Dish Network's Plans For Web Television Won't Change Anything
June 6, 2014
Tired of subscribing to cable or satellite television? Later this year, Dish Network hopes to begin offering a Web TV service that would work across multiple devices, including mobile. The company hopes to charge $30 per month for a bundled package, according to Re/Code.
The Web TV service already has the backing of ESPN and other Disney Channels. What would you get for $30?
Bernstein Research’s Todd Juenger believes Dish Network could convince broadcast networks to come onboard, along with some channels from 21st Century Fox, AMC, and Comcast. A hypothetical lineup would include:
As you can see, the bundle listed above would cost just under $22 a month in programming fees.
Juenger doesn’t think Dish Network would make a lot of money under this scenario, nor does he believe there’s a very big market for this type of lineup. Additionally, he says a Dish Network bundle might convince someone else to offer a less expensive Web bundle.
To get closer to a sweet spot for consumers, the analyst suggests dropping Disney, ESPN, and ABC, which costs around $11 per month. Dropping other broadcast networks (which are available with an antenna) would bring the cost down even further.
Re/Code concludes:
As you can see, the bundle listed above would cost just under $22 a month in programming fees.
Juenger doesn’t think Dish Network would make a lot of money under this scenario, nor does he believe there’s a very big market for this type of lineup. Additionally, he says a Dish Network bundle might convince someone else to offer a less expensive Web bundle.
To get closer to a sweet spot for consumers, the analyst suggests dropping Disney, ESPN, and ABC, which costs around $11 per month. Dropping other broadcast networks (which are available with an antenna) would bring the cost down even further.
Re/Code concludes:
Then you could end up with a package of about 50 cable channels, which would cost about $11, and could retail for $15. And if you paired it with Netflix or Amazon Prime, that might be pretty interesting.Yes, this would be interesting. Unfortunately, I don’t think it would be much of a game changer. In its current form, cable and satellite subscribers are forced to pay for channels they don’t watch. Neither of the Dish Network scenarios mentioned above would change this. To get the public really excited, a company needs to offer a la carte programming. This is the type of service Apple has long advocated for the Apple TV. Unfortunately, even a company the size of Apple has been unable to convince content providers to bypass cable and satellite companies, leaving us where we are today. So the wait for something better continues ... See also: Peer-To-Peer AirPlay Arrives On iOS 8, Apple TV, Steve Jobs Biographer Says Apple Wants Beats' Iovine To Run Video Content Service, and Confirmed: AT&T To Purchase DirecTV For Almost $50 Billion.
