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CES 2012: DISH Advances with New HD-DVR, More Programming, and a 12 Mbps Broadband Bundle

| Jan 11, 2012 | Consumer Services U.S.
| Analyst: Larry Hettick

Event Summary

January 9, 2012 - DISH Network “relaunched” the company at CES 2012, in the words of its new CEO, shortening its name to “DISH” with a new logo and a new focus on family and entertainment—and seeking to differentiate itself beyond being the low-price leader. It also introduced a new whole home HD DVR system, added content from numerous sources including HBO and Univision, and announced plans for a partnership with ViaSat to bundle satellite-delivered broadband featuring 12 Mbps downstream and 3 Mbps upstream.

Quick Take

Analytical Summary

• Current Perspective: Positive on DISH’s latest HD-DVR solution, the addition of more content to its satellite and Blockbuster @ Home customers, and for the addition of a competitive satellite broadband service partner. The new HD-DVR has industry-leading storage and whole-home features, the programming additions allow DISH to better target families and Latino subscribers, and the addition of a broadband satellite partner with ViaSat will give DISH its own competitive double play that does not rely on telco DSL partnerships.

• Vendor Importance: High on DISH’s addition of a broadband partner offering a 12 Mbps (downstream) tier, since its second-tier telcos partners have limited reach to provide wireline broadband to rural customers. DISH has been innovative with its set-top boxes, so the next generation allows it to sustain this competitive advantage. As DISH tries to compete against Netflix with its Blockbuster @Home service, the addition of more content is a step in the right direction, although Netflix still dominates the market with its online streaming content offering.

• Market Impact: Moderate on the digital home service market, because the ViaSat partnership corrects a longstanding DISH weakness. Cable operators and telcos competitors typically report over that more than 60% of their customers buy two or more services, with broadband the most likely second element. This new broadband partnership allows DISH to compete with its own double play, although the speed tier will be more effective against DSL offers than against Verizon’s FiOS service or cable company DOCSIS 3.0 tiers. Meanwhile, the current DISH industry lead with a new HD DVR solution will be matched over time as competitors also add more HD DVR features and storage capacity.


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DISH Introduces Hopper and Joey -- Next Generation Whole-Home HD DVR Entertainment System
LAS VEGAS, NV -- (MARKET WIRE) -- 01/09/12 -- (NASDAQ: DISH)
• Features two-terabyte hard drive for up to 2,000 hours of entertainment
• Never miss a primetime network show with PrimeTime Anytime
• Records up to six programs in HD simultaneously, including PrimeTime Anytime
• Hopper and three small Joeys let viewers watch HD and control DVR in four rooms DISH Network L.L.C., the nation's third largest pay TV provider, today introduced a whole-home high definition DVR entertainment system featuring the award-winning Hopper™ and Joey™.

The Hopper HD DVR and accompanying small Joey set-top boxes create a whole-home HD DVR entertainment system that lets DISH customers easily record, pause, and play back shows from any room in the home. While most whole-home DVRs do not have the same DVR functionality on every TV, the Hopper and Joey whole-home system offers the same DVR functionality on every TV, letting customers pause, play and rewind both live and recorded HD programs in up to four rooms.

The Hopper was unveiled by DISH CEO Joe Clayton at the 2012 International CES in Las Vegas today, and it is already winning honors as a CES Innovations 2012 Design and Engineering Award honoree. Pricing and packaging will be announced later this quarter. The main Hopper unit features:
• Three satellite TV tuners
• A two-terabyte hard drive for up to 2,000 hours of video entertainment
• Up to 250 hours of HD or up to 1,000 hours of SD user recordings
• Bluetooth for linking to devices such as wireless headphones
• Picture-in-picture for watching any two channels simultaneously Combined with a Joey, the Hopper whole-home HD DVR system offers more advanced features:
• 750 MHz Broadcom processer -- the fastest satellite receiver processor available today for a quick, responsive on-screen guide
• Approximately 50 percent more energy efficient for a four-room installation than previous models
• ZigBee RF4CE using a proprietary protocol remote with "remote control finder" alert
• High definition user interface
• Easy-to-use, fast, graphical, tile-based user interface with predictive search
• Small, sleek chassis for convenient placement

