Having new competition and an increasing number of options with technology will typically drive prices down.
However, that doesn't seem to be the strategy the newest entrant in streaming video, Sony's PlayStation Vue, is taking.
As one media outlet notes, it could be viewed as the "Cadillac" of Internet TV services at this point, given its cost and heft of programming.
Whether everyone wants and needs a Cadillac is the big question, especially when there are several other video content vehicles purring along, offering almost as much content for a lower price.
Sony's PlayStation Vue 85-channel TV service, which will arrive first in Philadelphia, Chicago and New York, will cost PS households between $49.99 and $69.99. Depending on the subscription package chosen, consumers will have access to a bunch of network content from CBS and FOX, although ABC, ESPN and Disney are not on the list. The most expensive option includes cable content from LOGO, VH1 Classic and FOX College Sports.
Since it is cloud-based, there is no hefty installation, and all you need is a PS3 or PS4 and you get a 28-day DVR capability. As of now, there is no support for PlayStation Vita or PlayStation TV.
It will go head to head with the Dish's Sling TV, which costs about $20 a month, as well as impending services such as Apple's TV service, which likely will cost more than $20 but how much higher is hard to determine.
Big adoption is expected for Apple's service given its device reach. The projection is that Apple video service subscriptions will be 4 million in the very first quarter of its release and balloon to 10.7 million by 2018. That represents about a $4 billion business.
According to federal agency data, the average TV cable bill in the U.S. is about $64.
Sony's pricier approach and content partner strategy may also ignite new programming approaches by competitors, says an industry watcher.
"The bundling is coming unhinged right in front of our eyes," said BTIG Research analyst Rich Greenfield.
A big reason for that trend is being driven by competition and consumers' desire to have more flexibility with channel and programming options.
According to Vue's head of product, Dan Myers, the Sony focus is on the viewing experience and giving Sony PlayStation users what they expect.
"We definitely wanted this to be an experience where people were like, 'Yeah, this is like live TV but way better," Myers said, adding Sony is banking on more than satisfying the PlayStation gamer in the household.
"That gamer household is something we've defined even further," said Myers. "Lots of people use these platforms to consume Netflix and other digital media. The household is bigger than just the guy who bought the PlayStation."
As part of its debut Sony is offering a seven-day free trial.
