Sling TV Shows Signs of Huge Growth Even as DISH Network Stock Falls

Sling TV Shows Signs of Huge Growth Even as DISH Network Stock Falls

As DISH Network Corporationâ€s stock continues to decline, Sling TV is increasingly foreseen as the means to turn the corporationâ€s stock around. Previously trading at $60 around this time last year, DISH is now trading under $40 as it suffers from a steadily decreasing subscriber base.

DISH Network hasnâ€t been the only one bearing the brunt of the emergence of over-the-top (OTT) service providers in the industry. The entire pay TV industry is enduring the gradual loss of revenue due to the swiftly growing cord-cutting population. OTT streaming services, most notably Netflix, are undoubtedly responsible for this rising trend. Traditional pay TV providers are now responding by slimming cable packages and by presenting them Netflix-style.

The good news for DISH is that as of now, Sling TV is showing signs of continuous growth over the next several years. Although originally not intended to be a replacement for traditional pay TV, Sling TV is now considered a direct replacement for satellite and cable TV. It is one of the front-runners in the OTT service industry today and currently has 2.2 million subscribers. InvestorPlace has forecasted that Sling TV will continue to thrive, thanks to its competitively priced bundle offering OTT service with other popular cable channels, particularly live sporting events and news channels.

However, InvestorPlace also warned that Sling TVâ€s growth could be offset by the decline of traditional pay TV. The number of subscribers for DISH TV dwindles by the year—about 1 million, in fact—and this could erode DISHâ€s overall margin profile.

Nevertheless, it has been predicted that in about 5 years, DISH Network will still retain the total number of pay TV subscribers it has. Unlike today, however, subscribers will then be a mix of those supporting traditional pay TV and those subscribed to OTT services. While DISH TV will keep losing 1 million subscribers annually, Sling TV could potentially add 1 million subscribers per year.

the authorAdam Alderson
Adam is an aspiring writer and an artist who plays with his band on the weekends. He loves to write about cord cutting and digital industry focused articles. His favorite movie is "Home Alone". He loves watching his home team Birmingham City FC play while listening to House Music. Favorite Teams - Basketball: Spurts, Football: NY Jets, Soccer: Birmingham City FC.