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 p.20 #2 · Sony Smooth Reflection App | |
Parariss wrote:
There are really two possible business strategies with apps. One, is for Sony to use apps as a way to increase revenue/margin through sales of apps created in-house. The other is to harness independent, third-party developers to increase the value of the product on Sony's behalf Sony, and do so not at Sony's own expense. Both strategies have problems, but the worst case is to be stuck in the middle of both, and that's where Sony is now.
The first strategy, charging customers for in-house apps that provide small added features, quickly feels adverse to the customer, especially when (1) Sony is selling a premium product at a premium price, and (2) other manufacturers offer these same features as standard and for free, and increasingly do so over time.
On the other hand, the second strategy, leveraging third-party developers, brings a different set of problems. One, is that (unlike cell phones) cameras are a niche product at this point in history, so it's hard to attract developers to such a small installed base/revenue opportunity. Another, is that allowing third-parties to interact with your firmware puts your entire operating system at risk -- and Sony suffers the brand damage and support costs even if it's not their fault. At the very least, the firmware has to be purpose-built to accommodate third-party code before you can even think about letting someone else inside, and the manufacturer needs developer support infrastructure in place to ensure permitted apps don't cause damage -- that infrastructure carries a high fixed cost for such low volumes (cameras vs phones). And thirdly, there's the security risk. A cybersecurity risk to the consumer, sure, but to Sony, too. The OpenMemories app is a great example. It evaporated the soft wall that Sony installed in the camera firmware to protect it's higher product margins abroad (the PAL/NTSC warning irritant). When you let someone enhance your product you risk allowing them to add features you absolutely do not want inside.
I think Sony got themselves half-pregnant with their foray into apps. Even the server side component, PlayMemories, is half-baked. The in-house business model isn't profitable, angers customers, and hurts the brand. The outsource business model isn't profitable and adds risks that will inevitably hurt the company, and do so unexpectedly. I think the absence of the app store in the a9 is no accident. It signals a recognition of these problems by Sony and a shift in their business strategy going forward. Time will tell which path they've chosen....Show more →
Very insightful analysis. I think herein lays the problem with companies who has an entrenched interest in a sector it is either dominating or heavily relied on. Disruptive technology often arises due to the none nonsensical walls erected to protect markets/existing business model.
While SONY don't have much to worry about from likes of Canon and Nikon. They should be very worried how APPLE and Google is changing how photography is done. Computational photography are here to stay and if SONY doesn't lead the charge, APPLE and Google will. While the smaller sensor in phones are yet able to compete directly with higher end large sensors, it is only a matter of time before a company put a larger sensor into a software environment already adopted/matured by the phone/app developers.
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