dslreports logo
site
spacer

spacer
 
   
spc
story category
Will Any of Dish's New Bets Pay Off?
Company Tries to Evolve For Internet Video Age
by Karl Bode 09:30AM Tuesday Oct 18 2011
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.

Click for full size
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.

view:
topics flat nest 

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

1 edit

3 recommendations

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

wings10
I Am Legend
Premium
join:2004-06-09
South Elgin, IL

Re: A long road ahead

Good post. I agree.

Kommie
Premium
join:2003-05-13
united state
kudos:3

Ergen

I don't think Ergen is CEO anymore.

Kommie
Premium
join:2003-05-13
united state
kudos:3

Re: Ergen

»www.deadline.com/2011/05/dish-ne···th-tivo/
sparc

join:2006-05-06

these are small bets anyways

Ergen is picking up most of these transactions in bankruptcies for pennies on the dollar.

And most of it he could probably liquidate for what he paid. The theory was that Blockbuster could be liquidated for what Ergen paid. The spectrum he picked up from defunct companies probably could be resold for quite a bit of money as well.

If even one of them works out, he'll be sitting on a nice pile of profit compared to what little he paid for everything.

The hulu bet was the only risky one and that isn't going to happen anyways. I don't even expect a clearwire purchase unless they happen to end up in bankruptcy court after Sprint completely abandons them.

David
I start new work on
Premium,VIP
join:2002-05-30
Granite City, IL
kudos:101
Reviews:
·DIRECTV
·AT&T Midwest
·magicjack.com
·Google Voice

Re: these are small bets anyways

said by sparc:

Ergen is picking up most of these transactions in bankruptcies for pennies on the dollar.

And most of it he could probably liquidate for what he paid. The theory was that Blockbuster could be liquidated for what Ergen paid. The spectrum he picked up from defunct companies probably could be resold for quite a bit of money as well.

If even one of them works out, he'll be sitting on a nice pile of profit compared to what little he paid for everything.

The hulu bet was the only risky one and that isn't going to happen anyways. I don't even expect a clearwire purchase unless they happen to end up in bankruptcy court after Sprint completely abandons them.

I agree, I think if he would have gotten hulu he could have set up a blockbuster type of online service. Netflix is getting their monies by mail video and streaming. Who says he couldn't have a hybrid of redbox with a netflix flair. That by far would be quite interesting to pull off. He could instead of getting hulu aim for vudu.
--
If you have a topic in the direct forum please reply to it or a post of mine, I get a notification when you do this.
Koetting Ford, Granite City, illinois... YOU'RE FIRED!!

kamm

join:2001-02-14
Brooklyn, NY

Re: these are small bets anyways

Actually I still use Blockbuster as a mail-only service and it's great. Quick service, nice CSRs and cheaper than Netflix.
Albert71292

join:2004-10-31
West Monroe, LA

1 recommendation

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!

wings10
I Am Legend
Premium
join:2004-06-09
South Elgin, IL

Re: Not where I'm concerned

I agree.

I didn't get the History Channel or A&E to watch Storage Wars, Parking Wars, Ice Road Truckers or Pawn Stars etc.

I want History!!! I want Arts!!! Not stupid reality shows.
--
"Growing up happens in a heartbeat. One day you're in diapers, the next day you're gone. But the memories of childhood stay with you for the long haul."
amungus
Premium
join:2004-11-26
America
Reviews:
·Cox HSI
·KCH Cable

Re: Not where I'm concerned

Couldn't agree more. Most of the shows that had any educational value have been shelved in favor of completely pointless crap.

I've never personally subscribed to Dish, but I will say I cannot wait to cut cable. It's just not worth around $50-$60. I'd rather have the VERY few locals I might be able to pick up, the occasional movie, and internet than 99% of the vast wasteland that is TV.
steven s
Premium
join:2002-09-14
Dearborn, MI
PBS my friend! The OTA subchannels are good too.
nowcharter
Charter HSI

join:2002-09-11
Uxbridge, MA
I have till March on my contract, then done. Netflix has the documentary content that used to be on before the mindless reality shows took over History and Discovery. Disturbing and sad that their audience must prefer this.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1
That is the one thing I dislike about Dish or any of the providers out there. They tell you for X amount of dollars you can get 250 channs. What they don't tell you is that 175 of those channs are Sirius/cd music stations. And at least another 50 channs are nothing but shopping networks/infomercials pimping their latest product.
--
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?.

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

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?.
cableman0327

join:2004-10-10
Westminster, MD

Space Trash

They need to worry about all that space trash taking out their birds, once that happens, they'll be out of business. They forgot who got them started....

Boone

@comcast.net

Don't underestimate Charles Ergen

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?

pp03

join:2002-06-13

Re: Don't underestimate Charles Ergen

said by Boone :

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?

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.
--
"He should not have use his own cc. Crime does pay, you just got to be more smart about it."-silentlooker
Rob_
Premium
join:2008-07-16
Mary Esther, FL
kudos:1

They forget one simple thing

All ISP's are now doing hard caps, so thus, making any streaming services worthless. Nice try..

DumDum

@epri.com

Re: They forget one simple thing

News to me, no caps on TW in NC.

Rambo76098

join:2003-02-21
Columbus, OH

1 edit
Only a handful of companies are capping. I know for sure WOW, Verizon, TWC, and Insight are not. I'm sure there are others I am forgetting.
Rob_
Premium
join:2008-07-16
Mary Esther, FL
kudos:1

Re: They forget one simple thing

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

Rambo76098

join:2003-02-21
Columbus, OH
Reviews:
·WOW Internet and..

Re: They forget one simple thing

said by Rob_:

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

Want to cap and currently capping are two different things.

I have read my TOS, dumped UVerse over theirs. WOW's TOS does not mention usage caps in any fashion.

linicx
Caveat Emptor
Premium
join:2002-12-03
United State
Reviews:
·TracFone Wireless
·CenturyLink

I just ordered Dish

I dumped cable because I was sick and tired of the washed out signal at the end of the line. I dumped Direct too because I didn't like lt or the contractor. I finally found a company that carries the Classic Arts & Entertainment from the eras long gone. 9406. It is educational and free to all carriers except for one little caveat: no ads; no piggyback!

Dish needs to shake up the line up and distribute more uniformly across the different levels. They could add CAS, NASA & C-Span across all levels instead of dangling these freebies like a mouse to a cat.

They all do it to some degree, just like they all piggyback on 24/7 channels. its about money. What good does it do if there is no subscribers? My god how many infomercials can any stand?
--
Mac: No windows, No Gates, Apple inside