The future of cable TV networks has been thrown into further disarray after DISH Network Corp (NASDAQ:DISH) announced plans to unveil its first major TV online service. Bloomberg’s, Paul Sweeney, believes the latest push by Dish is a key concern for the entire media ecosystem which has over the years relied on the success of the bundle that is slowly being phased out.
DISH Network Corp (NASDAQ:DISH) is looking to tap into an increasing number of people who don’t want to pay high subscriptions fees on cable networks with a $20 a month set that offers 12 channels. The new set is poised to offer live feeds on sports, news and scripted shows.
“Now the question is, is that bundle at risk? And is there, in fact, a real market out there of consumers that want to pay a much lower price point for fewer channels. Dish is throwing out a channel line-up out here that interestingly does include ESPN and want to see if the market is out there in terms of demand,” said Mr. Sweeney
The inclusion of ESPN on the service is sure to be enticing for sports fanatics who have always been forced to pay high subscription fees to satellite and cable networks all in the name of accessing the one channel. The rapid move towards mobile and people preferring to watch content online has been one of the most disruptive feature that has affected cable networks.
Sweeney believes big media companies will have to rethink their business model in terms of content that is put online as well as the one offered through the bundle if they are to compete against the likes of DISH Network Corp (NASDAQ:DISH). Media companies will have to change the way they operate as more people continue to prefer being accorded the opportunity of watching content while on the go especially on the internet.
“The fine line that these big media companies walk is how they protect their existing ecosystem where they are, in fact, getting $80-100 a month. While the same time recognizing that a big part of their consumer base, their subscriber base is getting content outside of the package online,” said Mr. Sweeney.
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