DISH Network Corp (DISH - Free Report) recently added the Amazon (AMZN - Free Report) prime video app on Hopper 3, its award-winning DVR.
This will allow Hopper 3 customers to stream Amazon Originals like Tom Clancy's Jack Ryan and The Boys on the same platform as their DISH TV programming.
Hopper 3 customers will be able to access the Prime Video app via the app menu or the DISH voice remote. Moreover, Amazon’s 4K content is now available to all Hopper 3 customers with a 4K TV.
New Content to Strengthen Hopper 3 Offerings
The addition of Amazon Prime is a significant boost to DISH’s catalog of integrated streaming options, which already includes Netflix (NFLX - Free Report) and Alphabet’s (GOOGL - Free Report) YouTube and YouTube Kids.
It is also in line with DISH’s focus on gradually improving the value of Hopper platform in order to provide greater satisfaction to its customers.
The company has already rolled out a software update on Hopper that allows customers to access Google Assistant via DISH voice remote. It also launched a new Google-branded voice remote to complement this new integration.
Intense Competition to Hurt Growth
DISH’s focus on providing quality service is expected to help it acquire and retain more subscribers in the long term.
Notably, in September 2019, the company was ranked #1 in Overall Customer Satisfaction for the second year in a row in the U.S. Television Service Provider Satisfaction Study by J.D. Power.
Nevertheless, increasing programming and content expenses as well as higher retransmission fees are likely to hurt DISH’s overall profitability.
Further, the company is facing stiff competition in Pay TV market, which per IndustryArc data, quoted by Market Watch is expected to witness CAGR of 3.6% between 2019 and 2025, generating global revenues of $267.27 billion by the end of 2025.
The Pay TV market is currently dominated by AT&T Premium TV and Comcast. Per Statista, both AT&T and Comcast had 20.42 million Pay TV subscribers each as of the end of November 2019, whereas DISH was at the third place with a subscriber count of 9.49 million.
Further increasing cord-cutting due to higher adoption of subscription-based video on demand services like Netflix, Apple TV+ and Disney+ is expected to continue to negatively impact DISH’s subscriber base.
DISH currently 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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