Sony's Cloud-Based Qriocity Holds an Edge Over iTunes, but Still Needs Work
Sony (SNE) has launched Qriocity, its oddly-named cloud-based music service, in the U.K. and Ireland, with plans for the U.S., Australia, New Zealand, and the rest of Western Europe next year. The cloud format automatically gives it a leg up over its biggest rival, Apple (APPL) iTunes, but it needs some work before it becomes a real threat.
Furthermore, the U.K. pay model -- £3.99 for basic access, £9.99 for playlists, favorites, and access to the Top 100 channels -- puts Qriocity at a disadvantage against Slacker Radio, Pandora, Last.fm, and a dozen other rivals offering the same stuff for free.
Here are a few things Sony needs to do in 2011 to succeed.
Mobile support
Qriocity currently is only available on Sony home systems like Bravia TVs and the PlayStation 3, but the real audience lies in the mobile universe with portable, Internet-connected music players and smartphones. Sony wants to best Apple, but by being cloud-based, Qriocity automatically competes with free-to-play services like Pandora and Last.fm. These guys are already on everything from Google (GOOG) Android to RIM (RIM) Blackberry devices.
Sony says it plans on going mobile at a later date, but the longer it waits, the less chance it has to succeed. It's hard to picture consumers paying for a non-portable service when there are free portable services already available on multiple devices.
Going beyond Sony devices
Sony would like Qriocity to drive hardware sales, so the services is focused on Sony's equipment, but it may have to open up to other devices to get a good following. Being a truly multiplatform service could drive adoption of both Qriocity and Sony products.
An excellent example would be the Amazon (AMZN) Kindle. Kindle books can be read on almost a dozen different formats, including on the iPad, yet the original Kindle device is still selling millions of units. The Kindle device sells because it provides the near-perfect format for reading Kindle books. Instead of keeping it away from rivals, Sony should be focusing on making the Qriocity experience the best within Sony devices.
Photo courtesy of Sony // CC 2.0
Related: