Cheaper Dish in the future?!?!?!?!?

bigjohnok

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Apr 27, 2014
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Heard during the Dish Networks earnings call
Aug 6 2014, 14:15 ET
  • Dish Networks (DISH +1.9%) CEO Charlie Ergen concedes during the firm's earnings call that the pay-TV business appears to be in a secular decline.
  • Over-the-top offerings at a lower price point could be the future, he notes.
  • Ergen is more excited about wireless. He says there's plenty of potential for the company to benefit by partnering with Sprint. A bid for T-Mobile by Dish is described as a "maybe" by the exec.
  • Another interesting comment is his contention that a merger of Dish and DirecTV wouldn't makes sense for Dish shareholders due to valuation.
  • Earnings call webcast
http://seekingalpha.com/news/1907125-heard-during-the-dish-networks-earnings-call#email_link
 
Anyone who believes that television programming will lower in price in the future might also wish for $3 T-bone steak. Ain't gonna happen.
 
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Oh yeah, I kind of blocked out the Over-the-Top part of that sentence.

I was wondering why they're gonna call the online offerings 'Over-The-Top'?

And I was also wondering how long the big ISP's are gonna let Charlie deliver his programming over their networks with for free. I'm guessing not very long. :)
 
2 words Cord Cutters.
I actually know more people who dont have paid for tv especially in my generational age group and younger..
Take advantage while you can.

Cord cutters are largely subsidized by the corded currently. The OTT type providers are still in the maximize share stages of a new market, charging as little as possible, and probably getting better deals on content than the cable/sat companies.

Consolidation in OTT providers will happen, they will have their own contract renewal problems. It will most likely be better than today, but average prices will equalize, probably closer to today's average corded prices than the current Netflix + Hulu + OTA levels. Luckily we have years for it to all play out though.
 
Take advantage while you can.

Cord cutters are largely subsidized by the corded currently. The OTT type providers are still in the maximize share stages of a new market, charging as little as possible, and probably getting better deals on content than the cable/sat companies.

Consolidation in OTT providers will happen, they will have their own contract renewal problems. It will most likely be better than today, but average prices will equalize, probably closer to today's average corded prices than the current Netflix + Hulu + OTA levels. Luckily we have years for it to all play out though.
before I worked for dish I was a cord cutter, all you need is the internet and know where to look.
many nations do not recognize nor honor US copyright laws.
 
The c- band glory days have better odds at making a come back then OTA going anywhere
But most cord cutters won't be OTA users. They will be Hulu+/Netflix/etc streaming users. OTA will be around but be less and less relevant. As users grow more accustomed to on demand content, the concept of a scheduled show, or recording a scheduled show, will be more and more foreign.
 
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And as that happens more and more, your internet costs are going to rise, appreciably, so you'll be the same either way...
 
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I was wondering why they're gonna call the online offerings 'Over-The-Top'?

And I was also wondering how long the big ISP's are gonna let Charlie deliver his programming over their networks with for free. I'm guessing not very long. :)
"Over The Top" or "OTT" is an industry term referring to content services such as Netflix or just about any of the "channels" on a Roku such as CNET, TwitTV, and all of them often acceable via the internet using a connected device like a Roku, WD Live, PS3 or PS4, or a Smart TV, etc. beyond the traditional MVPD (Multi-channel Video Program Distributor, which includes all cable and DBS sat services, while MSO refers to cable companies only) model. Lots more acronyms out there. Those are just a few.

As far as letting ANYONE stream for free, there is more to this than the ISP, who could wake the sleeping giant name Congress if they really try to start charging for access, and COMCAST may have to agree to never do this if they want to merge with TWC, right now such talk is focused exclusively on Netflix because of the incredible traffic they have. No one else even comes close and have nor worries just yet. There is more involved than just the ISP, the backbone providers may want to charge, NOT necessarily the ISP's. Then there is the argument that since it is Netflix creating all this traffic and its increased cost or problems for the system, some say it should be Netflix to pay for improvements, but they that does bring up the notion of destroying "Net Neutrality."

It depends upon who is going to pay to accommodate all this new traffic, even if the only point of congestion is the edge routers, which seem to be an ISP cost, but could end up being a backbone provider cost if it comes to that.

We will see increased internet access rates either way, unfortunately, because they always pass the cost to the consumer, although edge routers and connecting them are chump change to all the companies involved. And yes, it will take a few years, but we will see OTT services having to greatly raise their rates to pay for the content. Netflix has already lost Viacom content, especially upsetting to parents and their kids, while trying to replace it with lame kids stuff.
 
Netflix felt it once. I forget which company they lost for awhile(I want to say Disney but it could have been Starz), and they lost a huge amount of subscribers. When the companies recognize the real threat, you will see your bills go up, and then you will see people that can only afford to subscribe to justs netflix, or just hulu plus, and then then the same complaints. "Netflix has this I don't see why Hulu doesn't... I'm paying so much a month. Give me what I want now". This is inevitable.
 
Also if that doesn't happen, you will see a significant drop in quality in programming because they won't have the high retrans fees they charge to pay for their props and actors. There has to be a loss somewhere.
 

May Come Back to Dish

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