"Building on a heritage of award-winning DVRs, DISH is proud to be the first to introduce a groundbreaking product that delivers the most choices for TV entertainment by integrating multiple sources of video into one set-top box," said DISH Network CEO Joe Clayton. "The Hopper gives our customers network TV shows on demand and thousands of family movie choices streaming or delivered to the hard drive. With its massive storage, the Hopper leads the industry in delivering the most entertainment options, bar none, for every member of the household."

The Hopper -- Endless Entertainment Options

The Hopper's new, unparalleled feature, PrimeTime Anytime™ allows customers, with one click, to record using a single tuner all of the primetime TV programming from ABC, CBS, FOX and NBC -- the networks that deliver the most popular shows during primetime. Once activated by a customer, PrimeTime Anytime records network programming in high definition, where available, every night and stores them for eight days after they have aired. This creates an on-demand library of approximately 100 hours of primetime TV shows, and makes it easy to catch up on episodes from last night and last week's airing. The Hopper can record up to six TV shows at once (two live programs and four PrimeTime Anytime shows) while allowing viewers to watch up to four different recorded or on-demand shows in four rooms of the house, simultaneously. This gives a family a variety of options to control or view their recordings and to watch shows in any room from a single Hopper.

The Hopper's on-demand capabilities give access to DISH's Blockbuster @Home™ for $10 per month which is now enhanced with more than 10,000 total titles streaming to the TV.

The Hopper also offers on-demand content for customers with limited or no Internet access with a feature called DISH Unplugged. This feature delivers via satellite hundreds of the most popular movies and TV shows to the hard drive, including transactional and authenticated videos on demand. DISH Unplugged provides a high quality picture without buffering and makes available many of the same streaming movie choices offered by Blockbuster @Home, including premium movie access.

And for subscribers of DISH's America's Top 120 programming package or greater, the Hopper provides whole-home music distribution from 73 SiriusXM channels, including album art and a unique collapsible list of music channels located at the top of the channel guide at Channel 99, making it faster and easier for SiriusXM music fans to find their favorite music.

Additionally, the Hopper will features TV apps that give viewers real time access to Facebook, Twitter, Pandora and photo sharing, as well as games, news, weather, sports, and stock quotes.

TV Everywhere

Customers can manage the Hopper via the Internet at www.DishOnline.com or the DISH Remote Access app, providing the ability to control DVR recordings on their tablets, smartphones and computers. Connecting the Hopper with DISH's Sling® Adapter provides customers the ability to watch and control all live TV channels, PrimeTime Anytime programs and the DVR on their computer, tablet or smartphone wherever they go.

The Hopper and Joey are designed and engineered by EchoStar Corporation (NASDAQ: SATS). The Hopper works by distributing HD signals through existing co-axial cable in the home using the Multimedia over Coax Alliance (MoCA) specification. The Hopper is powered by a Broadcom 750 MHz processor, the most powerful satellite TV processor available today delivering a fast and responsive on-screen guide and a graphical user interface that features channel logos to help search channels, movies or TV shows quickly. The advanced search platform also allows for navigation of programs across satellite TV, broadband and an optional external hard drive.

For more information about the award-winning Hopper and Joey by DISH, including technical specifications, please visit www.dish.com/hopper. To watch live TV on the iPad, subscribers need a Sling Adapter from DISH and a broadband-connected compatible DISH HD DVR receiver. More information is available at dishnetwork.com/tveverywhere/remoteaccess.

