Sony said mulling Internet-based alternative to cable TV (WSJ)

By Nancy Tartaglione-Moore

According to Wall Street Journal sources, Sony is mulling the launch of an Internet-based alternative to cable TV service in the US. Per the report, Sony has approached several big media groups seeking to negotiate rights to beam their TV channels via the Web.

Sony's proposal would see the channels go out to Sony-made devices like PlayStation consoles, TVs and Blu-ray players.

The company is said to have made overtures to NBC Universal, Discovery and News Corp.

WSJ:

It remains unclear if Sony will reach agreements with the companies or if it will push forward with the service. One stumbling block could be Sony's desire to license a smaller bundle of channels than existing cable operators offer to undercut the incumbents on price and flexibility, according to people familiar with the matter. That could be a nonstarter for media companies, which would prefer not to undercut their biggest customers.

Dish Network's Charles Ergen has also reportedly been eyeing a move to offer live cable channels via the Web and Google is also said to have been mulling a plan to offer pay cable-TV services to consumers.

WSJ:

The potential advent of Web-based TV distributors comes amid turmoil in the entire business, as viewers watch more online video and the number of homes willing to pay for traditional service nears saturation. If an upstart like Sony gets traction, some traditional cable operators might fight back with their own stand-alone Internet-based packages, creating a new wave of competition—and potentially lower video-subscription prices for some consumers.