In 2014, Sony introduced the PlayStation Vue cloud service, which was intended to be a cheaper alternative to cable TV delivered over the Internet. The launch took place the following year, and more agreements were signed with Fox, CBS, Viacom, Discovery Communications, NBCUniversal, Scripps Networks Interactive. But today, after 5 years, the company announced the forced closure of the service, explaining its decision by the high cost of content and the complexity of making deals with television networks.
PS Vue will be phased out in January 2020. Sony does not say how popular the service has become, but it is known that it has not become a major player in the new market. Along with PS Vue, Dish's Sling TV service was launched, and later there were numerous imitators from DirecTV, Google, Hulu and others.
This direction was originally announced as the future of television against the backdrop of the refusal of an increasing number of users from cable subscriptions. Online services offered access to popular television networks online at a lower cost than cable services. In addition, registration and unsubscribing does not require taking care of the equipment.
But customer growth on many of these services has slowed and even turned negative recently as prices have risen as channels expand to get closer to traditional TV counterparts. The version of AT&T TV Now, formerly known as DirecTV Now, is facing four consecutive quarters of declining customers, losing more than 700 subscribers in that time despite big discounts.
According to market research firm MoffettNathanson, the market for these services is currently estimated at around 8,4 million subscribers. By comparison, there are about 86 million households in the United States that use traditional television. "The market needs to shake up," says MoffettNathanson partner Craig Moffett, speaking of cheaper alternatives to cable service. βWhen they raised their prices, the customers left.β
The industry's last hope for a successor to cable and satellite TV has now shifted to streaming services like the hugely popular Netflix and new services from AT&T, Comcast, Disney and Apple. Increased competition from these new services will put even more pressure on online replacements for cable services like PS Vue, Pivotal Research analyst Jeffrey Wlodarczak said. βThe only way to innovate in pay TV today is to try to follow the lead of Netflix,β the analyst said.
Source: 3dnews.ru