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DISH Offers SMARTbox Solution

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Targeting the hotel business, DISH Network Corp. (DISH) – the second-largest satellite TV operator in the U.S. – launched the SMARTbox solution for hotel operations.

SMARTbox solution will enhance the TV viewing experience of the hotel guests by offering nearly 96 HD channels.

The hotel owners will be hugely benefited by the new service as it will lead to a lower cost of maintenance by reducing 93% rack space. The owners can deliver both HD and SD video content through the same device, thereby slashing power usage by 90%.

DISH Network reported dismal results for the first quarter of 2013, with both the top and the bottom line missing the Zacks Consensus Estimate. Quarterly total revenue was approximately $3,555.2 million, down 0.7% year over year. However, subscriber churn rate fell to 1.47% compared with 1.35% in the prior-year quarter.

The new Internet video streaming companies like Netflix, Inc. (NFLX), Hulu and YouTube have become major threats to the overall pay-TV industry as these offer videos at economical rates. Moreover, the highly saturated U.S. pay-TV market coupled with increased popularity of the triple-play service plan offered by carriers like AT&T, Inc. (T) and Verizon Wireless, will continue to impact DISH Network’s profitability going forward.

Hence, to counter such threats as well as to boost revenues, DISH Network continues to explore new revenue streams.  A few days back, the company also teamed up with NTELOS Holdings Corp. (NTLS) to offer fixed wireless broadband service across rural Virginia. Thus, we believe that such strategic steps taken by the company will likely improve its future profitability.

Currently, DISH Network carries a Zacks Rank #3 (Hold).

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