With subscription service for AI-enabled imaging sensors, Sony is too aggressive

July 01, 2020
Digital Transformation More...
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Sony's image sensor business aims to embrace the SaaS business model for its AI-enabled in situ data-analyzing imaging sensors. It is a smart move for Sony to adopt a value-based pricing strategy to drive revenue growth. However, the company's move lacks understanding of consumer behavior. Charging consumers recurring fees to use the sensors will likely fail, similar to how BMW failed to keep its subscription business model for using Apple CarPlay. On the other hand, it would be more valuable for Sony to offer systematic sensing solutions for commercial or industrial uses, which could help drive tremendous revenue growth using the SaaS model. However, this requires significant interdepartmental collaborations and even external partnerships.

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