Sony Corp (ADR) (NYSE:SNE) Shaking up Streaming Television Market
Sony Corp (ADR) (NYSE:SNE) is shaking up the streaming television market. The company has figured out how to entice people to choose its Internet TV offering by enabling them to pay per-channel. The move puts pressure on traditional TV providers as well as the likes of Apple Inc. (NASDAQ:AAPL), which is plotting entry into the streaming TV business.
Sony becomes the first among streaming TV providers to introduce per-channel payment. The model that looks reasonable for those who just want to pay for what they want to watch. Bundling of channels and offering them as a package has led people to pay for what they don’t really need, and Sony wants to change that. The company is taking the war right inside the territory of cable companies.
Verizon Communications Inc (NYSE:VZ) is another TV provider that came up with a slim TV offering called Custom TV. The service un-bundles some channels, especially sports, so that subscribers can pay less for their television entertainment. Cable companies and some content providers condemned Verizon’s move to un-bundle sports in Custom TV.
Sony Corp (ADR) (NYSE:SNE)’s per-channel TV strategy is expected to launch at the end of this month. For a start, the per-channel TV offering will feature three channels with more expected in the future as the company enriches the service.
With the per-channel streaming TV, Sony is early to put pressure on content providers and traditional TV distributors. Apple may also have to think hard about how to counter Sony when it introduces its much awaited Apple TV service. It is widely expected that Apple will also come up with a TV strategy that further pushes back TV bundling to offer subscribers more streamlined services.
Nationwide expansion of PlayStation Vue
Currently, Sony Corp (ADR) (NYSE:SNE)’s PlayStation Vue is only available in five major cities in the U.S., including New York City, Chicago and Los Angeles. Sony is expected to expand the streaming TV service nationally later this year.
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