Company hopes to take the lead in online pay-tv; set to broadcast MTV and Comedy Central shows.
The deal will see Sony have the right to carry the media company's channels and stream them over the internet or host them on an on-demand platform, according to WSJ.
“Sony would beam the service to Sony devices like its PlayStation gaming consoles and Sony TV sets, said a person familiar with the situation,” explained the publication.
This comes as rumours surfaced that Microsoft is set to refinance a remake of cult BBC series Blake's 7, in a bid to expand its exclusive TV and film content alongside the Spielberg produced Halo series.
Both Sony and Microsoft are hoping to ape the success of internet streaming services such as Netflix and Amazon, which have appeal to audiences with their mix of back catalogue titles and self-produced content, such as the former company's remake of House of Cards starring Kevin Spacey.