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Viacom Announces Distribution Deal With Sony's Cloud Service

Viacom has agreed to provide 22 of its networks for Sony's upcoming cloud-based TV service, it was announced Wednesday.

The deal is the first time Viacom has agreed to provide its networks for an Internet-based live TV and video-on-demand service.

As of its launch, Sony's cloud-based TV service will offer subscribers at least 22 Viacom networks including BET, CMT, Comedy Central, MTV, MTV2, Nickelodeon, Nick Jr., Nicktoons, Spike, TV Land, VH1, BET Gospel, Centric, Logo, CMT Pure Country, MTV Hits, MTV James, mtvU, Palladia, TeenNick, Vh1 Classic and Vh1 Soul.

Subscribers will also have access to programming on Viacom's TV Everywhere websites and apps and Viacom's video-on-demand service.

“Viacom always strives to create transformational opportunities that combine consumer value and technological innovation,” Viacom CEO Philippe Dauman said in a statement. “Given our young, tech-savvy audiences, our networks are essential for any new distribution platform, and we’re excited to be among the many programmers that will help power Sony’s new service and advance a new era for television.”

 

Sony network entertainment business executive Andrew House added: “Our new cloud-based TV service will combine the live TV content people love most about cable with the dynamic experience they have come to expect from our network. Viacom’s award-winning networks are a perfect match for our new service, ensuring that our customers will be able to access the shows they love on their favorite devices, when and how they choose.”

 

RBC Capital Markets analyst David Bank said new entrants tend to pay premium fees compared to established pay TV providers. He said Wednesday's deal was "great" for the entertainment Industry. "More distributors, more competition, more demand...content becomes more valuable in every way," he explained.

article by Hilary Lewis

contribitor Georg Szalai

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