With the new digital signal for TVs going into effect in 2009, requiring people to buy new digital boxes or TV

Question

is it a good idea to invest in SONY stock right now? They also have exclusive rights to the blu ray format which might be the standard movie format in the future. I an expecting high TV sales next year. Need some advice about SONY stock and if its a good investment.

Answer 1

The switch to digital will affect only a very small proportion of all television sets currently in use.  The only people who will have to buy a digital converter or a new TV are those people who are still using rabbit ears to get their signals.  When was the last time that you saw anyone actually using rabbit ears?  Besides, do you really think that those people still using the rabbit ears will upgrade to a 60" LCD?  No, they'll get a generic brand, and spend as little as possible.

Blu-Ray is already the HD disk winner, as the HD-DVD format has been officially abandoned.  This, of course, is already priced into the stock.  If you want to bet on SD DVDs dying out, it's up to you.

Really, I think that SNE is becoming more and more of a video game play, as that is the company's fastest-growing unit.

Answer 2

I wouldn't b/c the only people that are going to have to get these are the ones using antennas for television.  Most people already have satellites, and are already getting a digital signal.