What are some current events in your industry? What is the impact of these events on the industry?
Summary:
Dish Network chairman Charlie Ergen has recently proposed that Dish look to offer online pay-TV services to relieve the cost of only providing broadcast television. The new programming offer would not include sports channels because those are the most expensive to provide (50 percent of what customers pay goes toward delivering sports channels, while sports make up only about 20 percent of what they view).
Dish also reported that more customers have left the company, leaving about 13.9 million subscribers as of the end of September. DirecTV brags a larger customer base, having experienced its best third quarter growth since 2004. However, Dish's stock has gone up $0.71, and the company a 12 percent increase in revenue.
Analysis:
I find it interesting that Dish Network is looking into online TV options--especially because our group has been looking at companies that stream TV and movies online. Dish's foray into this mode of TV providing is particularly fascinating because Dish owns Blockbuster, the company that declared bankruptcy after being beat out by Netflix, a company that has just recently begun to offer online TV/movie options. Is Dish trying to curb the costs of providing sports channels to its customers...or is it trying to compete with Netflix, Hulu, Amazon Prime, and the other companies beginning to use the internet to deliver untraditional entertainment? Are they providing services so similar that price will be the only factor in consumers' decisions?
Source:
http://online.wsj.com/article/SB10001424052970204190704577024023586817992.html
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