CES 2014 interview: Sony Electronics President Mike Fasulo
CES 2014 interview: Sony Electronics President Mike Fasulo
2014-01-07
hey guys it's down at the virgin here at
CES 2014 our studio and I'm drying by a
very special guest this is Sony
Electronics new president and CEO Mike
fasulo thanks for joining us oh great to
be here you've been on a drop for six
days seven days I think today's day
seven that would make it to you start on
january for any word first and this is
your first interview on the job so thank
you very much thank you very much
tryouts are put on so but you've been
it's only for a long time just about 30
years februari will be february2014 will
be 30 years Wow what roles are you held
it Sonny not all I'm sure there's that
many many you know some folks say I
can't keep a job but I've had a role
starting and actually studied finance so
started in finance and went operations
to cells did Sony start up for our
direct business or direct online and
store business in America did it turn
around for a media company CMO wow
you've been all over the place you want
to see him out of selling I was the
theme of Sony Electronics you were
telling me that the year that's Tony had
Taylor Swift at CS that was that was you
it was correct you just call her up and
say hey we're doing a 3d TV thing he can
stop by yeah will you see oresko you
don't like what kind of response well
that's great but so now you're you're in
charge of sony electronics which is sort
of the north american kind of gadget
division right i mean this is where you
guys make the stuff not necessarily the
TV studio the movies together this is
where you make them we're electronics
yeah the electronic system electrons and
Sonia is on a tear here at CES actually
cause rot I just gave a c-note his
keynote and I mean he now it's a live TV
service interface live TV service with
video on demand he announced a new
Playstation online streaming initiatives
at stream games right anything and then
you had a bunch of announcements
yesterday this is it did you feel coming
in it this was gonna be a big year a big
year of ambition for sony or absolutely
that's just a sort of a normal hey
what's all the stuff no no this is you
know this has been in the plan I mean
Kaz is really put together such a
within the company he spoke about condo
and in Japanese culture they call
continents you know passionate emotion
not simply technology but how does
technology translate to emotion and
passion and how do you get that
instilled in all of your employees that
ultimately out into marketing to
consumers and he's just done a
phenomenal job in such a short period of
time and last year we actually were you
know making leading our way in with 4k
and other great advancements and this
year we're just competences back the
product is back and we're looking
forward just having a great urine that
really getting consumers really excited
once I mean there's been a number of
kind of product areas that the company
has been focused on we've got cameras
sitting here and imaging has been a big
one 4k for you yesterday was enormous
point of focus and then obviously those
gaming stuff and then what I was
surprised if I was today that he
announced its kind of a live this live
television service which has been sort
of the missing piece here at CS right
you always have you guys always having
new TVs i always look more beautiful
than ever and there's always this well
i'm still got kind of a cable box gee
what's what's happening with kind of
this the sly TV stuff well i think light
live TV is you know big announcement
today and i won't take that away from
cuz he's speaking with you a little bit
later and i'll let him get into more
detail but it really goes to you know
giving customers choice availability
content we own content companies but you
know we want to provide content as
broadly as possible and as easily as
possible this is another way to do that
and the live space as well as the gaming
space yeah so I mean if anybody could do
that that should be Sony and now we are
right and so let's talk about that
contents of so you announce new 4k TVs I
will say it's interesting that everybody
else here has their curving their TVs
this way you've remained flat which you
know I I struggle to see the value of
the curved displays I think they're very
interesting technologically the school
that they can build them I haven't old
why but you're making wedges why are you
guys doing ledges so so the wedge is
this tuple the design is just fabulous
oh yeah if you look at the design it's
whether it's hung on the wall or honest
and it's just the fabulous design but it
also gives you more immersive sound so
in the wedge as it wedges to the bottom
we actually have tweeters in there and
woofers in there that give you a much
clearer quality of sound and makes it
more immersive in addition for the best
picture quality not 4k so so we're
actually good this year will be bringing
out nine new 4k television models yeah
and the flagship was our 85-inch not
model that I showed that last evening I
also showed the wedge 79 inch but where
we're trying to attract all the get
every passion from the consumer
addressed and how they want to enjoy
content you know make the quality I as
important and audio as it is in movie
watching yeah we're video video so so
but that's I mean that's the open
question right you've got beautiful 4k
TVs the industry's figure ants or what
form factor is going to work best for
them I think that's always very
interesting but the open question I
