Viacom, Inc. (VIAB): Sony Corporation (ADR) (SNE)’s Internet TV Is a Step in the Right Direction

So while this Sony TV service is not exactly the revolution in pay-TV that many have been clamoring for, it is an evolution in services and technology. Fearing the loss of their captive customer base, traditional pay-TV distributors have fought tooth and nail to prevent companies from doing exactly what Sony is close to accomplishing. Although Sony will be contractually unable to offer customers the ability to choose their content, they will be able to compete technologically (Sony’s specialty) for customer dollars. In a perfect world, Sony would be able to negotiate for an a la carte model that would be presumably be cheaper for Sony and customers alike. But we are not quite there yet. Baby steps.

Foolish bottom line

With the launch of its PS4 in November and the likely launch of its Internet pay-TV service sometime in the near future, Sony is well positioned to capture the young consumers demographic, who are more inclined to become early adopters of new products, technologies, and services.That is the same demographic that has also been increasingly reluctant to pay for traditional cable TV, looking toward the Internet for their media options. It is for those reasons that the end of 2013 into 2014 could be a very interesting time for Sony and its investors.

The article Sony’s Internet TV Is a Step in the Right Direction originally appeared on Fool.com and is written by Matthew Luke.

Matthew Luke has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft.

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