Computer vision tech is creeping into the sports we love as a fairness arbiter because sensors are now largely unfailing -- and that is a big opportunity for Sony Corp. ((SNE) -Get Report).
Novak Djokovic on Saturday during the French Open wondered why pro tennis is not solely using cameras and software to make line calls. The current world No. 1 is saying out loud what others are thinking.
The tech is good enough, and would dispense with human error.
It would also be a huge branding win for Sony, a company that wisely put itself at the center of computer vision innovation.
The irony is that movement toward greater use of technology arose out of the global pandemic. At the recent United States Open tournament organizers were faced with an uncomfortable dilemma: There were too few line judges for all of the matches. The remedy was to replace humans with technology from Hawk-Eye, a computer system that uses multiple cameras and software to triangulate the trajectory of fast-moving objects in near real-time.
Speed and accuracy has made the technology popular in tennis since 2005 as an impartial second opinion for umpires and agitated players.
Except for center court, Hawk-Eye gear was in use at all of the US Open venues in 2020 and it was extremely well received. In fact, the only real controversy at this year’s tournament occurred when Djokovic inadvertently struck a line judge with an flippant backhand.
Sony bought the business in 2011 from a smaller British firm. Managers at the Japanese consumer electronics giant saw applications far beyond sports.
A proprietary algorithm rapidly stitches together data from many cameras simultaneously. In an era when smartphones were beginning to replace digital camera sales, securing this tech was prescient. Today, the Tokyo-based company is the biggest vendor of camera sensors used in smart phones, tablets and even industrial settings.
The company announced in May the arrival of two new image processors with fully integrated artificial intelligence processing. Putting the processing onboard will mean lower latency. It makes the chips perfect for the edge of networks, like video surveillance and security cameras.
Sensors equipped with built-in AI, according to a Reuters report, have been used to monitor workers at construction sites for safety violations. Others have been mounted in passenger vehicles to spot drivers who might be drowsy. And these are only the tip of the iceberg.
Sony is positioned to help companies build computers finally capable of seeing, and thinking.
This is paradigm shift. Cameras placed on factory floor robots or in the celling of retail showrooms require humans behind the scenes, glued to closed circuit monitors. Adding AI to chips, where the data is being collected, means much of the processing can be automated at the source. Perfecting this is a lucrative new business Sony managers are happy to cultivate.
The company plans to sell subscription-based data analytics. Enterprise developers will use the digital information to build algorithms to create efficiencies in existing systems, and potentially make new products.
Honestly, professional tennis is probably not going to make a huge dent on the bottom line at Sony. The potential revenues are too small. However, Hawk-Eye, especially with a larger role in the sport, is a big branding opportunity for the technology.
A tacit endorsement from the best player in the world doesn’t hurt, either.
"The technology is so advanced right now, said Djokovic, “there is absolutely no reason why you should keep line umpires on the court. That's my opinion”.
Meanwhile, Sony has been unable to meet primary demand for image sensors from the smartphone sector. Managers have been ramping up production as multiple cameras setups become common on most new smart devices. Given the company’s scale and market share, pricing has remained robust.
The stock now trades at only 16.6x forward earnings and 1.2x sales. Both of these metrics are within the historical range, yet they underestimate the potential impact of the new software business.
Shares could easily trade around $90 over the next 12 months, a potential gain of 21% from current levels.
The Link LonkOctober 06, 2020 at 01:00AM
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Sony Has a Vision for Better Tennis - TheStreet
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