Reports about Sony seeking a buyer for its Playstation Vue business circulated late last week, courtesy of The Information, indicating an uncertain future for Sony's TV streaming service. Today, the Japanese company announced that it will be shutting down PlayStation Vue on January 30 next year.
John Kodera, Deputy President of Sony Interactive Entertainment, wrote in a blog post that Sony's decision is due to the slow pace of what he described as a "highly competitive Pay TV industry, with expensive content and network deals". The Information reports that PlayStation continues to bleed cash and that Sony struggles to keep up with high programming costs.
Kodera says movie and TV content will remain available to consumers through the PlayStation Store on PS4 and through its wide range of partner entertainment services. He adds:
"With 100 million PlayStation 4s in the market today, our community continues to grow and thrive. We will continue to deliver the best entertainment experiences across the network, along with other key gaming services, including PlayStation Now and PlayStation Plus."
Moving forward, the company will shift its focus to its gaming business. PlayStation Vue was launched in 2015 as an over-the-top Internet television service with a bundle of different channels for $40 per month. In 2017, Sony dropped its cheaper Slim tier offering in favor of PlayStation Vue.