Source: Bloomberg – By Mariko Yasu and Shunichi Ozasa

Kazuo Hirai, president and chief executive officer of Sony Corp. Sony Corp. will eliminate 10,000 jobs.
Sony Corp. will probably put songs by Michael Jackson and Whitney Houston online in Japan through its streaming music service. The trouble will be finding listeners who haven’t bought them from Apple Inc. (AAPL) in the past seven years.
Sony said it will introduce Music Unlimited, a cloud-based catalog of 15 million songs, in its home market by the end of December after rolling it out in 16 other countries first. The company hopes flat fees, unlimited listens and accessibility through mobile and gaming devices will help close the gap with iTunes, which started offering downloads in Japan in 2005.
Music Unlimted’s late arrival in the world’s second- biggest music market will serve as a test of new Chief Executive Officer Kazuo Hirai’s ability to bring Sony (6758)’s different units closer together. Hirai, who started in the music division, is trying to turn a profit after four years of losses and has said that integrating the company’s hardware and software offerings as “One Sony” is key to that.
“Sony still has its silo structure,” said Takashi Watanabe, an analyst at Goldman Sachs Group Inc. in Tokyo. “A lack of collaboration between sections probably caused a delay in offering the online entertainment service. Sony is trying to change that.”

Tomohiro Ohsumi/Bloomberg
Kazuo Hirai, president and chief executive officer of Sony Corp.
‘Vague’ Explanation
Sean Yoneda, a spokesman for Sony, declined to specify a date for Music Unlimited’s introduction in Japan. Sony’s music unit was the second-biggest contributor of operating income at the Tokyo-based company, trailing financial services, in the fiscal year that ended in March 2011, according to data compiled by Bloomberg.
Sony has yet to deliver on a 2009 plan to lure customers to its hardware devices by integrating online services for games, music, books and films, Watanabe said.
“Music content could be a key factor to revive Sony,” he said. “The time is over where an electronics company can excel just because it has a good device. You have to have a very good platform to capture your clients within your system.”
Still, Hirai, 51, didn’t list the company’s entertainment business among the top priorities when he announced his plan for reviving the company April 12.
“Sony’s explanation of how it plans to leverage its content business in its electronics business has been vague,” said Yoshiharu Izumi, an analyst at JPMorgan Chase & Co. in Tokyo.
Springsteen, Jackson
Sony introduced its online music service under the name Qriocity in the U.K. and Ireland in December 2010. Renamed in August 2011, it has boosted its catalog to 15 million songs released by Sony’s own music units — which include Jackson, Houston and Bruce Springsteen — and others including Universal Music Group, the world’s largest recorded music company, and Warner Music Group.
Music Unlimited lets users stream songs via Web-connected Bravia televisions, some Walkman models, PlayStation game players, personal computers and Android-based mobile phones. The service was expanded to the PlayStation Vita in March after being enabled on Sony Tablets and other Android-based tablets in October.
By contrast, iTunes users can buy music and store it on PCs or portable devices for listening without an Internet connection.
http://www.bloomberg.com/news/2012-04-25/sony-sends-15-million-songs-to-cloud-to-close-itunes-gap-tech.html