think has been distribution how are you
going to get content from the cameras
you guys make the cameras how are unique
content from the cameras and studios
we're making it already to the consumer
and that's been basically ? but you guys
announced some partnerships and you're
feeling kind of confident about that I
talked quite a bit about that last
evening and it's very pleasing to see
that all your cameras or sony camera
thank you very much we did that just for
you we swap them out everybody sixty
percent of the industry has it just for
us but thank you thank you anyway oh
yeah so if you look at it from a a you
know the Holy Grail is his distribution
reduction in distribution and with 4k it
goes well beyond the panel and from a
consumer perspective I think they need
to be aware of it's more than the panel
so when you're looking at televisions
it's the technology that goes into the
television beyond the panel that can
make that really wow factor that Cavs
talked about today in viewing I mean 4k
you can get two inches to the screen and
no pixelization right and with with
Sony's triluminos technology with our
x-reality pro technology or motion flow
technology which consumers don't really
care about the technology but what it
does is it gives you life like colors I
mean you can see that this face is clear
as they yeah and in for I don't want
anybody looking about rationing that's
what I was going with mine thank you for
picking that pack of that one up for
upscaling as well so we're with our 4k
televisions anything any Content 4k
high-definition looks better right but I
so i think that there's but your partner
gesture that you announced were Netflix
YouTube 500 pics ESPN those are all
internet delivery services right is that
how it's going I see that as being a
huge disruptor to the industry right
it's there's classic television which
you know Fox still 720p right I they're
not going to make the jump in broadcast
to 4k tomorrow you're not going to get a
football game in 4k tomorrow well you're
going to deliver it over the air but
football game is interesting because I
also spoke spoke a little bit about our
55 cameras yeah right which-- our 4k
broadcast cameras that are shooting
content in 4k but it's not all being
delivered back for k so with pork and
getting four times the resolution you're
getting more information so instant
replays for sports you can actually see
more content you see more data where
they're doing that right there doing the
big sale in this right so there's
multiple applications very different
than then possibly 3d right there's
multiple applications from the
production distribution side as well
whether it's TV blacklist very popular
TV show is being shot at 55 right now
cameras we talked about hulu is using
our cameras we brought on Reed Hastings
last evening yeah he's great reads
everywhere yeah he working but what did
he say about the Sony relationship he
talked about our televisions and these
were his words that our televisions had
the fastest response rate when he looked
at delivery of
for that content of the television right
so you know he's a creator in a
distributor so that was that was a big
nails but he you know when I say he's
everywhere I mean he he's Netflix it's
sort of the key right there the the
major content service that everybody has
that will deliver for Kate first and
that to me that's internet delivery so I
look at a Sony 4k TV and the first thing
I think is well now the netflix is 4k
this will be useful to me is that is
that how you think of it too is in
obviously you guys run your own service
but netflix has such broad appeal and
everybody already has it that they
they're buying the tvs that can turn it
right on is that how you're thinking
about distribution of content or there
are other pieces yes to both okay so
what we're thinking about is you know
Cal's again talked about condo and
emotion and and wow we're thinking about
the passions consumers passions passions
or music passions or watching video pash
passions or I talked about action cam an
extreme sports right so where there's a
consumer passion how do we deliver that
in a more immersive exciting experience
so if you think about it from from TV
viewing whether that's watching TV shows
or whether that's streaming through
netflix content from your netflix
account or streaming through sony
entertainment network or we talk about
gaming today at aquino whatever the
passion is for the consumer how do we
make it not only accessible and easily
delivered into their home or on the go
but also of the highest quality and i
don't want to under estimate our desire
to provide highest quality because that
really gives you the best experience and
so you know you announced like the
quality thing to me i made a joke during
a live blog i'm going to admit it to you
you were announcing high res audio and i
made a comparison sacd which was a sony
super audio CD that was announced and
all the artists loved that the music
industry love it and i went nowhere with
consumer and now you've got high res
audio which you're doing up sampling of
compressed audio you've got kind of
reference speakers and systems is that
different mean tell me why that's
different than other high end up because
I would consumers are buying crappy
headphones because I like the way they
look right yeah we're basing them on
phones and maybe don't have the best
audio converters in
and you're saying well you got to step
up to this next generation of audio the
hall replacement headphone business is
