Dish Network Corp unveiled on Monday its long-awaited online video service targeted at younger viewers who are not keen on paying for big cable packages.
The service will be launched nationwide during the first quarter of 2015 and it will provide a mix of live TV and video-on-demand content. Access to Sling TV is priced at $20 a month and the service will not require a contract or any additional hardware.
However, the application would not be available to consumers who are currently subscribed to Dish.
“Sling TV provides a viable alternative for live television to the millennial audience,” said CEO Joseph Clayton. “This service gives millions of consumers a new consideration for pay-TV. Sling TV fills a void for an underserved audience.”
Dish said that the service is expected to be supported by Amazon Fire TV, Roku, Xbox One, selected LG and Samsung smart TVs and of course, iOS, Android, Mac and PC. Sling TVs core package will include ESPN, TNT, Food Network, Cartoon Network, Disney Channel, ABC Family, CNN among others.
However, users may customize their packages with different add-ons, initially Dish will offer a “Kids Extra” and “News & Info Extra” add-ons, with “Sports Extra” on its way. Customer who would like to upgrade their package can do so by paying an additional $5 a month.
Sling TV will also enable access to web videos created by Maker Studios, one of the largest network of channels on YouTube.
Mr. Clayton said in an interview that the company was evaluating the idea of a video streaming service for the past several years, as its core satellite TV business is maturing.
Dish has to find a way to reach the 18 to 35 year-old demographic, while also preventing its current pay-TV subscribers from switching to the streaming service.
Dish said its customer base decreased by 12 000 during the third quarter to around 14 million, which ranks the company as the second biggest U.S. satellite TV provider.
The company also outlined that Sling TV is not connected to Foster City, California-based Sling Media and its famous multi-screen device Sling Box.
Dish Network Corp lost 2.53% on Monday to close at $70.44 on NASDAQ. At 14:31 GMT on Tuesday the stock was 0.11% up and trading at $70.52, marking a one-year increase of 21.83%. The company is valued at $32.51 billion. According to the Financial Times, the 20 analysts offering 12 month price targets for Dish Network Corp have a median target of $72.50, with a high estimate of $102.00 and a low estimate of $49.00. The median estimate represents a 2.92% increase from the last close price of $70.44.