Sony: Blu-ray wins the format war
The war over high-definition DVD formats is over, and Sony’s Blu-ray is the winner, said Dawn Chmielewski in the Los Angeles Times. Warner Bros. last week announced it would release movies for the home video market exclusively in the Blu-ray format, dealing “a de facto knockout punch to the rival HD DVD format backed by Toshiba Corp.” With only two of Hollywood’s six major studios supporting Toshiba’s format, said industry analyst Richard Greenfield, “expect HD DVD to die a quick death.”
Still, Sony’s focus on Blu-ray has hurt other parts of its business, said Sarah McBride in The Wall Street Journal. Sony, for instance, insisted on installing Blu-ray technology in its PlayStation 3 game consoles. But technical problems led to repeated delays in PlayStation 3’s release, giving Microsoft’s rival Xbox console a year’s head start. Besides, Blu-ray’s victory could be short-lived. The format could eventually be rendered obsolete by new technologies that will enable consumers to download high-definition movies over the Internet.
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Online media: CNet is in play
Online media company CNet Networks is headed for a shake-up, said Andrew Ross Sorkin in The New York Times. Investment funds led by $8 billion Jana Partners have acquired 21 percent of CNet’s outstanding shares, with the aim of replacing the company’s board of directors. CNet, one of the first Web sites to focus on technology coverage, “has been particularly hard hit because of increased competition in its core market from technology-focused blogs.”
Retailing: Talbots cuts back
Clothing retailer Talbots is retrenching to focus on its core customer base of middle-aged women, said Mark Jewell in the Associated Press. Talbots said this week it would close its 78 men’s and children’s apparel stores and lay off about 800 employees. Like other clothing retailers, Talbots has struggled as the economy has slowed. Although it tried to persuade the women who frequent its stores “to pick up clothing for others as well as themselves, the concept hasn’t been a good fit.”
Donuts: Krispy Kreme loses another CEO
For the second time in less than two years, donut chain Krispy Kreme has replaced its CEO, said Gerald Magpily in Thedailydeal.com. Daryl Brewster, 50, will be replaced by Chairman James Morgan, 60. Brewster “had the unenviable task of trying to turn around Krispy Kreme,” which has been hurt by more healthful eating trends and allegations of mismanagement. “By most accounts, he hasn’t done much to right the ship,” as the company’s market share and stock price fell throughout 2007.
Cable news: A slow start for Fox Business Network
Fox Business Network hasn’t found an audience, said Jacques Steinberg and Brian Stelter in The New York Times. Nielsen Media Research estimates that only 6,300 people are watching Fox Business on weekdays, compared with 283,000 watching CNBC, the business channel’s chief competitor. Although most new cable outlets start slowly, “few new channels have been able to draw on the vast promotional resources that are at the disposal of Fox Business,” a unit of Rupert Murdoch’s News Corp.
