In partnering with one of the world's largest media companies, Dish gets the right to provide to its customers -- though it didn't commit to it -- live-streaming of Disney's channels, including ABC and ESPN, as a separate service.
Many pay-TV providers, including Dish, Comcast, DirecTV and Verizon, allow subscribers to stream Hollywood's content -- TV and movies -- on other devices inside and outside the home. But this new deal is the first to raise the possibility of a pay-TV provider using a media company's content, in this case Disney's channels and movies, for a new online service without requiring customers to subscribe to the video portion of their cable or satellite subscription.
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LOS ANGELES (AP) — With a string
of recent deals, cable and satellite providers are beginning to
acknowledge a brutal truth that companies like Hulu and Netflix have
known all along: Many TV viewers, especially young ones, want shows and
movies on their own terms — wherever, whenever and on whatever devices
they choose.
Dish Network took a big step toward such a future with a deal announced Monday with Disney. The agreement opens the way for the satellite TV service to live-stream Disney-owned channels like ESPN and ABC over the Internet to customers' smartphones, tablets, video game consoles and other devices.
The
goal is to attract so-called cord-cutters who have become disenchanted
with large channel packages and rising monthly bills for cable or
satellite service.
Charlie
Ergen, Dish Network Corp. chairman, hinted at the underpinnings of the
deal last month, when he admitted that the traditional pay-TV business
model — charging customers $80 or $100 a month for hundreds of channels,
many of which they never watch — is not appealing to younger people.
"We're losing a whole generation of
individuals who aren't going to buy into that model," he told analysts.
"Obviously you'd like to kind of have your cake and eat it too, and
make sure that you come up with products that can engage that new
generation."
No start date has been announced. Dish will probably have to cut similar deals with other programmers to make such a service attractive.
*** [3/8/14]
This deal gives Dish Network the right to offer a separate, live TV and video-on-demand service that you could only access by streaming over the Internet. According to Bloomberg, Dish Network would be looking to price such an offering at between $20 and $30 a month.
Q: That sounds awesome, where do I sign up?
A: In the famous words of ESPN's Lee Corso, "Not so fast, my friend." There's still a lot that needs to happen before Dish's plans for an Internet streaming network (also known as an "over-the-top" network) can become a reality. For starters, industry analysts think Dish and Disney's contractual agreement likely prevents Dish from launching a streaming network without content from other major players like NBCUniversal, Fox and CBS.
*** [3/8/14]
Mark March 3, 2014, as the day Dish Network and Walt Disney signed the death warrant for the cable industry.
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