Sony to pull plug on Playstation Vue

Sony Corp said, it would shut down its cloud-based TV service PlayStation Vue in January, citing competition.

Sony announced that it's shuttering its Vue TV streaming service, apparently not being able to make it work despite numerous price increases. The service will end in January, citing competition.

Sony SNE, -0.34%   did not release how many customers Vue had, but it was seen as a small player. It will shut down in January. The industry’s latest hope for a successor to cable or satellite TV and a counter to Netflix NFLX, -1.21%   has now shifted to streaming services, including new entries from Disney DIS, +0.08% , Comcast CMCSA, -1.43%   and AT&T. Apple’s AAPL, +1.78%   version launches Friday.

Increasing competition for people’s dollars from all those services will put more pressure on the online-cable services.Vue's gimmick was that, like Sling TV, you could pay only for the channels you wanted. Pay-TV groups have been squeezed globally as viewers switch to online video platforms that often offer cheaper packages and churn out original productions.

John Kodera, Deputy President of Sony Interactive Entertainment says: “Unfortunately, the highly competitive Pay TV industry, with expensive content and network deals, has been slower to change than we expected. Because of this, we have decided to remain focused on our core gaming business.” He later adds, “We had ambitious goals for how our service could change how people watch TV, showcasing PlayStation’s ability to innovate in a brand-new category within the Pay TV industry.”

“Unfortunately, the highly competitive pay TV industry, with expensive content and network deals, has been slower to change than we expected,” said John Kodera, deputy president of Sony Interactive Entertainment. The entertainment segment would remain focused on its core gaming business, Kodera added.