Sony may start movie download service - Yahoo! News
I think it is quite comical to watch the big content companies flail about trying to wrest power from Apple in music and video.
What seems intuitively obvious to the casual observer is this: all file formats should be based on open standards. If there was a firm standard in place, all these companies could do their own download stores and compete on quality of product and quality of interface.
Without an open standard that can be relied on, only a few distributors will rule the market as they do in the brick and morter market. In this situation, the individual provider stores are doomed to fail, because they do not have all the content and they (usually) have horrible interfaces.
If we had firm standards in place for data files, we could count on software companies to compete on the value their software added. As it stands, the large companies rely heavily on lock-in to hold their customers hostage. The file format is one form of lock-in and the interface is another.
The same goes for media files. Companies like Microsoft and Sony have repeatedly tried to take control of the media file standards with WMV and ATRAC. They do not do this to make a more convenient world for their customers; they do it to lock their customers into their "store", where they effectively would no longer compete on quality or features.
Some good counter examples are JPEG, MP3, and TEXT. These are fairly firm standards that are available and allow numerous products to compete on the quality of their features, functionality, and interfaces. These are healthy markets.
Look at DOC, XLS, WMV, and ATRAC (before it was EOL'ed). These are not healthy markets, even after all the effort that has been invested.
Which makes more sense in the long run?
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