Dish Network, DirecTV to Challenge Netflix with New Streaming Video Services
By Paul Burress | May 13, 2011
[Satellite News 05-13-11] U.S. pay-TV satellite operators Dish Network and DirecTV are launching new video services to bring a fresh range of entertainment options to consumer markets. While both companies are adopting plans to remain competitive against each other, the new offerings also aim to challenge the Web-based streaming services that have siphoned younger customers from terrestrial cable companies during the past few years.
Following delays due to disputes between Hollywood studios and theater chain owners, both sides reached an agreement allowing DirecTV to launch its long-awaited Home Premiere video-on-demand service which will provide subscribers with movies released just weeks after they premiere in theaters.
Direct TV Spokesman Robert Mercer told Satellite News that DirecTV’s Home Premiere video-on-demand service will complement their existing DirecTV Cinema platform and outlined the details of how the content will be formatted.
“The four studios involved are Universal Pictures, Sony Picture Home Entertainment, 20th Century Fox and Warner Bros Home Entertainment. The agreement was with the studios and we were able to launch first because we are currently the only pay TV distributor that has created watermarking technology approved by the studios to prevent the misuse of these titles during the early window,” Mercer said. “We’ll take the movie titles as they are made available to us by the studios. The movies are all in 1080p and Dolby 5.1 and customers who purchase Home Premiere titles can view them multiple times over a 48-hour period. The service is available only to customers who have our DirecTV HD-DVR.”
Dish Network is taking a slightly different approach with the company’s recent acquisition of Blockbuster. In April, Dish Network announced that the purchase of Blockbuster was primarily for its video-on-demand service to augment Dish Network’s own satellite-TV offering. The pay-TV broadcaster also announced plans to utilize Blockbuster locations to cross-sell its satellite services.
Dish Network Spokesman Marc Lumpkin told Satellite News that the company is assessing opportunities to continue the stand-alone services of the Blockbuster brand while trying to incorporate portions of Blockbuster’s branding and services for Dish Network. “We’re still evaluating the leases for the 1,700 stores that we assumed. But it’s ultimately up to the [movie] studios on whether the stores will continue. We see value, but it depends if the studios see value in the physical distribution,” Lumpkin said.
Both Dish Network and DirecTV feel their respective on-demand offerings have an appeal for consumers affected by the economy or are looking for more affordable video entertainment alternatives.
Lumpkin said Dish Network’s Sling capabilities would allow customers to view their local TV channels as well as TV and DVR content via their iPad or PC.
“We believe there are all types of consumers and we now have a product that meets every need, whether a customer who is seeking a high-definition DVR satellite receiver with 3-D and Sling capabilities or a customer who wants to visit a video store and rent a DVD or (video) game,” Lumpkin explained.
Mercer noted that DirecTV is making more non-traditional content available to appeal to younger viewers such as free YouTube videos streamed directly to the customer’s TV, streaming movie trailers and providing social networking apps like Facebook and Twitter.
“Our new ‘Social TV’ app lets a customer see what his or her friends are watching and they can directly tune to that show or rate the show they are watching via a Twitter feed,” Mercer noted. “As the video landscape changes we are offering our customers more ways to watch video beyond linear TV. Making available a multi-screen experience for our customers is an area of major focus for us and with the explosive growth of tablet devices and smart phones we see a tremendous opportunity to provide services to customers who want to complement their traditional TV viewing experience.”
Mercer added that DirecTV is using the Home Premiere to launch a competitive campaign against Netflix, since consumers will no longer have to wait until DVD/Blu-Ray distribution to see select new releases. “(Home Premiere) is a service any DirecTV customer who has an HD-DVR can take advantage of. The Home Premiere service itself is not bundled. A customer who has a service bundle through DirecTV and any one of its telco partners will have access to the Home Premiere service as part of their DirecTV subscription,” Mercer said
Dish Network also is taking to the Web with its offering through DISHonline.com — a website that allows subscribers to view content from Hulu or rent movies if they have selected premium movie services such as HBO or Epix. “We’re positioned to remain attractive as a solution for young consumers and all other ages alike,” Lumpkin said.