Targeting the hotel business,
DISH Network Corp.
) - the second-largest satellite TV operator in the U.S. -
launched the SMARTbox solution for hotel operations.
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SMARTbox solution will enhance the TV viewing experience of the
hotel guests by offering nearly 96 HD channels.
The hotel owners will be hugely benefited by the new service as
it will lead to a lower cost of maintenance by reducing 93% rack
space. The owners can deliver both HD and SD video content
through the same device, thereby slashing power usage by 90%.
DISH Network reported dismal results for the first quarter of
2013, with both the top and the bottom line missing the Zacks
Consensus Estimate. Quarterly total revenue was approximately
$3,555.2 million, down 0.7% year over year. However, subscriber
churn rate fell to 1.47% compared with 1.35% in the prior-year
The new Internet video streaming companies like
), Hulu and YouTube have become major threats to the overall
pay-TV industry as these offer videos at economical rates.
Moreover, the highly saturated U.S. pay-TV market coupled with
increased popularity of the triple-play service plan offered by
) and Verizon Wireless, will continue to impact DISH Network's
profitability going forward.
Hence, to counter such threats as well as to boost revenues, DISH
Network continues to explore new revenue streams. A few
days back, the company also teamed up with
NTELOS Holdings Corp.
) to offer fixed wireless broadband service across rural
Virginia. Thus, we believe that such strategic steps taken by the
company will likely improve its future profitability.
Currently, DISH Network carries a Zacks Rank #3 (Hold).