uploads///Digitalsmiths Q subscriber trends

How Is Dish’s Sling TV Positioned versus AT&T’s DIRECTV Now?

By

Jan. 2 2017, Updated 9:07 a.m. ET

Sling TV versus DIRECTV Now

Dish Network (DISH) is facing increasing competition from AT&T’s (T) recently launched DIRECTV Now. DIRECTV Now, AT&T’s over-the-top (or OTT) video streaming service, launched in November 2016 and features over 100 channels. AT&T penetrated this market, which includes Verizon’s (VZ) OTT offering, go90.

Dish talked about AT&T’s DIRECTV Now at the company’s fiscal 3Q16 earnings call. Dish stated that it views the DIRECTV Now service as a “bigger bundle” targeted toward traditional pay-TV subscribers. In contrast, Dish’s Sling TV is more of a skinny bundle that gives more flexibility to its subscribers.

Earlier this year, Dish Network unveiled two packages for Sling TV: Sling Orange and Sling Blue. Sling Orange is a basic single-screen package priced at $20, and Sling Blue is a multi-screen package priced at $25 per month. Sling TV subscribers can buy both Sling Orange and Blue for $40 per month.

Article continues below advertisement

The revamped version of Dish’s Sling TV service has given Millennials an option besides SVOD (subscription video on demand) services such as Netflix (NFLX). According to a Digitalsmith 2Q16 video trends report and as the chart above shows, Netflix leads the OTT market with a 54% share, followed by Amazon (AMZN) with 24%.

OTT could be the engine for high EBITDA

Dish Network’s chairman, Charles William Ergen, stated in an earlier earnings call that “OTT has a bright future” and if successful, could very well propel the company to be a “high-growth EBITDA” company. He added that the company views the OTT trend as a “growth opportunity” and it could “grow EBITDA in the linear business, but it would come at the expense of cash flow, so given those choices, we would tend to go more towards cash flow.”

Advertisement

More From Market Realist

  • BioNano Genomics Saphyr system
    Company & Industry Overviews
    BioNano Genomics (BNGO) Stock Looks Like a Buy, Solid Opportunity
  • Delta aircraft
    Company & Industry Overviews
    Delta Air Lines Updates Mandatory Vaccine Policy, Explained
  • AMC advertisement in walkway
    Company & Industry Overviews
    Why It's Time for Most Investors to Sell AMC Entertainment Stock
  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.