DISH Network Corp. (DISH) has unveiled its unique TV Everywhere services. TV Everywhere is a suite of integrated products designed to maximize the convenience and ease of watching TV anytime and anywhere. The customers of DISH Network need to pay one time for the content and then can remain connected to this service. TV Everywhere services will enable DISH Network subscribers to access all their live and recorded programming on a laptop, mobile device, or anywhere in the home using DISH Network WiFi Monitor.
DISH Network continues to position itself as a low price leader in the U.S. pay-TV industry by subsidizing the cost of equipment and installation to increase subscriber base. The company also focused on increasing distribution of highly rated DVR and HD (High-Definition) equipment, as value addditions to drive subscriber growth and retention. However, global economic downturn has negatively impacted the pay-TV industry. Furthermore, the penetration of pay-TV households approaches 90% in the U.S., leaving little room for any significant future growth.
In the U.S., pay-TV market is highly competitive. DISH network is currently the third largest pay-TV service provider with little over 14 million subscribers, well below Comcast Corp’s (CMCSA) 23.8 million subscribers and Direct TV Group’s (DTV) 18.4 million subscribers. Time Warner Cable Inc (TWC) is quickly approaching DISH Network with more than 13 million subscribers. Competition has intensified with the rapid growth of fiber-based pay-TV services offered by telecom operators. Moreover, new internet protocol television (IPTV) products/services have also begun to impact the pay-TV industry. Under this scenario, it was critical for DISH Network to introduce an innovative strategy to retain its subscriber base.
TV Everywhere business model is gaining popularity among the North American cable MSOs. Comcast has started its “on Demand Online” services in the U.S. Time Warner Cable and telecom giant Verizon Wireless (VZ) have also decided to start the trial run of their own version of TV Everywhere services. In Canada, Rogers Communications Inc (RCI) is also offering TV Everywhere.
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