nScreenMedia OTT multiscreen media analysis

nScreenNoise – Four reasons PS Vue closure was inevitable

nScreenMedia Video Podcast

After four years in the vMVPD market, Sony has decided to close its entry in the business. Here are four reasons PlayStation Vue closure was inevitable.

Chapter 1: Sony CEO sets a new approach (0:30)

In May 2018, Sony’s CEO, Kenichiro Yoshida set the company on a different course. It was clear to nScreenMedia at the time that PS Vue did not fit in. Here are four reasons Mr. Yoshida had good reason to close the service down.

Reason 1: Rising cost of licensing the programming (1:40)

Programming costs have been rising faster than inflation for the past decade. For pay TV operators, the cost rises have led to massive erosion in margins. The issue is a larger problem for vMVPDs.

Reason 2: PS Vue’s focus on sports a problem (3:00)

PlayStation Vue set out to focus on the sports-oriented viewer. It amassed a vast array of sports channels few other vMVPDs could match.  Unfortunately, sports licensing fees are one of the most significant factors driving up programming costs for operators.

Reason 3: Poor subscriber numbers (4:00)

Though PS Vue was one of the earliest vMVPDs to launch, the service was not able to drive growth like competitors. Subscriber numbers for competitor vMVPD services dwarf PS Vue’s humble 500,000 customers.

Reason 4: Fractious relationship with programmers (4:30)

PlayStation Vue had a problematic relationship with programmers from the start. Disputes have resulted in popular channels disappearing from the service, including some channels that were never to return.

In the end, the PlayStation Vue closure was an easy call to make for Sony.

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