A Victory for Cable? Sony’s Internet TV Service Said to Fall Flat
For over a year, Japanese electronics giant Sony (NYSE: SNE ) has been working to create an Internet-based, cable TV killer: a service that would deliver live broadcasts and on-demand programming to owners of its PlayStation video game consoles and Bravia TV sets. Though it would likely be limited to owners of Sony’s hardware, it should compete with traditional paid-TV providers, and could deal a blow to the cable complex.
Or maybe not. According to The New York Post, Sony’s service will cost $60-$80 per month, making it just as expensive as the costly cable bundles it seeks to replace. If so, it is quite unlikely Sony will be able to shake up the cable industry the way many had hoped.
Sony looks to leverage PlayStation platform
An Internet-based cable TV provider may seem like an odd business for Sony, but it could indirectly support its core consumer electronics. Sony’s CEO Kaz Hirari told CNBC earlier this year that the company’s base of installed video game consoles — more than 25 million American households owned PlayStation 3s as of January — was a compelling advantage, one it was looking to leverage. That advantage has only grown in recent months, as Sony’s follow-up, the PlayStation 4, has been a runaway success, emerging as one of the fastest-selling video game consoles of all time.