great because the headphones but now
with what's different here is there's a
number of things different one is its
industry led right so there are other
leading audio companies jumping on board
and to it cuts across different life
styles different life segments so it's
premium quality audio for an audio
enthusiast but it's also better quality
audio from point of view of mp3 or
access to tracks right so we're hitting
all the generations audio is a passion
yeah across all generations and we're
providing products to them that are
meaningful and relevant to how they live
their life and so it's not a box in a
room right it's meant for whatever
application we have a lifestyle that
consumer user so we're all excited about
high res audio the artists I just said a
real excited last night I talked about
say something with you know Christina
Aguilera yeah and this is something you
guys can do because you happen to have
sony music on the back end I mean it is
this like you know cos always talks
about one sony right you've got all
these divisions is this something where
you've worked with them or did you just
present it to the industry how does that
kind of work when we work really closely
internal even though we're separate
separate entities internally you would
never know that we collaborate work
really well together but we're also
understanding that you know customers
want choice yeah and and they want
assortment so we don't limit it only to
Sony entities but we can start a lot of
good initiatives and really move things
from an industry point of view and lead
because of that because of those
components that we have
whether it's imaging gaming music
television movies content right devices
so do you think consumers are going to
you know I think that the disruptive
thing that happened in audio was
convenient right in the Walkman was a
kind of the first iconic piece of
convenient audio and then equality went
up and then obviously mp3 came in itunes
came and convenience exploded right and
sony has been coming back and back and I
you guys make phones that are obviously
did you really play back what's the next
big disruptor and audio do you think
it's high res or is it something else I
mean it does that have the same power or
do you think consumers are going to stay
with convenience or quality well I think
I don't think you can separate them I
think it's got to be both right so you
know we're putting all of our core
technologies that have made the best
quality televisions cameras audio
devices now into our smartphones and
this is the actual smartphone that Kony
massa presented last night Cody Moscow
Suzuki the z1s which will be available
through t-mobile in the United States
and this has all of our core
technologies in it so it's got the
highest quality apps that you want to
use without its imaging music listening
but it makes it convenient right so you
convenient on-the-go and when you're in
your home or your in your favorite room
we've got products that were compatible
right then you can sit and put on a pair
of headphones and enjoy high res audio
you know in your space that you desire
so what's interesting about that phone
is it sitting next to one of your
cameras yes and this you know phones of
particularly your phones have excellent
cameras of them right and lots and lots
of something the industry's figured out
that excellent cameras and cellphones or
differentiator it sells a lot of
products how do you mean that that's
your new alpha this is the API pills
you've rebranded it from next with
what's going on there so you know we're
building we'd be a tremendous success
with alpha we had tremendous success
with the NEX 5 and the 3 and 6 and so on
but we're trying to come up with a
branding that consumers can could really
you know
get on board with and they've really got
on board with alpha threat more so than
next thanks more so but it it's time for
us to bring it together as a single
brand because it speaks to the
capability of the product well it used
to be that where your DSLR israeli a
mirrorless that's right and now they're
just kind of yeah well and when we you
know got into the DSLR business we got
into it with the Alpha Brandon and now
we've integrated the imaging that one we
call alpha or a series and this this is
this is sweet camera this is the a 5000
I show this last evening and this is
about a six hundred dollar retail mm-hmm
so it's an affordable camera but it's
it's just jammed with technology and
features it's you know it could be
professionals it's the lightest the
world's lightest apse cow so it can be a
professionals dream for yeah I know a
lot of journalists use next three is
there go to yeah also for the casual
users that want to step up their game so
it's affordable and my question is is
that the future of sort of Sony imaging
right these kind of step up bigger
lenses bigger sensors because this is
killing the phones are killing your
point you marking arthas so yes bigger
sensors better quality is where we stand
but don't forget I didn't bring it I
should have brought it don't forget we
had the QX lens style camera which for a
camera company is disruptive right right
we make digital the DSC cameras on point
and shoot cameras we make yeah handycam
4k we make alpha we moving from maniax
today series so you know there are times
when disruptive matters and it's
something you should embrace rather than
you know hide from but so do you see
that as a companion to sort of the phone
like when you're when you're looking at
