Will Any of Dish's New Bets Pay Off?
Company Tries to Evolve For Internet Video Age
Dish boss Charlie Ergen clearly isn't comfortable with his company's role as a simple satellite TV provider, so he's spending significant cash to get into the wireless and video streaming businesses. As Internet video evolves, traditional broadband ISPs have responded with Internet video services of their own -- and some have jacked up rates by imposing caps and overages to counter revenue losses. Dish obviously is hunting for a similar evolutionary path.
While we're seeing a lot of talk about Dish competing with Netflix and traditional ISPs, there's not a lot to suggest these are bets that will pan out for Dish.
When it comes to video services, the company's recent supposed "Netflix killer"
received yawns from the press, and their attempt to acquire Hulu has been shelved
by Hulu's owners, who've put the deal on ice. While Dish has a leg up in this field due to licensing expertise, the fact they're stocked with "old TV" folks means they won't be willing to disrupt. If they don't disrupt, they won't innovate -- and they won't succeed at "dethroning" Netflix.
As for jumping into the wireless business, there's a long and winding road
littered with failed efforts by satellite providers to expand into other broadband delivery territories. Dish is eager to build an LTE network
, but that will require an FCC waiver and a lot of good fortune. Rumors suggest Dish could acquire Clearwire after Sprint's recently announced network transition plan
wound up leaving Clearwire a little high and dry. Still, gobbling up a struggling carrier and jumping into a market dominated by AT&T and Verizon doesn't exactly scream success.
Many of these companies tend to stumble badly when they wander outside of their core competency, and Dish investors are justifiably nervous about all of Dish's recent moves, even if many of Ergen's recent spectrum acquisitions were discount fare. Keep in mind DirecTV is also testing a fixed residential LTE service with Verizon
-- something that may or may not ever materialize as an actual product.
| |KrKHeavy Artillery For The Little GuyPremium
A long road ahead Because of the nature of their product, they are largely stuck with a service that people receive but cannot interact well with--- simply no upstream capability. So in effect they are "trapped" in their market by the very nature of their technology. They could use the Internet to deliver Streaming services to the home to add more value and expand services, but this suffers the same problems Netflix has---- their delivery method is at the whim of their direct competitors and no regulatory framework is in place to ensure they are treated fairly.
So the solution is to build out their own delivery network (LTE for example)... but that is an expensive, time consuming endeavor fraught with hurdles imposed by competitors and their protective legislation.
Good luck with that. Dish doesn't have the lobbying muscle or pull on Capitol Hill that some of their big telecommunications opponents do.
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
Not where I'm concerned I'm cancelling my Dish subscription at the end of the month. Don't have the bandwidth speed for good internet streaming, but I've upgraded my old-fashioned roof antenna, now getting 18 channels FREE over the air. Reason I have no use for Dish is because 75% of the time, with all those channels, nothing worth watching on.
Also, all the channels like History, Discovery, etc, have started broadcasting rubbish, instead of the programs they were ORIGINALLY set up to air!
| |SnakeoilIgnore Button. The coward's feature.Premium
My take. When dish came out with the Blockbuster movie pass, I dumped Gamefly. The Blockbuster thing is 10 bucks a month vs 16 bucks a month for Gamefly.
I was disappointed that there was no streaming of video at the Moviepass site.
I can stream video from Dishonline [You don't even need to be a Blockbuster movie pass member or a Dishnetwork subscriber]. Dishonline just streams what is available from Hulu. Granted, if you log in with your dish account, you get streams of what you pay dish for. Though for some reason the Fox streams are still 8 days behind, despite the dish/fox deal.
I like the moviepass thing, as I can get games or movies, and I can exchange them at my local blockbuster.
However, I still use netflix. But by dropping Gamefly, I am saving 6 to 7 bucks a month.
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.
Re: Don't underestimate Charles Ergen
said by Boone :You know, after reading that article on the crappy hughesnet (sp) internet...you could be right. Why don't they just come in and straight up dominate satellite internet by offering a data buffet at a price point of say $50 a month. Let that be the backbone for their internal video on demand service and then expand out.
Dish's full strategy has yet to be revealed. You can see how the parts are being assembled for an eventual nationwide mobile TV and internet service.
Reminds me of when Apple rolled out ITunes. It was only for Apple computers. Who saw the big picture?
"He should not have use his own cc. Crime does pay, you just got to be more smart about it."-silentlooker
·WOW Internet and..
Re: They forget one simple thing
said by Rob_:Want to cap and currently capping are two different things.
You did forget TWC wanted to do metered billing back in 2009? I'm sorry but, caps are the future of broadband and if your not being served with them, you will.
Make sure you read your TOS agreement
I have read my TOS, dumped UVerse over theirs. WOW's TOS does not mention usage caps in any fashion.