SPOTLIGHT: Sony Launching PS3 Online Video Service

Doug Mohney — Thu, 24 Apr 2008 23:37:21 -0400

Sony Corp. is lining up movie and TV studios to supply shows for its PlayStation 3 online video service to be launched this summer. This would be the third time for Sony to try an online video venture. Strike one was Movielink, which ended up sold last year to Blockbuster. SonyConnect, strike two, was shut down in March.

There are over 4 million PlayStation 3 consoles in the U.S. and 9 million worldwide and analysts credit the PS3 as the "decisive edge" in the battle to establish Sony's Blu-ray disk format as the HD playback standard in the home. The new service would position Sony to compete with a growing number of Internet-connected devices and services that deliver video to the TV, including arch-rival Microsoft's Xbox 360 console. Sony plans to embrace open standards that would make its offering compatible with a range of computers and hand-held devices, including its PlayStation Portable.

Microsoft's Xbox Live, with over 10 million subscribers, is currently tagged as Sony's biggest competitor. Subscribers have access to more than 4,800 hours of video, including 350 movies and more than 5,000 episodes of TV shows for sale. Parks Associates projects Internet video will reap about $6.4 billion in revenues from advertising, as well as paid downloads or rentals.

For more:
- Read the LA Times Sony PS3 Online Video Story

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