The second largest satellite TV operator in the U.S.,
DISH Network Corp.
) created history by signing an online pay-TV deal with the
leading media mogul
Walt Disney Co.
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The agreement will allow DISH Network's customers to watch ESPN,
ABC and Disney channels on PCs, smartphones and tablets through
the Dish Anywhere app. Moreover, Walt Disney will also drop its
earlier objection against DISH Network's ad skipping Auto Hop
Earlier, in May 2012, four major TV network companies -- Walt
)-owned Fox network and
) NBC Universal -- filed a lawsuit against Dish Network's Auto
Hop device. The device allowed users to easily skip ads while
watching recorded TV shows on multiple platforms. However, the
shows can be viewed after a window time of 24 hours. The
broadcast majors claimed that the Auto Hop device not only
violates copyright laws but also significantly jeopardizes their
Hence, the new deal with Walt Disney will not only drop the
technical objections against the satellite TV operator but will
also set the platform for the future online TV agreements with
other network companies. Moreover, DISH Network has also deferred
its recorded TV viewing options by three days.
DISH Network exited fourth quarter of fiscal 2013 with 14.057
million pay-TV subscribers and 8,000 pay-TV subscribers.
Moreover, average monthly pay-TV subscriber churn rate in the
same quarter was 1.53% compared with 1.54% in the prior-year
quarter while average revenue per user was $81.24 against $77.47
in the year-ago quarter.
Thus, we believe that the launch of such value-added services
will not only drive ARPU growth but will also reduce subscriber
churn while moving ahead.
Currently, DISH Network carries a Zacks Rank #3 (Hold).