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Why Is Dish Pursuing 4K Content?

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Hopper 3 DVR

Dish Network (DISH) has also hopped on the bandwagon of 4K content with its Hopper 3 set-top box. Dish stated on its fiscal 1Q16 earnings call that it has seen “good penetration” of its Hopper 3 set-top box. However, the company also stated, “For the expense and SAC, it is a little bit of a more expensive box. But overall we’re using a higher percentage of remanufactured receivers as a percentage of activations, so the overall equipment cost per activation is down on a year-over-year basis.”

Early this month, Dish also announced the addition of Netflix’s (NFLX) 4K content to its Hopper 3 DVR. Dish launched the Hopper 3 set-top box early this year priced at $15 per month. The Hopper 3 set-top box has a 2 TB (terabyte) hard drive and can record 16 shows simultaneously.

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Why 4K content?

Earlier, 4K television sets were expensive. However, as UHD television prices continue to fall, more people are opting for this option. According to a Quartz report, 4K televisions will make up 57% of total televisions produced globally by 2018. As a result, falling prices of 4K televisions will most likely result in increased demand for 4K content.

This is one of the reasons why companies like Dish and other over-the-top services like Netflix and Amazon Prime Instant Video service (AMZN) are providing 4K content.

Amazon makes up 5.6% of the PowerShares QQQ Trust Series 1 ETF (QQQ). QQQ also has 12% exposure to the Computers sector. QQQ also holds 2.8% of Comcast (CMCSA).

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