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Chronicles

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Sources: Sony has hired bankers to explore a sale of its Playstation Vue service, which would include the company's tech and a subscriber list of around 500K

Sony Corp. is exploring the sale of its Playstation Vue service, which offers a slimmed-down version of cable TV delivered over the internet …

The Information

Context & Ripple Effects

PlayStation Vue was Sony's bet that a console brand could anchor a slimmed-down cable bundle: it launched in three cities in 2015, added ESPN, ABC and Disney channels that fall, and went nationwide with $30 'Slim' bundles in 2016. But scale never followed — the service took over a year to pass 100K subscribers, and by mid-2019 Sony was raising prices $5 across all tiers, following YouTube TV's April increase rather than fighting it.

Now sources say Sony has hired bankers to sell the whole apparatus — the streaming tech plus roughly 500,000 subscribers — and days later the company confirmed it will shut Vue down entirely on January 30. The pairing suggests the auction either found no buyer at Sony's terms or ran alongside a wind-down decision already made; either way, Sony is exiting live TV rather than funding another round of carriage-cost escalation.

First-order effects

  • Sony's ~500K Vue subscribers and its streaming-TV technology go on the block together, giving any buyer an installed base plus the plumbing — while Vue's own staff and content-licensing deals face an owner change or a January 30 shutdown.

Second-order effects

  • Rival vMVPDs like YouTube TV, whose April price increase Vue had matched in July, lose a sub-scale price-follower and face one fewer competitor for cord-cutters; Disney and other programmers that joined Vue's lineup in 2015 lose a distribution point worth half a million households.

Third-order effects

  • If the pattern holds, the virtual-MVPD market winnows to players with scale to absorb rising carriage fees, while console makers retreat to what they control — Sony's 125 million PlayStation monthly active users become the audience it monetizes through its own services rather than licensed cable channels.

The trend: Live-TV-over-internet is consolidating around a handful of scaled platforms, with sub-scale entrants like PlayStation Vue exiting or selling as carriage costs outrun subscriber growth.

Discussion

  • @tvgrimreaper TV Grim Reaper on x
    Sony losing piles of money on Vue, searches for someone interested in losing piles of money on Vue. And, has “streaming” become the default term for “delivery of entertainment over the internet”? Because Vue/YouTubeTV are completely different business than Netflix/Disney+. https:…
  • @nibellion Nibel on x
    Sony is apparently looking into selling off PlayStation Vue, their TV streaming service, due to it losing money https://www.theinformation.com/ ... https://twitter.com/...
  • @cityofthetown Tom Dotan on x
    News: Sony is looking to offload Vue, its cable channels service for the Playstation. Is this the beginning of the end skinny bundle era? w/ @jtoonkel https://www.theinformation.com/ ...
  • @valleyshook PodKatt on x
    Weird description of “skinny” , as Vue is one of the more robust and expensive of the streaming platforms available. Still, it will be a shame to lose the best legal free way to scam a free weekend of the Longhorn Network when it's needed. https://twitter.com/...