Sling TV from Dish Network is facing tight competition from new OTT services. AT&T has declared that they are planning to start three new over the top services, namely DirecTV Now, DirecTV Preview, and DirecTV Mobile. As per the recent reports, the market that AT&T targets for their OTT services is likely to expand in the medium term.
It is rumored that the non-pay TV households in the US will expand from 20.8 million users in 2015 to 28.1 million users in the year 2019. Experts say that the increase in the numbers will put much pressure on the wireless network capacity of AT&T, but the telecom company is positive that they can handle it.
Roger Lynch, CEO of Sling TV said, “On DIRECTV Now…we obviously have always expected that we’re going to see more competition. I’ve been a little surprised that it’s taken this long for anyone to really launch. My expectation is that as new entrants enter this market, we’re just going to see faster growth over the top. Obviously, it’ll affect the market share that we have right now, but I don’t expect that it’s going to materially affect the growth of our business.”
Lynch seems confident that with the increase in over the top service providers, there will be increased competition and it will affect the market share of various service providers. However, he is also positive that the competition between the service providers will not affect the growth of their business. It is true that Dish Network earns majority of their revenue from pay-TV services and targeted advertising.
Dish has even made a joint venture with AT&T to make use of the targeted advertising technology in political advertising market. Charlie Ergen, chairman and CEO of Dish Network, said that they are very much encouraged by the joint venture with AT&T as the presidential elections are to be held now.
“Certainly combining advertising resources and utilizing the number of DVRs and addressable technology is certainly a place that could be growth for both companies. And the other big thing is the backhaul…We’re the only two companies that really have connected to all the broadcasters in the United States. And that’s a redundant network for both of us, and obviously that could be shared particularly since AT&T has a lot of backhaul resources themselves,” Ergen said.