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10 Nov

Can Sling TV Survive The Upcoming Competition

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Dish Network’s online streaming platform, Sling TV, has done exceptionally well over the last few months. The online streaming service from the cable provider was able to draw in more customers to their offerings due to the amazing service and quality contents they offer at an affordable price. However, Sling TV will face severe competition in the near future, as Hulu, YouTube and DirecTV will all be launching their virtual pay-TV services in the upcoming months.

Analysts have assumed that Sling TV might not be able to cope with the upcoming challenges and they might loss plenty of their subscribers. Frost & Sullivan analyst, Dan Rayburn, said in a recent interview, “Is the market big enough for all these services? The answer is no. They are all targeting the same audience, offering the same channels, and there just isn’t enough room for more than four players.”

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Sling TV Faces Threat

An analyst at the Macquarie Capital USA Inc., Amy Yong, firmly believes that the technical issues Sling TV has experienced in the past will limit their competitiveness in the market. Sling TV had experienced technical issues during the broadcast of highly watched TV contents such as HBO’s fantasy drama TV series Game of Thrones.

“While the others were still taking their time to get it right, Dish rushed Sling to the market ahead of everyone. One thing about TV consumers, they aren’t very forgiving, particularly when they can get service,” Yong said. However, it has to be noted that Sling TV was able to secure approximately 1 million subscribers since its launch in February 2015.

The basic package offered by the online streaming platform during the launch was available at $20 a month and it offered some of the most popular channels including AMC, TNT, and ESPN. In the next few months, Sling was able to add FOX, NBC, ABC, and many other regional sports networks to their offerings. Roger Lynch, the CEO of Sling TV said, “At some point, there will be too many entrants and eventually a shakeout of the weaker ones. We feel confident we will come out OK.”

However, Tony Goncalves, senior VP of strategy and business development for AT&T Entertainment Group, said, “We believe there’s a market of approximately 20 million households who currently do not subscribe to pay-TV. It’s not only younger consumers. We’re looking to attract both cord-nevers and cord-cutters — those who want more choice and flexibility to access a premium content bundle more tailored to their lifestyle.”

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