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In a world with too many movie download services, Sony (SNE) launches another

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Nearly every consumer electronics device from the Amazon (NASDAQ: AMZN) Unbox to the Microsoft (NASDAQ: MSFT) Xbox has a service for downloading and playing movies. Now, late to the market, Sony (NYSE: SNE) wants to offer a similar service of its own.

According to The Wall Street Journal, "Sony began offering a video-downloading service Tuesday for its PlayStation 3 videogame console, part of its aim to broaden its audience."

When one or two companies in an industry offer a new feature, it could be a competitive advantage. But the feature of downloading movies over the internet is available on so many devices that the advantage, even for those early to the market, may be taken away.

Movie download services have become a commodity and not a differentiating feature. Critics could argue that Sony should have added the product to the PS3 a year ago. But it does not matter. At this point it is just one feature among others that everyone in the industry offers. What everyone has, no one is likely to be able to use as critical leverage to get more customers.

Douglas A. McIntyre is an editor at 247wallst.com.

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Last updated: November 11, 2009: 04:55 AM

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