Sony, Google, Intel and Apple Inc. are trying to obtain programming rights to win TV viewers from cable, phone and satellite companies. The tech giants plan to use existing cable, fiber and wireless networks, as Netflix Inc. (NFLX) does, to offer Web-based TV in living rooms and on tablets and smartphones.
The companies are seeking to grab a slice of the $100 billion a year in U.S. pay-TV fees collected by cable, phone and satellite providers. On average, U.S. viewers pay about $80 a month for programming bundles, with the revenue shared by broadcast and cable networks. The TV industry also collects $59 billion a year in ad sales.
Tokyo-based Sony recently reached a preliminary agreement with Viacom Inc. for access to programming such as Nickelodeon and Comedy Central, a person familiar with the matter said last week. Apple is also working on a TV service.
Jon Carvill, an Intel spokesman, declined to comment. Lily Lin, a spokeswoman for Mountain View, California-based Google, didn’t respond to a request for comment.