Sony announces internet TV service, plans to start testing it later this year

Not discouraged by Intel’s (S INTC) failure to launch its OnCue TV service, Sony (S SNE) just announced at CES that it wants to become a pay TV provider of is own and offer customers in the U.S. a cloud-based TV service with live TV and cloud DVR functionality.

Sony Computer Entertainment CEO Andrew House officially announced the service on stage during Sony’s CES keynote in Las Vegas Tuesday, saying that the company intends to start testing the service in the U.S. later this year. House said that the service will stream live and recorded programming to TVs, game consoles and mobile devices without the need for any additional set-top boxes, and that subscribers will be able to search across live and on-demand content.

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Sony is uniquely qualified to launch such a service, Hall said, because it already has more than 70 million internet-enabled devices in the market, and he added that the PS3 is already the most popular device to stream Netflix content.

Hall didn’t provide additional details on the launch date or pricing, but said that more information would be revealed soon. Sony President and CEO Kaz Hirai added that the TV service is part of a plan to become “a single source of entertainment.”

Reports that Sony was looking to launch its own pay TV service first surfaced last year, and the company reportedly even inked a deal with Viacom in August. However, this is the first time Sony has actually confirmed these plans.

Intel had announced its own plans to launch an online TV service called OnCue early last year, originally with the goal to have it up and running by the end of 2013. However, the company has since abandoned these plans and is now looking to sell parts or all of OnCue to Verizon.