Sony Corp unveiled its latest project, the PlayStation Vue, a service which provides access to live TV and on-demand content without being connected through a cable or satellite.
The company said the video streaming service will be released for beta testing later this month in the New York area. Initially PlayStation Vue will offer around 75 channels from a variety of media companies, including CBS, Viacom, Fox and NBCUniversal.
The service will start on an invite-only basis and the company will select PS3 and PS4 owners to test the Vue during the beta. After New York, users for participation will be chosen in Chicago, Philadelphia and Los Angeles. The service will also become available on iPads shortly thereafter, and later on more Sony and non‐Sony devices. PlayStation Vue is expected to go nationwide in the first quarter of 2015.
Sony is bringing some improvements to TV viewing. It adds a search option for shows and allows users to mark their favorite ones. Consumers can also scan recommendations and store programs in a cloud-based digital video recorder.
Television is “an area that has been crying out for innovation” Andrew House, president of Sony Computer Entertainment Inc., said in an interview. He did not provide an answer on how much the service is going to cost but hinted that the company is not looking to position itself as a low-cost rival to cable TV. “I’m not looking at it in terms of a substantial discount” he added. “I’m looking to offer a better sense of value for money.”
The competition in the video streaming segment is rising by the minute with companies like Time Warner and CBS Corp., which plan to launch video subscription services. There is risk for Sony of pricing the Vue too high, as customers are used to inexpensive online services. Netflix charges $8.99 a month and the Dish Networks planned service will cost a dollar per day or $30 a month.
Sony has a 35-million PS3 and PS4 user base, which will help the Vue initiative. According to the company, its consumers are mostly between the age of 18 and 35, a much desired and difficult demographic for advertisers.
Vues digital video recorder feature will allow users to “favorite” up to 500 shows. Then the cloud-based technology will record all episodes of the shows and leave them available to watch for 28 days after an episode fist airs.
Sony said users wont require any additional hardware in order to get access to the Vue, all consumers need is a PS3 or PS4 console and a broadband connection.
Sony Corp lost 0.66% on Thursday and closed at JPY 2 350 in Tokyo, marking a one-year increase of 34.59%. Shares were down 0.73% to $20.48 by 15:38 GMT in New York. The company is valued at JPY 2.72 trillion. According to the Financial Times, the 17 analysts offering 12-month price targets for Sony Corp have a median target of JPY 2 100, with a high estimate of JPY 3 000 and a low estimate of JPY 1 400. The median estimate represents a 10.64% decrease from the last price of JPY 2 350.
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