Sony Pictures considered BitTorrent Inc. as a possible acquisition so as to diversify its business, leaked info reveals. The popular file-sharing company made it onto along with Netflix and TiVo, with Sony admiring its efficiency at downloading online media.
In Digital World, BitTorrent is often viewed as a threat to Hollywood due to its pirate stigma, but the technology also offers favourable opportunities.
BitTorrent Inc, is the company behind the trendy uTorrent application, which helps artists to legally distribute their work to alot of folks each year.
Reports reveals that Sony Pictures’ interest in the technology was so specific that the movie studio listed it as a possible acquisition. During a draft presentation from early 2006 BitTorrent flanks some alternate buying opportunities like TiVo and Netflix.
The Sony presentation discusses choices to “refine” its business and saw BitTorrent as a possible candidate to diversify. Among alternative things, buying BitTorrent may raise margins and facilitate growth.
To accomplish this goal Sony may invest $2 to $4 billion bucks, definitely enough to buy BitTorrent. Even Netflix, that didn’t provide video streaming nevertheless was available for $1.2 billion valuation at the time.
According to the presentation the acquisition would certainly bridge a niche between Sony’s recreation content and also the company’s technology devices.
In the case of BitTorrent this might facilitate the expansion of set-top boxes and TVs with inbuilt technology to download and play video content. This is often a part BitTorrent was already engaged on with different partners.
In short Sony sums up a bit of BitTorrent’s strengths in addition to recent developments. It mentions the agreement with the MPAA to put infringing content off its site, among others.
Sony was also aware of BitTorrent’s plans to launch its own entertainment store. This eventually launched a year later however ne'er got any real traction.
Despite the interest Sony never bought BitTorrent. The company went for Grouper instead and eventually bought a 25 percent stake in Starz Media in addition.
Today nearly a decade has passed, and in apprehension it’s not essentially a nasty call for Sony to have passed on BitTorrent. The company features a huge userbase however it struggles to seek-out good revenues sources.
Netflix, on the other hand, is certainly a uncomprehensible chance as the company currently dominates online media distribution worldwide.
