Dish Network’s Focus on Driving Cash from Its Pay-TV Business and Sling TV
Dish’s strategy for driving cash from pay-TV business and Sling TV
In the previous part of this series, we looked at Dish Network’s (DISH) financial metrics and how the company is looking at transitioning to a connectivity company. In this article, we’ll see how Dish intends to drive cash from its pay-TV business and Sling TV.
During its 2Q17 earnings call, Dish Network noted that it is focused on retaining high-quality subscribers for its pay-TV business. The company is focusing on rural regions of the United States (SPY) and through several costs and revenues initiatives. At the end of 2Q17, Dish had a pay-TV subscriber loss of 196,000 subscribers. Dish considers its pay-TV business to be a mature business and is increasingly focusing on connectivity.
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The company is also offering its pay-TV subscribers the option to design their skinny bundles and buy less costly packages through Flex Pack. Dish is also focusing on cord-cutter customers by offering them the option of integrating over-the-top (or OTT) services like Netflix (NFLX) with its Hopper feature.
Now let’s look at how Dish is focused on expanding its margins for Sling TV.
Dish’s Sling TV business
Given the increasing competition faced by Dish’s Sling TV, Dish has also revamped its Sling TV service. Dish revamped its Sling TV service in 2016 and introduced two new packages for Sling TV—Sling Orange and Sling Blue. Sling Orange is a single-screen package priced at $20 per month, and Sling Blue is a multi-screen package priced at $25 per month.
Dish has also offered Sling TV subscribers the option to buy both packages at $40 per month.