Mixed Messages from Sony Again

Sony May Start Movie Download Service
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Associated Press 09.04.07, 7:34 AM ET
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TOKYO -
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Sony may soon compete directly with Apple and its popular iPods and iTunes, producing its own movie download service and products, company officials said Tuesday.
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"Music and video downloading has been available through networks, and we are looking into the area as a possible business," said Sony (nyse: SNE - news - people ) spokesman Shigenori Yoshida.
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The Japanese pioneer of personal music players fell behind Apple Inc. (nasdaq: AAPL - news - people )'s and its market-leading iPod. It also got a late start on flat-panel TVs, forcing Sony Corp. to cut jobs, shut plants and shed underperforming divisions under the guidance of Chief Executive Howard Stringer, who took over in 2005.
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Last week, Sony revealed a new Walkman video player that comes with Microsoft Corp. (nasdaq: MSFT - news - people )'s Windows Media Player 11 that is capable of managing digital libraries in the U.S. and Europe. The LCD-mounted players, which will also be compatible with MPEG-4 encoded video and AVC, are already available in Japan.
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Sony said in late August it would phase out operations at its struggling Connect digital music store in favor of a new breed of digital media players open to more formats.
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Sony also said it was shifting its emphasis to other network services, specifically one for users of its PlayStation game consoles.