With PlayStation Vue, Sony is joining the ranks of companies looking to shake up the cable and satellite business.
"The big question at the moment is will people drop their incredibly expensive cable subscriptions in favor of just living an on-demand life," Enders Analysis senior research Michael Underhill told CNBC.
Sony will release a beta version of PlayStation Vue this month to selected PlayStation 3 and 4 users in New York, Chicago, Los Angeles and Philadelphia.
Users will be able to view the service through their PlayStation consoles and eventually on Apple's iPad.
Todd Juenger, a media analyst with Bernstein Research, told The New York Times that while the new Sony service innovates the television-watching experience, he expects that most people seeking to pay only for the networks they watch will be disappointed. He also said the lack of inclusion of ESPN could be a big hindrance for sports fans.
"People are expecting a transformative, disruptive new model where they can say, 'I just want to pay for this or that like iTunes,' " Juenger said. "That is not coming. Everybody is conspiring to make sure that is not going to happen."
"The issue for Sony is for them to keep the price low enough to compete with an operator that can bundle services into one attractive package," Richard Broughton, head of broadband media at IHS, told CNBC.
Disclosure: Comcast is the owner of NBCUniversal, the parent company of CNBC and CNBC.com.