The second largest satellite TV operator in the U.S.,
DISH Network Corp. (
DISH
)
, enriched its award winning Hopper device by allowing its users
to watch TV shows while traveling.
Despite facing lawsuits from leading media channels regarding
DISH's new Auto Hop facility, which allowed customers to easily
skip ads while watching recorded TV shows, the company has
enhanced the new device with more music and gaming apps. Each
Hopper device is integrated with Sling technology, offering
smooth streaming of TV shows on PCs and Tablets anytime and
anywhere. The device also features a Dish Explorer app, which
allows subscribers to not only remain in touch with the latest
shows and updates but also helps them to tweet while watching TV
shows.
However, the most exciting feature of the product is the
ability to view offline TV shows
on Apple Inc.
's (
AAPL
) iPad. It is possible by transferring the shows from Hopper to
iPad through WiFi technology, which is already integrated in
every Hopper device, hence putting pressure on revenues of other
TV channel players, who sell their contents on iTunes.
However, other features like the 2-terabyte hard disk capable
of storing 2,000 hours of sports and entertainment contents,
multiple viewing options and ad skipping benefits remain the
same.
The new Hopper device is expected to hit the store in the
forthcoming months. The subscribers, who opt for a two-year
contract, will get the Hopper device free of cost.
Higher penetration of smartphones/tablets, coupled with
increased rollouts of 3G/4G LTE technology, has completely
changed the TV viewing options for customers. Viewers are now
demanding multiple viewing options with anytime and anywhere TV
service facility. In particular, the younger generations, who are
extremely tech savvy, will be highly influenced by such
changes.
At present, the U.S. pay TV market is getting saturated on the
back of stiff competition from other cable and telecom players.
In addition, the launch of video streaming services from
Netflix, Inc.
(
NFLX
) and Hulu at lower price has further intensified the
competition. Moreover, sluggish economic growth coupled with a
continuous increase in cable prices have forced most of the
subscribers to cut their cord and opt for cheaper online video
services. In order to counter such competition, Dish Network is
trying to explore new markets with its innovative over-the-top
product.
We maintain our long-term Neutral recommendation on DISH
Network. Currently, it has a short-term Zacks #3 Rank (Hold) on
the stock.
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