Sony And Viacom Reach Tentative Deal To Stream Cable Channels

Viacom has tentatively agreed to let its popular cable channels — like Nickelodeon and MTV — be carried by an Internet TV service that Sony is creating.

The agreement is believed to be the first of its kind between a major programmer and any of the technology giants that are trying to disrupt traditional modes of TV delivery. If this catches on with other programmers, Sony’s as-yet-unnamed service would let paying subscribers receive live cable channels the same way they use on-demand libraries like Netflix or Hulu. Intel and Google are working on similar services, but try to make it more user-friendly. To even have a chance at competing against incumbent cable services, companies like Sony and Intel need the permission of programmers, and that’s why the Viacom deal is considered a breakthrough. Having more cable choices especially could be appealing to a younger audience that is used to assembling its own services and using on-demand libraries like Netflix and Hulu.

[Aug 15]