Sony to Spend Hundreds of $Millions to Boost HDTV

According to Reuters, Sony's U.S. unit plans to push marketing spending to record levels this year to sustain sales of high-definition electronics such as televisions, camcorders and DVD players.

Cheaper TVs, more broadcast channels, and the launch of next-generation Blu-ray DVD players that will allow consumers to make their own high-definition viewing choices are all expected to key up demand for HD components.

Sony Electronics, one of the world's biggest consumer electronics makers, had an estimated $100 million advertising account annually, though it nearly doubled that spending toward the end of 2005 to push flat panel televisions, digital music players and other devices, according to trade reports.

Sony plans to spend hundreds of millions of dollars more on marketing in the upcoming year, which represents a significant bump compared to last year. 75 percent of the marketing investment will focus on high-definition TVs, digital camcorders, still camera, Blu-ray DVD players and related products.

Until 2000, Sony was the world's top TV maker, led by its flagship Wega and Trinitron brands. But a shift in consumer demand to flat TVs stood for a severe blow.

Sony must now compete with rival makers of high definition TVs and devices, such as LG Electronics, Matsushita Electric Industrial Co.'s Panasonic brand, and Samsung Electronics, but aims to grab share in the market for HD TVs. Key to this will be the introduction of Blu-ray, the next generation DVD technology led by Sony that will compete against HD DVD, championed by Toshiba.