Sony is starting a drone company—but it's probably not the kind you're thinking. Rather than launching a line of airborne camera platforms to compete with offerings from DJI and 3D Robotics, Sony is offering services that rely on airborne imaging to a wider range of industries.
The electronics giant announced today that it its Mobile Communications division is partnering with ZMP, a developer of robotics and automation technologies, to found Aerosense. Headquartered in Tokyo, the new company will develop and launch "enterprise solutions using autonomous unmanned aerial vehicles for image capture combined with cloud-based data processing," Sony said. According to The Wall Street Journal, Sony will sell services that rely on data from the drones, but will not sell the drones themselves. Aerosense will be roughly half-owned by Sony and ZMP, with Sony taking a 50.005% investment stake.
Here are five reasons why Sony is getting into this new business.
Because they have to.
Despite the company's huge success in the videogame market, where it has regained the console crown from competitor Microsoft, it faces big challenges in other business areas. Though the company's TV business may finally be returning to profitability, Sony has faced strong price competition in growing geographical markets like China, and savvy product-design rivals like Apple and Samsung have limited Sony-branded results in the mobile division. As they look for more ways to improve results, Sony executives can't afford to ignore the burgeoning drone market, especially if it might have relevant technology to bring to the table.
It's all about the sensor.
The drone business will provide another hero role for one unambiguously bright light in Sony's product portfolio—the tiny image sensors that are used in Apple's iPhone 6 and Samsung's Galaxy S6, not to mention the DJI Phantom 3. Sony's investment and expertise in image sensors already give it a foothold in the lucrative but challenging drone industry.
The strategy agrees with a new overall emphasis on services.
One strategy available to improve Sony's financial performance is to broaden its portfolio of services, which typically offer better margins than sales of manufactured goods. That's why Sony isn't building drones that can be sold to consumers as a commodity. Instead, the new business will offer enterprise services that combine the use of unmanned aerial vehicles with cloud-based data processing.
Aerosense will help Sony reach new markets.
If all goes according to plan, Aerosense will broaden Sony's reach to markets that it doesn't typically serve, offering a variety of what it described in a statement as "measuring, surveying, observing, and inspecting" services. Sony Mobile portrays the new venture as part of its push into the Internet of Things. But that move is not without peril—DJI no doubt has its own market agenda, and it is well capitalized to make life difficult for any newcoming competitors on the drone scene.
Sony has a partner to limit exposure.
By entering the market with a partner providing nearly half of the capital investment, Sony effectively limits its exposure should the business fail to live up to expectations. This kind of partnership may be a sign of the times for a company that once took pride (probably too much) in going it alone with proprietary technologies like, say, MiniDisc or the Memory Stick. As another example, Sony recently gave up on its own streaming music service and partnered with Spotify to deliver tunes to PlayStation owners, ceding some control and profitability in exchange for a better customer experience. Similarly, Sony should benefit as it enters unfamiliar industries where Aerosense partner ZMP already has business experience.
