Sony recently revealed plans for a streaming video service during a keynote speech at the Consumer Electronics Show in Las Vegas. The service would combine live television with a large catalog of on-demand content although it’s not intended to directly compete with cable television according to CEO Kaz Hirai.
Intel recently tried to ink distribution deals with content providers but ultimately came up short. Apple has also been trying for years to land similar deals with content providers to no avail. The problem, as Intel CEO Brian Krzanich recently confirmed, comes down to volume. With no significant background or volume, Intel and Apple would essentially be starting from virtually nothing (excluding the installed base for the Apple TV).
Sony, on the other hand, already has a substantial number of Internet-enabled devices in the US to the tune of 70 million. That includes some 25 million PlayStation 3 consoles and a few million more PS4s.
Andrew House, president and group CEO of Sony Computer Entertainment, said that based on the number of users streaming videos on any given day, their network would rank among the top five cable and satellite providers in the US. What’s more, the PlayStation 3 is the number one device in the world for watching Netflix in the living room.
Hirai said ultimately what they want to do is offer a convenience. Everyone has been talking about it but thus far, nobody has been able to do it.
The service is expected to launch in the US later this year.
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