I don't know anything more than you guys do so take what I'm typing with a grain of salt. I did a little investigative work on the web I found:
Facts as reported by the RIAA and Sony- The RIAA Mid-Year 04 sales of SACD's are down 54.2% (based on units shipped in the same period last year).
- The same RIAA report shows DVD-V and DVD-A sales are up 101.7% and 109.8% respectively.
- Sony Corporate Quaterly Report (3 months ending 6/30/04) to the Stockholders show Sony Audio Division with a drop in sales of 11.8% even after adjusting for the falling US dollar.
- RIAA Year End Sales showed Vinyl
Singles outshipped SACD's by nearly a 3:1 margin (vinyl 3.8m units/sacd 1.3m units).
(NOTE, I did
not include the shipments of the full length LP or EP in the vinyl shipment figures)
- RIAA Mid Year 04 shows a similar trend compared to vinyl (vinyl 1.9m units/sacd .689m units).
(NOTE, I did
not include the shipments of the full length LP or EP in the vinyl shipment figures)
Subjective CommentaryTake those facts, couple them with Sony's Corporate restructuring program (called Transformation 60, (TR-60)) which has just begun Phase 2 back in April of 04, and you can draw some interesting parallels to the 'Demise of SACD's' stories.
You need to download ALL of the recent Sony Corporate presentations to the shareholders and then download the TR-60 Structural Reforms. Read between the lines of Corporateze lingo and you can get a feel for where Sony is headed in the future and what their primary market focus' will be.
When it comes to large corporations and in particular
shareholders, any arm of a business that is
not performing (no matter how well liked by it's audience segmant), that same segment will eventually get the axe unless something dramatic happens (like huge,
sustainable boosts in sales now making it viable).
Take the emotion out of it. Forget that most SACD releases sound good. Forget that other companies have jumped on the format. It appears to be a looser for Sony. Now matter what we think, the shareholders will expect Sony to make the
proper business decision and cut the offering.
Now, thats not to say that they won't sell all rights to SACD technology, patents, etc to the highest bidder. There are loads of other companies that are into the format neck deep. I think the format will probably survive but the landscape will no longer have Sony in the forefront.
I might be right, I might be wrong, only time will tell.
I'm only looking at it from a purely business standpoint. When a 'new better' technology that gets outsold by some (reportedly) 'dead and archaic' format like vinyl, it may be time to do something else.
PS, I'm a vinylphile so no flames about the 'archaic' comment please
