Sony and AOL strike broadband deal

Sony and AOL are key players in the digital age

Sony and AOL Time Warner are to join forces on a deal to provide online entertainment via home networks, using games consoles, TVs and hi-fi stereos.

The project, announced at the giant Comdex fair in Las Vegas, is aimed at developing simpler ways of linking everyday electronic items to networks that are "always on".

We believe this collaboration will offer consumers an enhanced broadband experience

Kunitake Ando, Sony

Currently, people mainly use personal computers to link to networks such as the internet.

Sony and AOL Time Warner will create a platform to allow users to access the same content from their TV, mobile phone or games console, for example.

'Enhanced broadband'

"Consumers want the internet to play a greater role in their lives, and are looking forward to the day when broadband can deliver all of a family's home entertainment, information and communications needs over a wide variety of devices," said Steve Case, AOL Time Warner's chairman.

"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.

This clearly has put a new challenge to Microsoft

Richard Dohery, Analyst

Many in the industry believe the future of home entertainment lies in linking everyday gadgets to the internet or similar networks.

A modem to link Sony's Playstation 2 console to the internet should be available early in 2002.

Under the new plans users will also be able to get music, film, news and traditional forms of broadcasting from a range of next generation technologies.

Ironically, AOL and Sony are involved in separate and rival plans for the delivery of music services over the net.

AOL is part of the consortium behind MusicNet, while Sony is part of the group backing Pressplay.

New technologies

Earlier in the week, Microsoft's chairman Bill Gates outlined his vision of a "digital decade", and unveiled products, such as a tablet PC and the Xbox, which have internet-ready facilities.

Richard Dohery, an analyst with Envisioneering Group, said the Sony and AOL deal showed that Microsoft would not be the only company to start developing new technologies for the internet age.

"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 by Sony and AOL during the show and the agreements are not exclusive - any network software and services will be developed with an open architecture, allowing other firms to use the technology.

Under the joint programme, Sony and AOL will develop home gateway technologies that will allow the sharing of connections and content among multiple devices.

The two companies also plan to design an internet browser, specifically for consumer electronic devices. It also could be made available to other electronics manufacturers.