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DISH Network: Stock Up on Sling TV's Deal Renewal with Zee

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DISH Network Corp.'sDISH Internet TV service - Sling TV - announced the renewal of a long-term agreement with Asia TV USA, Ltd., a leading provider of South Asian programming and part of India's "Zee" group.

Notably, following Sling TV's deal with Zee, shares of DISH Network rallied nearly 6% in yesterday's trading session.

Inside the Headlines

Along with the renewal of 10 Zee channels offered on Sling TV and DISH Network, the fresh deal entails the inclusion of 27 Zee channels such as &TV, Living Foodz, Zee Bangla, Zee Cinema HD, to name a few.

Per the agreement, Sling TV and DISH Network will be the exclusive U.S. providers of Zee's premium on-demand library, which comprise movies and over 400 common video titles. Also, Zee is expected to shift viewers from its direct-to-consumer services to Sling TV or to authenticated access only.

Notably, the new channels will cater to a range of languages, including Arabic, Bengali, Tamil, Portuguese and Spanish.

Rationale Behind

Through this deal, DISH Network aims to offer South Asian content in the U.S., thereby reaching out to a wider audience and broadening its customer base.

Also, the company intends to provide customers with a more efficient system to access both linear and on-demand content.

Bottom Line

Internet TV is increasingly gaining market traction in the U.S. Of late, the legacy pay-TV industry in the country has been facing severe competition from online video streaming service providers. The low-cost over-the-top video streaming service has resulted in massive cord cutting, threatening the pay-TV business model. Internet TV has thus emerged as a strong alternative to pay-TV.

Evidently, DISH Network's Sling TV has helped the company check churn and minimize losses in its pay-TV business. However, Sling TV faces intense competition from Comcast Corp.'s CMCSA Internet TV service, Watchable, and Verizon Communications Inc.'s VZ Internet-based mobile video service - Go90. AT&T, Inc. T , too, has joined the streaming TV bandwagon with plans in place to launch the service by the end of 2016.

Nonetheless, we believe that the deal extension with Zee will boost Sling TV's popularity, adding to the company's top line and also strengthening its competitive position against rivals.

DISH Network currently has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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