DISH Network Corp. DISH, the second largest satellite TV operator in the U.S., is set to offer the popular HBO service with its newly launched Sling TV network. The company launched its Internet TV service called the “Sling TV” in Feb 2015.
Currently, this network offers 20 channels for $20 per month. The company offer some top-rated TV channels such as ESPN and Disney Channels of The Walt Disney Co. DIS, HGTV, Food Network and Travel Channel of Scripps Networks Interactive Inc. SNI, TBS and CNN of Time Warner Inc. TWX and several channels of AMC Network Inc. AMCX.
With the latest offering, Sling TV customers will be able to watch popular HBO TV shows such as "Sex and the City" and the latest episodes of "Game of Thrones" at an additional $15 per month. Using the HBO Go application, a Sling TV subscriber will watch as many "Sex and the City" episodes as he/she want in one sitting or watch the latest "Game of Thrones" episode later in the week if it was missed on Sunday night.
DISH recently announced that its live streaming multi-language television service called “DishWorld” has been converted to “Sling International.” This new service will provide global program content from nearly 200 channels in 18 languages starting at $15 per month.
Over the last couple of years, the internal dynamics of the U.S. pay-TV industry have been gradually shifting from cable and satellite TV operators to low-cost over-the-top service providers. The strong presence of online video streaming providers like Netflix NFLX and Hulu are posing significant threat to the existing pay-TV business model. Meanwhile, cord-cutting has also become a serious concern for major pay-TV operators.
DISH intends to check customer churn with its latest Sling TV offering. However, the risk is that a large part of its existing subscriber base may opt for this low-priced Internet TV service instead of paying for much broader but pricy satellite TV services. Nevertheless, a venture into the Internet TV genre may help DISH minimize its losses in the legacy pay-TV business.
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