DISH Network Corp.
) and Hearst TV settled their TV broadcasting issues and signed a
new agreement on this. As a result, DISH Network subscribers will
regain access of the ABC, NBC Universal and CBS TV network
Earlier, Hearst TV had demanded higher retransmission fees
from DISH Network which had led to legal hassle. DISH Network
currently carries a Zacks Rank #3 (Hold).
Hearst TV owns 29 local TV broadcast affiliate stations in 25
markets across the U.S. DISH Network subscribers in all of these
markets were deprived of the popular TV shows of
Walt Disney Co.
) controlled ABC,
) controlled NBC Universal and
) controlled CBS network.
Retransmission fees related disputes between TV broadcast
network or content developers and pay-TV distributers (cable
TV/satellite TV/fiber-based TV) are very common in the U.S.
DISH Network is transforming itself from a low-priced leader
in the U.S. pay-TV industry to a premium service provider to
reduce its subscriber churn rate. The company is focusing on
higher-priced subscribers while raising the prices of its
products and cutting discounts. As a result, average revenue per
user in the reported quarter was $81.24 against $77.47 in the
Average monthly subscriber churn rate for the pay-TV in the
fourth quarter of 2013 was 1.53% compared with 1.54% in the
prior-year quarter. At the end of the fourth quarter of 2013,
DISH Network had approximately 14.057 million pay-TV subscribers
against 14.056 million at the end of the prior-year quarter.
Recently, DISH Network achieved a significant milestone by
signing an online pay-TV deal with Disney. The agreement will
allow DISH Network's customers to watch live shows on devices
like PCs, smartphones and tablets, thereby bypassing the need for
a set-top box.
Moreover, Disney will also drop its earlier objection against
DISH Network's ad skipping Auto Hop device. The deal will also
set the platform for future online TV agreements with network
CBS CORP (CBS): Free Stock Analysis Report
COMCAST CORP A (CMCSA): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
DISH NETWORK CP (DISH): Free Stock Analysis
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