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Dish May Unveil Internet TV Service This Summer
by Karl Bode 08:29AM Wednesday Apr 23 2014
Bloomberg quotes anonymous sources who claim that Dish Network will be unveiling a new Internet TV service sometime this summer. According to those sources, Dish aims to target the 18 to 34 year old demographic with a live TV channel package that will cost $20 to $30 per month. The biggest hurdle is the same one countless companies before Dish have faced: stubborn broadcasters.
quote:
The largest content providers have placed several conditions on Dish’s service before they’ll agree to deals, according to two people familiar with the matter. At least two of the four major broadcast networks -- ABC, CBS, Fox and NBC -- must be included in the service, and at least 10 of the highest-rated cable networks must also be part of the package. Through its agreement with Disney (DIS), Dish has already signed up ABC, as well as cable channels ESPN and Disney Channel.
Granted Dish got Disney/ABC on board because they were willing to make their "controversial" Hopper auto-ad-skipping DVR a little less useful for consumers. Companies like CBS have suggested they're going to want a significantly larger pound of flesh if they're to sign off on such an effort. As such, expect Bloomberg's source's claims of "summer" to actually mean 2015 -- or never.

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mixdup

join:2003-06-28
Calera, AL
Reviews:
·Charter

So?

I don't see how this makes money or how it will be economically viable vs. cable or telco tv.

Does anyone honestly think Disney is willing to just take a haircut on their license fees? Probably not, so Dish is going to have to make it up on the infrastructure being cheaper. They'll be able to charge less because they won't be using the revenues from the internet service to pay for their billion dollar satellites and they won't have to send someone out to install it and they won't have to give you a set top box.

But, let's look at the flip side to that equation:
You'll have to use your own device to watch. That means you have to pay for it. Over the long run, that's probably not a bad deal, but means upfront costs. Also, I'll be shocked if there's any DVR functionality.

And the big one: You'll need an internet connection. One without a cap. On the first day this is announced, who thinks that Comcast, TWC, Charter, Verizon, and every other facilities based provider isn't going to deepen the "bundle" discount for video? When you pay for cable TV or internet, they roll up the cost of bringing the wire to your house in both services. All this will do is push that cost into your internet service. It would be trivial for other companies to match Dish's pricing if you are also buying internet service.

kapil
The Kapil

join:2000-04-26
Chicago, IL

Re: So?

Dish just rolled out limited DVR functionality on the Dish World IPTV platform...so assuming they use the same platform to deliver this new service, there may be some form of a DVR service.
--
»www.kapilville.com
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
Netflix clearly makes money at $8/month streaming dribble.
Dish, apparently, believes they can offer Netflix-equivalent "live channels" for $30 and earn a profit.

My guess is that the $30 lineup will be absent key networks that most people want, and filled in with Weather-Channel-adjacent themed channels, much like Dish', Directv, and Comcast entry-level packages feature, and once again, we'll yawn at the non-event, while there will be a small number of defenders who will "find something to watch" on it.

mixdup

join:2003-06-28
Calera, AL
Reviews:
·Charter

Re: So?

Yes, Netflix makes money at $8 a month, but they do not have live TV, and they have content that is rather old.

I'm sure they can string something together that will be cheaper than a full package of channels from Comcast, but it won't be the same product. If it is, Comcast and other cable companies will be able to match the pricing because it's very likely Comcast will have a "most favored nation" clause in their contracts, meaning they get content at the lowest price offered to anyone else.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: So?

Doubtful that Dish' product will have much of any "live tv" channels that you recognize, nor will much of it be "live".

Comcast, TWC, Dish and Directv have all strung together cheap channel packages - but they aren't recognizable content that people want to watch.

In order to get desired channels, bundling will always be required.

MacGyver
Don't Waste Your Energy
Premium,ExMod 2003-05
join:2001-10-14
Canada
kudos:2

"The largest content providers have placed several conditions"

Content providers don't care about choice, they only care about your money. So the consumer is still stuck with channel bundles they don't want.

Jon Geb
Wal-Mart Sucks

join:2001-01-09
Howell, MI

They will leave off Local sports... just watch

The biggest holdup to cord cutting is local sports.

In Detroit, we have 4 professional teams, only the NFL team is broadcast OTA. So if you are a Tigers, Red Wings or Pistons fan.... No cable/Sat... no sports.
mogamer

join:2011-04-20
Royal Oak, MI

Re: They will leave off Local sports... just watch

said by Jon Geb:

The biggest holdup to cord cutting is local sports.

In Detroit, we have 4 professional teams, only the NFL team is broadcast OTA. So if you are a Tigers, Red Wings or Pistons fan.... No cable/Sat... no sports.

Yet the city/state has spent hundreds of millions of dollars to build arenas, stadiums and infrastructure for billionaire owners without putting in any requirements to broadcast some games ota. But then politicians have been in bed with these guys for years and really couldn't care less about it's citizens. I guess it's all about getting those luxury suite seats!

Eddy120876

join:2009-02-16
Bronx, NY
Thats a given. We Sports fans know that sports will never come bundle in with regular packages. I live in NYC but all my teams are in Massachusetts and in both cities cable comps never bundle sports packages. Now if Dish comes out with a services that allows sports in say 30 dollar range then Im switching asap.

Jon Geb
Wal-Mart Sucks

join:2001-01-09
Howell, MI

Re: They will leave off Local sports... just watch

I would use Aereo and purchase a MLB and NHL package, but the pro teams block local broadcasts.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA

Re: They will leave off Local sports... just watch

said by Jon Geb:

I would use Aereo and purchase a MLB and NHL package, but the pro teams block local broadcasts.

The way the Supreme Court Justices remarked, it would seem as though Aereos days are numbered. But we won't know for sure for two or three months.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA

A "Live TV channel package"??

So people want to go back to watching TV the way we did it forty years ago? Watching everything Live? I started time shifting my TV watching in the mid eighties. I couldn't imagine going back to watching TV live.

LikelyNot

@rr.com

Too Many Content Providers Will Never Support This

As shown when everybody else has talked about starting a streaming service. As usual, wake me up when the public can actually subscribe.
dplantz

join:2000-08-02
Roslindale, MA

I would love this if it had the channels I want in HD

I would subscribe if I could get the channels I want in HD with some sort of DVR function. Dish should see if they could just offer their channel packages they have via iptv. It would open up a new market for them in places where you can't have sat service

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Trying to stay ahead.

I see this as Dish trying to stay ahead of the curve. They know people are cutting cords and so are trying to offer an "all in one solution".

Consider:
Hulu 8 bucks a month.
Netflix 8 to 12 bucks a month [Netflix is also raising rates]
Amazon Prime just over 100 bucks a year.

Between those 3 services you are paying close to 30 bucks a month. So Dish's deal doesn't seem so bad, if they can do it for that price.
--
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?.