Will Showtime On Sling TV Help Dish Network Grow Its Subscriber Base?
As consumers move away from traditional Pay-TV, Dish Network (NASDAQ:DISH) is banking heavily on its streaming service Sling TV to grow revenues. However, competition in this segment is intensifying, with YouTube launching its YouTube TV service and Hulu’s live streaming service likely to be launched soon. For Sling TV to stay ahead of competition in this segment, it is critical for Dish Network to expand the number of channels offered by its streaming service. In order to develop a competitive edge, Dish Network recently added premium network Showtime to Sling TV. This addition makes Sling TV the only streaming service to offer all four of HBO, Cinemax, Starz and Showtime.
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Building A Competitive Edge
As consumer look at cheaper options to watch the channels they want, streaming services are increasingly attracting subscribers. However, this segment is getting intensely competitive and Sling TV needs to develop an edge to attract and retain subscribers. Sling TV is working on a strategy to offer a cheaper basic package with limited channels and single device streaming and offer add-on packages for multi-streaming and additional channels, to allow subscribers to keep costs under control. It has the cheapest bundle on offer among streaming players currently. Below is a quick comparison of TV Streaming services:
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Source: ArsTechnica.Com
While cost is a factor, availability of channels is another driving factor for subscribers in choosing a service. Customers prefer to choose their own channels, so Sling TV’s strategy of offering add-on packages makes strategic sense. Sling TV is including Showtime as a premium offering for $10 a month, which is cheaper than the $10.99 charged by Showtime to its subscribers on a standalone basis. This add-on package will allow subscribers to watch 2,000 on-demand titles along with multiple Showtime channels.
While Dish Network does not report Sling TV subscriber additions separately, this service has been instrumental in containing Dish’s subscriber losses in the past year. Reports suggest that Sling TV crossed the 1 million subscriber mark last year, and it has a head start on other players who are entering the fast-growing market. We believe that while Sling TV appears to have its pricing strategy right, expanding its lineup is critical in driving growth in the long term.
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