Sony Recasts Connect Situation, Insiders Point to Shutdown

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Sony Corporation is now responding to insider reports of an imminent shutdown of its Connect unit.

Over the weekend, reports in both Digital Music News and pointed to a near-term closure of the struggling digital music store, possibly within the next few months.   Executive sources referenced a meeting late last week that informed employees of the decision, and discussed the reallocation or termination of various resources.  Sony representatives were not available to discuss the situation ahead of the original story, though in a discussion Monday, media representative Jennifer Glass noted that the unit was merely being reshuffled and reorganized.

Glass denied reports that Connect is being prepared for termination, though insiders continued to point to an eventual shutdown.  “It’s over,” one source with connections into the organization flatly told Digital Music News on Tuesday.  “They’re leaving the building.”  The source also noted that the eBooks initiative, currently a subset of the larger Connect, would be preserved in the process.