Game Consoles to Challenge Pay TV


Author: Nat Worden

Sony has agreed to offer on-demand access to HBO programming through its PlayStation 3, the latest example of a videogame-console maker aiming for a bigger role in the digital living room.

Sony and its chief competitors in the videogame-console market, Microsoft Corp. and Nintendo Co., have struck a series of distribution deals recently with leading media providers, including cable networks, major film studios, Netflix Inc. and Major League Baseball. The agreements position the console makers to challenge pay-TV service providers like cable and satellite companies. "The game console as a set-top box does have legs," said Ben Piper, analyst with market-research firm Strategy Analytics. "From a revenue perspective, it represents just a sliver at this point, but cable companies and other pay-TV operators would be ill-advised to ignore this as a threat." Owners of Playstation 3 consoles, known as PS3s, will be able to pay to download episodes from 11 HBO series, including "Big Love," "Curb Your Enthusiasm," and "Entourage," as soon as they become available for sale in the DVD format, roughly 11 months after premiering on the network. Sony plans to add new HBO material every Tuesday to expand the offering.

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