Dish Network Gains Sling TV Subscribers but Retention Is a Problem

The Dish Network launched the Sling TV application in 2015 to provide an alternative to the television viewers so that they can subscribe to the same content at a lesser charge and enjoy a hassle free experience.

The Sling TV is an over the top internet television service which has been structured as a virtual multi channel video programming distributor. It has been designed in a way such that it can complement subscription video on demand services for cord cutters, offering a selection of major channels. 

Although the response has been very encouraging for Dish TV, the parent company of Sling TV, as they have managed to ramp up a subscriber base of 13.2 million ( as disclosed in the fourth quarter results of the company). But has been a reason of concern for the company is that the newly launched streaming service of the company is also losing a lot of its customers. 

Competition from other streaming services… 

Sling TV added 711,000 subscribers in 2017, which is well below the 878,000 subscribers it added the previous year. The growth slowed down partly because of increased competition with other streaming services.

Moreover, there is also stiff competition from other streaming services like YouTube TV, Hulu, and Sony’s Vue.

Also, there is the issue of seasonal demand whereby users subscribe or want to sign up for a month to watch a particular content. And to add to that, every streaming service offers a free trial month of their service and many users sign up to use the service in the free period which boosts the subscriber numbers. And after a month they simply deactivate the service and move onto a new streaming service thus resulting in a fall in the subscriber base of the previous streaming service.

It has generally been seen that the free offers help in attracting consumers but as soon as the free period is over, the users tend to move back to either their cable TV operators or look for a new service. Taking note of this phenomenon, the companies have decided to address this issue and somehow limit this short term churn so that a loyal customer base can be build


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