Sony PlayStation Vue adds live broadcast from the Big Four


Details

Michelle Clancy

| 28 May 2016

| 28 May 2016




Sony has significantly beefed up its PlayStation Vue streaming TV service with local feeds of all four major US broadcasters.



Playstation VueThe agreements only cover network-owned and -operated affiliates, but it’s a big coup for the service, which to start only had an existing deal with CBS that made that network's shows available on demand nationally. Then, the service’s recently launched Slim packages added dozens of live cable channels along with next-day access to major broadcast shows and a cloud DVR. It can now offer both live and on-demand content from the stations in those markets, which gets it even closer to being a viable cable package replacement.

It said that the next step is to ink carriage deals with various local station groups.

The development is also a big competitive move vis a vis its main rival, Sling TV, Dish Network’s OTT service. Sling TV offers ABC in O&O markets via a $5 add-on tier that also includes Univision and UniMás, and its trial multi-stream tier offers Fox content in its O&O markets.

Live broadcast has been an elusive get for OTT players, because the arena is a thorny thicket of content licensing snags for distributors. And that means that as a replacement for traditional cable or satellite subscriptions, OTT services largely fall short — no local news or weather, and no live primetime events like sports and awards shows.

Adding broadcast requires OTT providers to license broadcast feeds on a per-affiliate basis, per market, and pay retransmission fees to the stations’ owners in order to show them. The FCC has not yet grouped OTT services under what’s known as must-carry rules, so broadcasters are not required to make a deal with them for carriage. And that means that broadcasters can hold their content over OTT’s head as expensive leverage, particularly since network ratings continue to show that broadcast fare is still some of the most sought-after in TV.

But, because Sling TV and Vue are more expensive ($50-$80) than the typical $10 subscription embodied by Netflix and Hulu, they can better afford premiums being paid for the content.

Analyst firm Ovum said that live direct-to-consumer initiatives will mean a reassertion of the traditional TV value chain, pushing back against technology-led OTT specialists such as Amazon, Netflix and Hulu.

"Until now, watching the latest Hollywood movies and TV shows has largely been the preserve of downloads, discs and pay-TV," said Tony Gunnarsson, a senior analyst in Ovum's TV practice. "What we're seeing in maturing markets such as the US is that the audience is shifting towards premium linear streaming, which is augmenting well-established, free on-demand services such as YouTube.”