& cplSiteName &

No Mickey Mouse Deal for Dish

Alan Breznick
3/4/2014
50%
50%

With just a couple of pen strokes, the Walt Disney Co. and Dish Network have altered the landscape for the streaming of traditional TV programming to multiple screens inside and outside the home.

Walt Disney Co. (NYSE: DIS) and Dish Network LLC (Nasdaq: DISH) announced a landmark pact Monday night that will allow Dish to become the first US pay-TV provider to stream ESPN, Disney Channel, ABC, ABC Family, and other popular Disney-owned networks to broadband subscribers. Thus, the deal enables Dish, the third-largest pay-TV provider in the US, to establish its own, over-the-top (OTT) video subscription service that could potentially compete with conventional pay-TV services.

As spelled out in the Disney press release announcing the agreement, the deal "grants Dish rights to stream cleared linear and video-on-demand content from the ABC-owned broadcast stations, ABC Family, Disney Channel, ESPN, and ESPN2 as part of an Internet-delivered, IP-based multichannel offering." Further, "Dish customers will be able to access Disney's authenticated live and video-on-demand products, including WatchESPN, WATCH Disney, WATCH ABC Family, and WATCH ABC using Internet devices in the house and on the go."

While Dish officials have not spelled out when they will launch such an OTT service, they are clearly working on it. On the company's fourth earnings call with financial analysts late last month, Dish Chairman Charlie Ergen said the company is also negotiating with other major programmers for multiscreen streaming rights so it can go OTT. "When they're ready, we'll be ready," Ergen said.

In a note to clients Tuesday morning, Craig Moffett, a principal and senior analyst for MoffettNathanson, said it appears that a Disney-Dish OTT service would initially target just the 5 million to 10 million US broadband homes that don't subscribe to a traditional pay-TV service. That way, he said, Dish would deliver Disney content to more homes without cannibalizing Disney's huge cable, satellite, and telco TV customer base. "As we have heard in our prior discussions with other OTT startups, content owners have been focused on creating bundled structures that limit the risk of a la carte disintermediation," Moffett wrote.

Even if that's so initially, though, the genie will be firmly out of the bottle. Once such an OTT service gets off the ground, it will be difficult, if not impossible, for Dish and Disney to restrict it to just broadband-only subscribers. Plus, there would be nothing stopping existing pay-TV subscribers from simply cutting the video cord and then opting for the broadband video bundle instead.

The ground-breaking deal between Dish and Disney also sets the stage for Disney to strike similar multiscreen streaming deals with other major service providers, such as Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), DirecTV Group Inc. (NYSE: DTV), Verizon Communications Inc. (NYSE: VZ), and AT&T Inc. (NYSE: T). Several of those provides have already indicated interest in going OTT at some point, especially Verizon with its recent purchase of Intel Media's OnCue cloud TV platform. (See Verizon Snatches Intel Media Assets.)

None of those providers may have the exact same leverage as Dish, which has been battling with Disney for months over the AutoHop ad-skipping feature of the satellite TV provider's Hopper DVR. In return for the OTT rights to the Disney channels, Dish agreed to disable the AutoHop functions for ABC content within The Nielsen Co. 's three-day TV ratings window. In turn, Disney agreed to drop its lawsuits over AutoHop. (See DISH Upgrades Hopper Software.)

But, like Dish, the other major pay-TV providers should still have plenty of clout in their negotiations because Disney is also seeking to gain greater carriage of some of its younger networks, especially its latest college sports networks, SEC ESPN Network. In the deal with Dish, for example, Disney won satellite TV carriage of such newer digital channels as Disney Junior, Fusion, ESPN Goal Line, ESPN Buzzer Beater, Longhorn Network, and the soon-to-be-launched SEC ESPN Network.

Likewise, the Dish-Disney deal clears the way for other major programmers to strike streaming pacts with the big pay-TV providers. Although several programmers have already moved in that direction, others have held off, fearful of cannibalizing their existing pay-TV customer bases.

So it's no longer a question of whether pay-TV providers and programmers will go over-the-top. The real questions are who will go first and how soon. And the answer to the first question appears to be Dish Network.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
3/6/2014 | 12:47:48 PM
No Mickey Mouse Deal for Dish
@albeznick, that would be interesting; they are certainly in a position to move that way.  They have several moves they can make to increase their market position - all favorable as I see it.

DHagar
albreznick
50%
50%
albreznick,
User Rank: Blogger
3/5/2014 | 9:42:21 PM
Re: No Mickey Mouse Deal for Dish
OK. So to me the big question is whether Dish will take this budding OTT service nationwide and actually compete with its own satellite TV service, as well as all other traditional pay TV providers. Wouldn't it be fun to see Charlie Ergen compete with himself? 
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
3/5/2014 | 12:10:33 PM
No Mickey Mouse Deal for Dish
@kq4ym, interesting question.  I vote that it is that they are taking this road to retain customers plus attract the untapped market of customers not paying for TV.

DHagar
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
3/5/2014 | 10:55:13 AM
Re: No Mickey Mouse Deal for Dish
One might wonder is the Disney/Dish deal was just a way to settle the lawsuit over Dish equipments ability to scrub commercials. Or, a way to allow Dish to gain or reatain customers who might be thinking of cutting the cable. But, unless a new tech overruns streaming content, the probable future of enterainment programming, the cable/satellite companies have to be alert to find ways to maintian their high profit margins.
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
3/4/2014 | 10:41:44 PM
No Mickey Mouse Deal for Dish
@MikeP688 - Exactly, This Disney/Dish deal changes the context and level of competition.  I believe they will set a higher standard of options and the bundled combination will be highly attractive.  This could be a win/win for everyone.  While Comcast is focusing on dominating, this appears to be a new model of offerings.

DHagar
MikeP688
50%
50%
MikeP688,
User Rank: Light Sabre
3/4/2014 | 8:57:56 PM
..and Dish will have the bandwith to deal with it...:-)
Dish swept all the latest wireless spectrum access which will give it further capabilities as it broadens its reach and creates the alternatives,  I have to wonder how  the new "Comcast/TWC" juggernaut emerging will deal with this challenge. 
More Blogs from Breznick Unbound
Light Reading and SCTE/ISBE are teaming up again to create multimedia content aimed at helping cable operators cut energy use and costs.
In a questionable call, the cable trade group is planning to hold its INTX show next year at the same time as NAB's big trade show in Las Vegas.
Light Reading and NCTC are teaming up to create and market webinars, video interviews and other multimedia content for smaller and independent cable operators.
Now that Sony has launched a 4K movie streaming service and AT&T/DirecTV is broadcasting golf and baseball action in UHD, is 4K video ready to go prime time?
Did CableLabs jump the gun by announcing its Full Duplex DOCSIS 3.1 initiative so early? Some senior cable technologists think so, and so do I.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Between the CEOs
CEO Chat: UXP Systems' Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Google Fiber Can't Be Called a Failure
Carol Wilson, Editor-at-large, 8/26/2016
FirstNet: A Billion-Dollar Boondoggle?
Dan Jones, Mobile Editor, 8/26/2016
WiCipedia: Should Men Be Included? & Olympians Face Discrimination
Eryn Leavens, Special Features & Copy Editor, 8/26/2016
How the Padres Hit an IoT Home Run
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/25/2016
Google Fiber Downsizing Not Confirmed
Mari Silbey, Senior Editor, Cable/Video, 8/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.