Dish Network Corp was upgraded by Zach investment Research recently from Zacks Rank #4 (Sell rating) to Zacks Rank #3 (Hold rating). When its core pay TV business started to suffer due to cord cutting, Dish started concentrating on the expansion of Sling TV, its internet TV service, consequently gaining the market trust once again.
According to Zacks, “Dish Network reported strong first-quarter of 2016 results with in-line revenues and better-than-expected earnings. An extensive wireless spectrum portfolio, innovative product launches and improved ARPU are likely to spur growth at the company. Moreover, launch of Dish Network’s Internet TV service, Sling TV, is a major positive as foraying into the Internet TV sphere may help the company minimize losses incurred in the legacy pay-TV business.”
“Dish’s Sling TV offering is now boosted with addition of more Viacom’s channels. DISH Network is also poised to benefit from rising expenditures of the broadcasting companies in the digital advertisement space. However, a rise in cord-cutting, a high churn rate and escalating programming expenses are concerns,” the company added.
Sling TV provides a wide variety of channels like ESPN and Disney. Dish recently launched Sling TV app for Apple TV platform, and is looking forward to the Android app market as well. Twenty new channels from Viacom Inc were also added to Sling TV a couple of weeks ago.
Sling TV does not need extra hardware installation or a contract. The steaming service is supported by Android, iOS, and Roku devices. Sling TV packages are available from a price as low as $20 per month.
With the increasing demand in the digital advertisement industry, media companies have joined into the pool to provide data-driven target audience-based advertising. Dish Network is planning to benefit this by broadcasting companies in the digital advertisement space. The main advantage of Dish is that it offers both internet TV service and pay-TV.
Currently Sling TV is available only in metropolitan cities that have access to high-speed broadband. Dish TV failed to get a deal with wireless operators to provide wireless network nationwide, and as a result, the geographical reach of Sling TV is limited. However, Dish Network is planning to address that soon.