DISH Network Corp.
) - the second largest satellite TV operator in the U.S. - is set
to offer live streaming of
Walt Disney Co.
) popular channels to its subscribers. The deal primarily targets
young price sensitive customers.
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This deal will allow DISH Network customers to directly watch
live shows on devices like PCs, smartphones and tablets, thereby
bypassing the need for a set-top box. The company has dropped its
ad skipping features from all Disney channels to make the latter
withdraw its litigations against the satellite TV operator.
The successful execution of the deal will allow DISH Network to
approach media companies with similar proposals. Moreover, the
rollout of such value-added services will not only help the
company boost subscriber growth but will also allow it to
safeguard its position against low-cost video streaming companies
) and Hulu.
Higher proliferation of smartphones and tablets has compelled
most pay-TV operators to deliver online content to its
subscribers. So, the deal with Walt Disney will certainly help
DISH Network to keep up with the popular demand of TV viewing on
The U.S. pay-TV market has already reached saturation level.
Unlike other U.S. cable and telecom operators like
) and Verizon, DISH Network lacks triple-play services (voice,
video and Internet).
Hence, to diversify its business portfolio as well as to deliver
online videos, the company acquired a significant amount of
wireless spectrums to either set up its own mobile network or to
align with an established operator It already holds 40 MHz
spectrum and has recently bought 10 MHz of airwaves for nearly
The company is yet to take any firm decision regarding its
wireless venture. At this phase, the deal with Walt Disney will
not only counter subscriber churn for DISH Network but may also
add a separate revenue stream for the company to drive its ARPU.
Moreover, Verizon is planning to deploy nationwide online video
services after acquiring video streaming technology of Intel.
Thus, DISH Network needs to keep abreast technologically to
Currently, DISH Network carries a Zacks Rank #3 (Hold).