Can Stringer restore Sony to its former glory?
Published: 08 Mar 2005 18:05 GMT
The company has been promoting its Connect service internally to make it a distribution channel for not just music but for movies. Sony's acquisition of MGM will also play a key role in making more content available on emerging technologies such as Blu-ray Discs — Sony's bet for the replacement of DVDs.
Stringer can help overcome divisional politics partly because he's not inextricably tied to one arm of Sony, Goodman said.
"Hopefully, Howard Stringer can inject a more market-driven viewpoint, because his entire life has not been Sony," he said. "He's been there long enough to make his mark at Sony, but not so long he's identified with one particular division. I would hope he's acquired this viewpoint that Sony is part of bigger ecosystem."
Stringer has been vice-chairman of Sony and chief executive of the US electronics and entertainment businesses, which have contributed nearly 30 percent of revenues to the parent company.
As the head of the entertainment properties, he's placated artists and executives when it has helped his efforts, and gotten rid of those who may have gotten to big for their britches. Well-known Sony Music head Tommy Mottola was replaced with Andrew Lack, the former head of NBC, in early 2003.
Stringer will be busy. The former journalist turned media executive will be commuting from his home base in New York to the Tokyo corporate offices of Sony.
He'll have help from Ryoji Chubachi, who will take over for Ando. Chubachi, a Sony executive with an engineering background, will help make up for Stringer's lack of technical training. Chubachi will be in charge of Sony's electronics division.
The two will face significant challenges as they try to transform Sony amid failing fortunes. However, analysts say that Stringer's ability to build consensus among warring parties has been his strength.
Richard Doherty, an analyst with research firm Envisioneering Group, said it's not too late for Sony to become a significant force in digital music. Stringer, a "renaissance man" with experience in marketing, content and, more recently, technology, is the one to make it happen, he said.
"This is a guy who has a very high social IQ," Doherty said. "He's really very well-equipped to go out and better mesh the divisions of Sony that have been grating against each other."
"Once Sony gets their resources working in the same direction instead of competing against each other divisionally," Doherty continued, "they're going to be quite a force. I think within a year, they'll be mentioned in the same breath as Apple in digital music."
If they are, it will be because the diplomat in Stringer was able to mend the fences and bring Sony together.
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