DISH Network Corp. (DISH - Free Report) , the second largest satellite TV operator in the U.S., is currently exploring its opportunities in the over-the-top TV streaming segment. In its recent report, Bloomberg stated that the company is negotiating with several media companies, including Viacom Inc. (VIAB - Free Report) , Scripps Networks Interactive Inc. and Univision Communications Inc. regarding online TV services.
Offering online TV services will transform DISH Network as a virtual MSO that will broadcast pay-TV services for several devices including TV, smartphones and tablets. DISH Network’s technology spin-off EchoStar Corp. (SATS - Free Report) has developed an adaptive bit rate (ABR) video platform, which will enable DISH Network to offer over-the-top services. Currently, DISH Network uses EchoStar’s satellites and equipments to provide TV services.
Using EchoStar’s ABR platform, DISH Network can provide a managed, over-the-top video service supporting live TV streaming, on-demand movies, and a network-based DVR. DISH Network can also offer movies from its Blockbuster stores for over-the-top streaming services.
Just a few days ago, DISH Network started offering bundled satellite TV and Internet services to its customers and became a formidable challenger to large cable pay-TV and telecom service providers, which also offers triple-play video, voice and data services. Moreover, DISH Network is currently waiting for the FCC nod to launch a nationwide high-speed wireless broadband network to offer mobile Internet and phone services to its customers.
The newly acquired spectrums from TerreStar Networks Inc. and DBSD North America Inc. provide most valuable assets to the wireless industry. Using these slots of airwaves, the company can form a formidable video-on-demand service over a wireless network of mobile handsets, such as smartphones and tablets.