somebody who has a great phone camera
how do you sell them feel elated that's
great we know i'll be home i'm a bit on
a camera nerd
there used to be that you're at a flip
phone and you needed a camera so you
went and bought a sunny pointe shoe for
249 and 349 right now you've got a
pretty great camera on your phone they
provide a sony phone right how do you
how do you tell the consumer that they
need this as well because you know this
is really convenience and access when
you were talking about earlier about
accessibility and convenience so you're
going to get really great photos off of
the Sony smartphones but when you're
really trying to get into you know
different viewing angles and different
effects and really taking photos and
around the passion of photography this
this is the beginning of a camera you
want to get into it right i mean and
then you really go to a whole other
level when you can end your the camera
nerdy buying a camera yeah this happens
to sugar like chicken suits were to do
what I can we appreciate it I'm a big
supporter of Sony if you've got a lot of
money we have so many products for you
to buy this year that you didn't
actually I want to talk about that a
little bit there's you guys announced a
lot of products yesterday and then cause
at a keynote today and add some more
product what I'm missing to be very and
we talked about this a little bit 41 on
the air what I'm missing is so nice to
have spectacle used to have Taylor Swift
and sparkles and you were in charge of
that and then you guys have made a
decision to kind of really focus and
kind of just announced products what
does that prep kind of period like for
you as you decide what you're going to
do at CS so this year we're really
looking at focus on the consumer I mean
we've always been focused on the
consumer but the wow factor that Kaz is
talking about is what we're delivering
in technology that makes a motion with
an summer so we have a music company we
have a television company pictures
companies so we can bring artists and
the sorek as is keynote yeah we brought
Vince Vince out and and that's that's
great but unless the consumer can
actually get that feeling that through
what we're delivering to them then it
just becomes las vegas on a show yeah
right so what really when we're focused
on we do have a lot of new products but
they're very focused you know focused
around 4k for quality and premium and an
immersive focused around high res for
getting those sounds that music the way
the artist intended it to be focused
around imaging to really give consumers
that ability to feel you know get the
emotion out of their favorite photos and
really step up their game from this
point and shoot so it's really built
around very distinct passions and then
going deep within those passions content
is king I said it last evening right and
we'll continue to bring artists sell
yeah bring films out but the delivery of
them to the consumer ease of access and
interoperability that is really what
we're focused on and I hope hopefully
you saw that through last night's
presentation yeah I mean next year you
gotta bring Taylor shows that yeah
that's a promise I want to hear I just
looked funny standing that's not so one
last question it's this is the rapid
fire and we totally gotta wrap up here
you're busy man and it's just sort of
kind of a random one it's throwaway
cannot answer if you want to but what
when do you think kind of mainstream
adoption of 4k will come what's your
timeline cuz this is kind of the first
wave of it's all going to happen yeah we
both thought this year well it's not to
share although you know i was around 29
years we were around for a couple of
paradigm shifts yeah i was around for HD
about adoption as well and we're seeing
4k adoption much faster than HD and this
is not inside a 50 sure inside a three
and one do you think prices with the
mainstream price points as as mass
adoption occurs there'll be efficiencies
of scale you're going to see this year
there are more affordable products in
the market a broader line of products in
the market but I again caution the
consumer understand what you're buying
do your research go out get an
experienced a demonstration at retail
before you make the final purchase
because there's 4k panels
that were true 4k panels but they're not
going to deliver the same experience of
a brand like Sony that puts all the
engines and technology behind it they
all they all just just the panel oh I
wouldn't get any time to talk about the
4k handycam well I just got to take this
talk about it later so I was hoping you
wouldn't notice it still here wait you
want a 42 k before that's your line this
well I 2000 me too yeah I 10 i did and
you're looking at but it wouldn't sound
good for K 499 14k it's not bad this is
for I think you said beginning kind of
filmmakers students hobbyists yeah I
mean you can use this to you know to
film festival you can use it for
recitals weddings vacations you know
it's it's it's a phenomenal camera shoot
in 4k can shoot in HD surprisingly small
its class yeah and it's got a 1-inch
CMOS sensor in it which which again is
the larger chip and I believe I can't
think of another camcorder that size
with that size chip in it so it's full
of great technology at an affordable
price yeah you're gonna leave it here
Burke you all see how is fan sauce for
my kitchen great to have you thank you
so much for a diversionary of us we look
forward to many more yes enjoy class you
too
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