And Sony Makes Three

We may not be in a recession but we are facing tough times, primarily at the gas pump. Families are having to cut back on nonessentials, like entertainment. AT&T, Verizon and now Sony have indications that the consumer has tightened the belt. –

TOKYO: Sony posted a bigger-than-expected 47 percent drop in quarterly profit Tuesday, hurt by losses at its mobile phone joint venture with Ericsson, while Matsushita Electric Industrial reported 86 percent profit growth as a result of rising sales of flat-screen televisions.

Sony raised its forecast for full-year operating profit to reflect a change in its accounting method; Matsushita, which owns the Panasonic brand, reaffirmed its annual outlook, which surpasses market expectations.

By the way Toshiba has been hit as well.

All you broadband providers better listen up, even you wireless guys. If you want to survive this downturn you HAVE to provide a no frills, transport only tier. If you continue to lump yourselves as a ‘entertainment medium’ you are going to lose customers by the fistful. The consumer sits here and looks at all that is before them — cable/FIOS, 500 channel wasteland, pay-per-view, digital phone, cellular phone. Bills running probably up into the $300 a month range. For what?

Many Americans, being forced out of homes by foreclosure are cutting the land line phone for good. Those that are on a solid footing for the housing still have to make choices. So if its a choice between the cell and landline or VoIP they are choosing cellular. They sit there and ask why am I paying $25/mo for premium channels when I don’t have the time to watch them? I am wasting money so out it goes. Besides they could do better with NetFlix or Amazon IPTV. Pay per View the same thing.

So what’s left? Transport, maybe digital phone if one of the breadwinners works out of the house and basic cellular service. That is Basic Fat Pipe. One last angle to consider AT&T, Comcast, Verizon. It is better to assist the consumer with that BFP now. That way you retain a relationship with the customer. When the economy comes back, and it will, that customer will be amenable to adding additional services. If they just cut you off, then you have to compete all over again for their dollars when they get the itch to buy. They just may decide to NOT pick you.

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