Satellite TV operator DISH Network Corp (NASDAQ:DISH) has become the first pay-TV operator to offer a whole-home 4K programming services of Netflix, Inc. (NASDAQ:NFLX) via its Hopper 3 DVRs. The company announced that the streaming video-on-demand operator’s content can be viewed throughout the home.
Up to seven TVs in the home can stream 4K services of Netflix using DISH Network’s 4K Joey which will be added with Netflix’s apps. Customers should have Hopper 3 DVRs and 4K Joey, and be a subscriber of Netflix’s $11.99-a-month 4K service. They also need 4k-enabled TV set and robust broadband access supporting at least 25 Mbps download speeds.
DISH Networks is already streaming Netflix’s programs through its over-the-top (OTT) Sling TV video streaming service. DISH Network has also launched a streaming player called AirTV Player for the same reason.
For the last couple of years, the internal dynamics of the U.S. pay-TV industry have been gradually shifting from cable and satellite TV operators to low-cost over-the-top service providers. The strong presence of online video streaming providers like Netflix and Hulu are posing significant threat to the existing pay-TV business model. Meanwhile, cord-cutting has become a serious concern for major pay-TV operators.
DISH Network intends to check customer churn with its latest Sling TV offering. However, the fast-growing video streaming service industry has attracted telecom and tech giants to this space, which in turn has intensified competition. Consequently, Sling TV is also facing stiff competition from AT&T Inc.’s (NYSE:T) DirecTV Now, Hulu and YouTube TV of Alphabet Inc (NASDAQ:GOOGL). Notably, in the second quarter of 2017, DISH Network lost 281,000 linear pay-TV customers.
The Bottom Line on DISH Stock
A number of pay-TV players have adopted Netflix services on their set-top boxes to put a check on customer churn. Meanwhile, DISH Network has been focusing on rich content and media in its services. Netflix has steadily added to its 4K library since introducing the service two years ago. This will help DISH Network to remain competitive in the market.
Price Performance of DISH Network
DISH Network’s shares have lost a massive 15.70%, underperforming the industry’s decline of a mere 0.78% over the past 90 days. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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