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18 Nov

Analysts Claim That Sling TV Is Not Making Huge Profits

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More than a few analysts from all over the country firmly believe that Dish Network might have been in a far worse state, if their online streaming service Sling TV had failed to perform. However, Dan Rayburn, Streaming Media analyst seems to disagree with this fact and he has his own take on this topic.

In a recent interview, Rayburn said that Dish Network is not doing enough to solve the chronic technical problems experienced by Sling TV. He also added that Sling TV doesn’t have as many as subscribers as other analysts assume. “If Sling wasn’t owned by Dish, it would already be out of business. It’s not profitable,” Rayburn said in a statement.

As per Rayburn, Sling TV has only managed to attract approximately 600,000 to 700,000 subscribers to their offerings. However, many other analysts, including Deutsche Bank’s Bryan Kraft, have estimated the total number of Sling TV subscribers to be around 1 million.

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Rayburn also noted that both HBO and CBS Corp have announced that their SVOD services have hit the 1 million-subscriber mark, where Dish Network is still refusing to disclose their total number of Sling TV subscribers. “If their number was a million or two million, they’d be out there talking about their numbers,” Rayburn said.

When asked about the decreasing Content Delivery Network (CDN) prices, which were recently touted by Dish Network Chairman and CEO, Charlie Ergen, during their third-quarter earnings call, Rayburn admitted that the CDN pricing have dropped to a fraction of what it was five years ago. However, he added that, “It’s not immaterial, but it is not a cost that we worry about because the costs have continued to come down so significantly.”

Rayburn also asked that why Dish is not doing more to fix the ongoing streaming issues of Sling TV, if the costs are in control. “Sling’s vendors talk to me off the record, and they make it clear that Sling TV has some very interesting concepts on how streaming should work. And those concepts don’t work very well,” he said.

“There are people like Twitch that are pumping out a lot more traffic than Sling TV who are getting it right. Live streaming is complex, but it’s not hard. The NFL does it. Major League Baseball does it. And nobody was complaining about the streaming of the Olympics.”

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