A deal between
Southwest Airlines Co.
Dish Network Corp.
) will provide the flyers of the airline free live television
service on their own Internet devices including phones, tablets
or laptops. This pact calls for Dish Network to pay for the
services on over 400 Wi-Fi-equipped jets at the end of the year.
Passengers of Southwest planes can avail various television
programs on Fox News Channel, MSNBC, CNBC, Bravo, NFL Network,
Food Network, HGTV and Travel Channel, in addition to 75
on-demand shows. Earlier, the airline offered a similar service
for $5 per day.
However, this service does not include the passengers' access of
Internet, for which the airline charges $8 per flight. Southwest
provides Internet connection to over half of its fleet using Row
44 - a subsidiary of Global Eagle Entertainment Inc.
To make this offer more interesting, Dish will extend 12,500
frequent flier points to Southwest members who sign up for the
Dish Hopper Whole Home DVR and home programming scheme. Along
with this, the second largest satellite service provider of U.S.
) will also offer an
) iPad or a discount of $250 on Hopper subscription.
This initiative is part of Dish's marketing and promotional
strategy of exchanging the service - TV Flies Free - with its
advertisements throughout Southwest's air travel. The promotion
would include confirmation emails, airport billboards and
30-second commercials on television.
We believe that the addition of these attractive and novel offers
will push Southwest ahead of other carriers and strengthen its
position in the global scenario. These will also increase the
value and profitability of the company by brining in more
customers under its wings.
Southwest currently holds a Zacks Rank #3, implying a Hold
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