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Thursday, March 6, 2014

Disney-Dish to change the way we watch TV...or will it?

Disney-Dish Network pact may alter TV viewing habits

The new distribution agreement, expected to become a blueprint on how the television industry treats digital programming rights, allows for a new wireless TV service.

Walt Disney Co. and satellite TV provider Dish Network's sweeping new agreement could lead to changes in the way consumers watch television.

The comprehensive distribution deal, announced late Monday, is expected to become a blueprint on how the television industry treats the increasingly important digital rights for valuable programming.
Dish secured Internet streaming rights for content from Disney's ESPNESPN2ABC Family and Disney Channel as well as the eight ABC television stations that Disney owns.

The satellite TV company intends to use the Disney programming to build a new nationwide TV service that would be offered over the Internet — bypassing Dish's current delivery system.

Dish has not said when it might launch its planned wireless television service.

"We all know video consumption patterns are changing," Dave Shull, Dish's executive vice president, said Tuesday in an interview. "Some homes are less interested in traditional pay-TV, and we think the opportunity is on the wireless side."

Such a service would create a new business opportunity for Dish, which provides service to 14 million customers. The planned service would be designed to appeal to the so-called never-connected generation of young people, who consume much of their entertainment via computers and tablets, and thus have been difficult recruits for traditional cable and satellite TV providers.

"It would hit a market that they want to reach — single people, young couples — those who don't otherwise subscribe to pay TV," said Michael Nathanson of the Moffett-Nathanson research firm.

Continue reading this story at:,0,7107787.story#ixzz2vCcSvsA2

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