Sony's internet TV to disrupt Europe's pay TV markets

 

 

Accessing internet video content on the TV is not new. Users can easily do it themselves by connecting the PC to the TV, and specialist equipment, such as Apple TV, is also readily available. However, we still believe Sony’s development to be significant.

 

Unlike a number of previous product launches, Sony’s has:

Of course the take-up of new Bravia TVs – not the cheapest brand on the market – will take time to filter through to the market.

 

Unlike the VoD service, which can be rolled out quickly to existing PS3 owners, the rollout of the catch-up TV services will take much longer. This certainly gives pay-TV owners some breathing space.

 

However, placing content directly onto the TV is a significant disruptor for pay TV operators.

 

For the first time, users will have a choice of platform directly on the TV set (i.e. without having to purchase another set-top box) for accessing interactive and on-demand content. This will certainly loosen the pay-TV operators’ control over where their customers shop for content such as premium movies, and – if the free to air content is good enough – perhaps over customers in general.

 

One thing lacking in Sony’s story, especially around catch-up TV, is the ability to ensure quality of service.

 

Its iPlayer service on the PS3 can already suffer from pauses during programs on certain broadband lines and at certain times of the day. Sony’s view on this seemed to be that it was the broadband operators’ or the content owners’ problem to resolve.

 

Although the VoD service shouldn’t suffer in the same way, as it uses progressive download techniques, quality issues on the catch-up TV service could take the shine off Bravia internet video, which could then be used to the pay-TV operators’ advantage, assuming that by then consumers are still willing to pay a premium for quality of experience.