DISH Network Corp. (DISH - Free Report) is chalking out plans to boost subscriber addition for its Sling TV service this holiday season. The pay-TV giant has partnered with Wal-Mart Stores Inc. (WMT - Free Report) , Best Buy Co., Inc. (BBY - Free Report) and GameStop Corp. (GME - Free Report) to promote the sale of its Sling TV gift cards, priced in the range of $25 to $100. The gift cards will allow buyers to enjoy up to five months of Sling TV service.
The company is also trying to boost its presence by entering into partnerships with several manufacturers of video streaming devices. Prospective buyers can buy a fourth generation Apple TV $89 and enjoy Sling TV service for three months. Consumers opting for a Roku streaming device can get it for half the price with a purchase of a three-month Sling TV package. Meanwhile, a Roku streaming stick comes free with the purchase.
Over the last couple of years, the internal dynamics of the U.S. pay-TV industry have been gradually shifting from cable and satellite TV operators to low-cost over-the-top service providers. The strong presence of online video streaming providers like Netflix and Hulu are posing significant threat to the existing pay-TV business model. Meanwhile, cord-cutting has become a serious concern for major pay-TV operators. DISH intends to check customer churn with its latest Sling TV offering. However, the fast growing video streaming service industry has attracted telecom giants to this space, which in turn has intensified competition. Moreover, telecom giants like Verizon Communications Inc. have introduced zero-rated plans for their online TV offering, making their offers cheaper than OTT providers. However, with rich content and media in its kitty, as along with the expansion of its service to both Apple TV and Play TV, we believe Sling TV is here to grow.
DISH presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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