Sling TV Debuts on Microsoft's (MSFT) Xbox One Console - Analyst Blog
Software developer Microsoft Corporation MSFT announced that Internet TV service, Sling TV is now available on its gaming console, Xbox One making it the first game console to support Sling TV's live service. The app and its free trial are now available through the gaming console.
What Does the Partnership Offer?
With this partnership, existing Xbox Live members with the next-generation machine will get one month of free Sling TV service. Also, the first 5,000 new buyers of the console from Microsoft retail stores or online between Mar 17 and Mar 22 will get three months of free Sling service.
The partnership will now offer Xbox One users with entertainment content. Users can download Sling TV from the Xbox One Apps Store and then connect it to their Xbox One home screen by signing in with Sling credentials. They can also use Kinect voice or gesture controls along with the “Snap” feature to navigate and carry on several activities at the same time.
Snap basically helps users to multitask. When the users “snap” an app, it is moved to one side of the screen and will continue to run while the user can do something else on the main part of the screen. For instance, a user can ‘’snap ‘’a game to watch a video simultaneously.
The app also includes a “three day replay” feature that will enable users to watch shows that have been aired in the past three days.
What is Sling TV?
In February, DISH Network Corp. DISH commercially launched its Internet TV service called “Sling TV” throughout the U.S. With this, the second largest satellite TV operator in the U.S. forayed into the over-the-top video delivery market. Unlike conventional cable plans, Sling TV doesn't need a contract or extra hardware installation.
The service is supported by iOS, Android and Roku devices and is available at an exceptionally low price ($20 per month to start) along with accessibility to some top-rated TV channels such as ESPN of The Walt Disney Co. DIS, AMC, TNT, TBS, Food Network, HGTV. Customers can also access add-on packages consisting of additional sports, movie, kids or news channels for an additional $5 per month. A&E, History, H2 and Lifetime will be added to the service by the end of the month.
Internet TV
Internet TV is gradually gaining traction in the U.S. Of late, the legacy pay-TV industry in the country has been facing severe competition from online video streaming service providers. The low-cost of over-the-top video streaming services has resulted in massive cord cutting that is currently threatening the pay-TV business model. Internet TV has emerged as a strong alternative to counter this competitive threat.
Other big tech companies offering this category of service are Verizon Communications Inc. VZ and AT&T Inc. T. Even Apple AAPL is expected to join the league.
All these services may become a game-changer for the pay-TV industry while posing a significant threat to cable MSOs (multi-service operators).
Our Take
Microsoft has been taking necessary steps to increase the sales of its gaming console which has played second fiddle to Sony Corp.‘s SNE PlayStation 4 (PS4) since its launch in Nov 2013.
The software developer earlier resorted to price cuts and promos, which subsequently led to stronger sales of the console and also effectively challenged the PS4. With the latest move, it has stepped ahead of Sony, which is also set to launch its Internet TV offering called “Playstation Vue” across the United States this year.
In fact, Xbox sales are not only threatened by PS4 sales but also by social games. The emergence of mobile platforms such as smartphones and tablets from companies like Apple, Samsung and others remain headwinds for video game hardware sales. Video game publishers are now required to make games that are compatible with these devices.
Microsoft has a Zacks Rank #4 (Sell).
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