Sony reaches pay-TV deal with Viacom

Sony has reached a preliminary deal with Viacom Inc. that will see it carry channels on its pay-TV service including MTV, Comedy Central and Nickelodeon, according to reports in the Wall Street Journal.

The Japanese company plans to stream cable channels and on-demand programming over Sony devices such as Playstations and Sony TVs, as it ups the ante with current cable, satellite and phone companies that sell subscription TV services.

It has been reported that there have also been discussions with other major entertainment companies including Walt Disney, Time Warner and CBS.

However, contracts with some pay TV operators will make it difficult for some programmers to licence their channels to newcomers. The US Justice Department is currently investigating restrictions in pay-TV contracts that may limit competition.