Satellite TV operator DISH Network Corp. (DISH) and lifestyle media channels owner Scripps Networks Interactive Inc. (SNI) have renewed a multi-year contract through which DISH will be able to offer the entire portfolio of Scripps’ channels to its subscribers. Importantly, the new agreement will enable DISH to offer its upcoming Internet TV subscribers to multi-stream Scripps’ contents either live or in the form of video-on-demand.
DISH has postponed the launch of its Internet TV service from mid-2014 to the end of this year. Technically, Internet TV is similar to cable/satellite TV services. The lone difference is that cable/satellite TV can be watched solely on television sets, while Internet TV shows can be viewed using tablets and smartphones. We believe that the growing deployment of super fast 4G LTE wireless technology and significant adoption of portable mobile devices are the primary reasons behind the popularity of Internet TV.
Internet TV is gradually gaining popularity in the U.S. In Jan 2014, Verizon Communications Inc. (VZ) purchased the unsuccessful Internet TV platform of Intel (INTC) and is currently negotiating with several content providers to live stream their shows. Verizon is scheduled to launch this service from mid-2015. Likewise, AT&T Inc. (T) has entered into a partnership with Chernin Group to offer Internet TV services by the end of this year. The company will invest over $500 million in this venture.
In Mar 2014, DISH achieved a significant milestone by signing an online pay-TV deal with leading media mogul The Walt Disney Co. (DIS). The agreement allows DISH’s customers to watch live shows of several Disney channels on devices like PCs, smartphones and tablets, thereby bypassing the need for a set-top box. Moreover, Disney dropped its earlier objection against DISH’s ad skipping Auto Hop device.
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