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are designing this convergence strategy together. That was not something that happened overnight. It's taken a long, long time. The success of iPod certainly stimulated that transition more recently.
In what way?
We were concerned that creating the technology in Tokyo, where content isn't, would make it tough for the software engineer to develop a successful solution. It was successful with Steve (Jobs, chief executive of Apple) because he understood content as well. For us, it was done separately.
With the success of iPod, there has been a real realization by software engineers in Tokyo that they need to understand content companies better. Similarly, we will bring our success in content and our growing strength in software engineering here to work together.
Sony Connect is a great example. In 12 months, we've really become a more integrated company, with American and Japanese executives working in harmony, side by side, and that's very promising for a video revolution because, while we may be behind the eight ball on delivery of music, on video, we have plenty of time to improve and grow faster.
So music has opened the door to video and your entire movie library?
And television library and games and so forth. The interesting thing is that technology companies and pure content companies sometimes have contradictory impulses. For us, the security of the content is still very, very important, and I think by working together now, we can protect content, because without content, most devices are junk. They may be very attractive, but a television, if you can't watch anything on it, is worthless.
I've had a hard time convincing people of that, and I've had a hard time convincing the consumer electronics group to not discard the idea of security or copyright protection as irrelevant, because if you're in China right now, it's very hard to build a content business. You can't do it.
But we're working together in real harmony now, and we understand each other's problems, and we have a better chance of solving some of these issues.
Is it fair to say you're in real harmony at this point? The Connect service is pretty new.
Real harmony may be an exaggeration, but harmony of purpose, anyway. There's nobody saying, "We know what we're doing; you don't," anymore.
Now, together, we can fashion this out. We're working very closely with PlayStation, whereas we didn't two or three years ago, and we're very happy with that relationship. All in all, I think the company is realizing that there can only be advantages if we work together. If we don't work together, it's not going to fly.
We've seen what happens when you don't work together--music suffered, electronics suffered. So with music as a template, you have something that is set. I mean, does Connect have to be solely a music service?
Well, it's more; we're working with PlayStation. They've accepted Connect service. We're working on video players--so we're working across the company.
Within the company, how is Connect viewed? Do you view it as a distribution channel directly to the consumer?
It's an end-to-end bridge with devices and content. It manages the relationship between both in order to present something to the
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