes where Sony’s Connect service failed.
First, I believe that its great that Sony offers the PSN store through the web for the PSP (although in a new update, you can access it from Sony’s PSP Manager program but you have to purchase that). But to really capture the side entertainment functionality of the PSP, Sony needs to offer that program for free. Instead of people download other free programs, create a system and then sell content through it. Like iTunes. The iPod is only as great as its content provider and Apple has done an amazing job with iTunes. Sony needs this. Once there is an official program, it will be much easier for the nearly 40 Million PSP users to get content for. This of course, then ties back into PSN. Sony needs to make PSN its key weapon. Instead of having multiple services that are different for the PSP to the PS3 to the walkman and Bravia, have one source. Now, under a unified flag, you are able to give content to over 100 Million devices out there. This first and foremost creates an echo-system for Sony. Meaning, I can feel confident about purchasing content and knowing that I can take it between my devices and more so, ill feel safe and thus purchase more. Second, it gives Sony a great negotiating chip. Instead of saying we provide content to 14 Million users, when they go to Fox and WB and the music groups and game developers and so forth, they can now state that they command a 100 Million + users base. Then, providers will be put in a situation where they will want to give content to Sony and Sony can not only negotiate better pricing for themselves, but for their users as well that in long term, turns out better for Sony. Plus, we must not forget, Sony is a large Movie Studio and even larger Music Studio with Sony Pictures, Tri-Star, and Sony/BMG. They on their own can start this concept and have companies sign on as they see the potential.
This thought process really came to be when I was logged onto PSN and downloaded some great 1080p free content from some Sony like Sara Bareilles - Between The Lines that was of a concert she had and Incubus “Look Alive”. This then got me to think of the current state of the music industry. First, these concerts looked fantastic and yes they are being offered on Blu-ray but somebody might not go out and purchase a BD disc, just for that artist so why not offer first, a music tab under PSN. I mean hell Sony, your giving your content to iTunes and DRM free on Amazon, so why not your own network. But second, I believe that yes, a lot of people pirate music, so why not capitalize on the industry in other ways. Offer free videos and paid videos of these artists. Behind the scenes content and concert footage. Not only does this help promote your artists but users might be much more open to the idea of downloading a concert for their enjoyment for lets say $10 then to go purchase an entire DVD or Blu-ray. Plus, while their PSP or PS3 is on, they can just scroll to the content and start it up. Again, this is what iTunes was able to achieve, ease of use and I think Sony can offer the same and up them one if they embrace it properly.
The argument of this would be that this could eat away into their Blu-ray sales and I don’t agree with that. For me, downloading a movie is just not an option the picture and sound quality and behind the scenes content and now, more interactive content from Blu-ray Live is only offered to me on Blu-ray. But music and music video content is different and is much more casual. And also, I truly do believe that more of this content needs to be free. Why? Because it creates value where there needs to be real value and thats for the artists. Get people excited for their up coming tours, offer free Themes and Music Videos and free or lower priced concert videos. This will get fans excited and next time there is a tour near by, they will easily cash out that $60+ where the real money is.
Again, once this echo-system is in place, we can also see a much more unified marketing front for Sony or whoever else that wants their content on PSN. For example, why was there no new or exclusive content for Sony own 007: Quantum of Solace? No front banner, theme, Alicia Keys (Sony Artist) video, behind the scenes video, press releases. Nothing. Again, if you are commanding a 14 Million + and with my vision, 100+ marketing, why would you ignore it?
Once a true structure is set for PSN, Sony has the opportunity to achieve something very unique and yet competitive with the likes of X-Box Live and iTunes and Sony dosen’t even need to look to outside providers to start this off. Sony needs to only look inward to see all the media it holds. The video store is a good start, but there is much work to be done Sony.
