America’s top internet television service PlayStation Vue could probably have a new owner now. If the news is to be believed, it’s parent company plans to sell it off. This development is due to the reason that, of late, PlayStation Vue has not been earning much.
Sony has seemingly approached Bank of America’s Merill Lynch investment group for help in hunting for a suitable buyer for the internet television service. The buyer would be receiving the PlayStation Vue’s subscriber list as well, along with the online cable service. Approximately, about 500,000 households across the US are a part of PlayStation Vue’s subscriber list.
No profits despite an increase in the subscription price
PlayStation Vue has been running into huge losses despite an increase in its subscription price. Just the previous summer, Sony had raised the prices of all its multi-channel plans by $5 per month. The same thing was done even the summer before. In fact, the most affordable “Access” price slot for PlayStation Vue is currently priced at $49.99 per month. It is quite expensive for a person looking out for a channel with not very high prices.
Apparently, Sony is not the only company to hike its subscription prices. Other competitors from the entertainment firms like YouTube TV, Hulu, and even AT&TDirecTVNow raised their channels’ subscription prices owing to an increase in content cost.
As per the news, previously, Sony had approached FuboTV, a company that is involved in streaming sports services. However, the talks didn’t do quite well. Thus, mostly, Sony would not be involved in any sales deal with FuboTV regarding PlayStation Vue.
Amongst all the companies in the US that offer online cable services, Sony pays the maximum for the television channels. Another issue that may arrive during any sale transaction on behalf of Sony could be that it may not be able to transfer all of its cable transaction deals.
From the technology point of view, PlayStation Vue offers peculiar features. At present, Apple TV offers to watch four streamers at the same time on a single screen. On PlayStation 4, one can view three streams simultaneously on a single screen. At present, PlayStation Vue is the only online cable service available. This feature gives it a lot of advantages.
The struggles faced by PlayStation Vue are not surprising to many. It has always felt like an odd player on the PlayStation platform. Most of the time, Sony’s marketing messages have focussed on gaming. They have not given much thought to the multimedia capabilities of the console.
It could probably be a good time for Sony to opt-out of the streaming business. This is because many new competitors are expected to enter the market. Among the few players who are expected to enter are Disney+ and Apple TV Plus. They would be coming on board next month. AT&T’s HBO Max is expected to enter next year. Also, NBCUniversal is all set to enter with its Peacock service. With all these companies paying attention to providing exclusive and high-quality content, the challenges faced by Sony are surely not decreasing anytime soon.