Sony is said to be seriously considering releasing an internet-based alternative to cable TV. This would be a serious threat to cable and satellite operators that dominate the pay TV market. The company has already approached several media companies that own TV channels. It is negotiating the rights to offer the TV channels on the internet to consumers based in the United States.
Sony wants to transmit the channels over the internet to its devices, which include PlayStation gaming consoles, Blu-ray players, and television sets. Sony has sold more than 18.1 million PlayStation 3 consoles in the United States alone. There are more homes have other internet-connected devices made by Sony.
Comcast, which is the biggest cable operator in the United States, has around 22.4 million video subscribers and serves around 52 million homes. It would be one of the companies that would be affected once Sony launches this new service.
Cable operators might not want to take this sitting down. Most of the media companies have contracts with cable operators and this could lead to new round of contract negotiations as cable operators try to persuade the content providers from signing with Sony. In the end, consumers would be the winners. They get more choices down the line and can decide which company offers the better deal.