DISH Makes Expansive HBO Content Available On Demand for Home TV Viewers

LAS VEGAS, NV -- (MARKET WIRE) -- 01/09/12 -- (NASDAQ: DISH) -- DISH Network L.L.C. and Home Box Office, Inc., announced today an agreement that will give DISH customers expanded access to HBO's acclaimed programming. The agreement enables DISH customers with or without Internet, who subscribe to HBO and Cinemax, to watch expanded selections of HBO content instantly from the comfort of home. DISH customers with Internet access and select DISH HD DVRs who subscribe to HBO or Cinemax will soon be able to enjoy an expanded version of HBO On Demand and Cinemax On Demand, giving them instant access to virtually every episode of every season of the best HBO shows -- most of which are available in high definition -- including "Luck®," "Game of Thrones®," "Boardwalk Empire®," "True Blood®," "Deadwood®," or "The Sopranos®," as well as popular Hollywood hit movies, documentaries, stand-up comedies, sporting events, and independent films.

In addition, a new feature called DISH Unplugged will make hundreds of HBO movies and TV shows available via satellite to the DISH DVR. Customers who subscribe to HBO will have instant access to HBO programming through their receiver in the highest video quality and with no buffering. These programs will be refreshed every day by satellite, providing HBO customers the most current selection of HBO programming. DISH Unplugged will be first available as a feature of the recently announced Hopper, a whole-home HD DVR entertainment system to launch in the first quarter of 2012.

"DISH is thrilled to be working with HBO to bring this broad collection of highly acclaimed programs to our customers for instant access at home," said Dave Shull, senior vice president of Programming, DISH. "Whether our customers are online or off the grid, we offer a solution to give them convenient access to the most popular programming."

"We are pleased to remain at the forefront of innovative delivery methods for providing our award-winning original series and movie selections to our devoted viewers," said Shelley Brindle, executive vice president, Domestic Network Distribution and Marketing, HBO.

DISH customers can also watch HBO's vast content through the recently updated DISH Remote Access app on Apple iPads, and online at www.dishonline.com, HBOGO.com or MAXGO.com.

DISH DVRs capable of accessing HBO and Cinemax content online include the ViP 612, ViP 622, ViP 722, ViP 722k and Hopper receivers connected to high-speed Internet service.

DISH Network and Univision Communications Sign Groundbreaking Multi-Year, Multi-Platform Distribution Agreement

DISH Becomes First Distributor to Launch Univision's Telenovela, Sports and News Networks; Delivers Broad Distribution of Univision Deportes; and Provides Exclusive Access of Univision Deportes Dos; Partnership Adds More Than 3,500 Titles to Blockbuster @Home Including Exclusive VOD Library Content

LAS VEGAS, NV -- (MARKET WIRE) -- 01/09/12 -- (NASDAQ: DISH) -- DISH Network L.L.C., the nation's third largest pay-TV provider, and Univision Communications Inc., the leading media company serving Hispanic America, have signed a multi-year, multi-platform agreement that will bring the most comprehensive selection of Spanish-language networks and content to DISH Latino subscribers. At the 2012 International Consumer Electronics Show in Las Vegas, DISH announced that in the first half of this year it will launch Univision's new networks -- Univision Deportes, Univision tlnovelas, Univision Noticias -- and offer exclusive access to Univision Deportes Dos. DISH will provide broad distribution of Univision Deportes, and Univision will provide DISH with thousands of hours of novelas and Spanish-language movies for inclusion in DISH's Blockbuster @Home package. In addition, the agreement includes distribution of Univision's networks: the Univision Network, TeleFutura, Galavision and a suite of six TV channel offerings -- De Película, De Película Clásico, Bandamax, Ritmoson, Telehit and Clásico TV.

"We are pleased to have reached an innovative deal with Univision for their newest channels and their primetime novelas on demand," said Dave Shull, senior vice president of Programming, DISH. "DISH is the leading provider of Latino content in the United States. This deal for exclusive linear and VOD content from Univision provides our customers with the broadest selection of top quality Spanish-language content." This unprecedented offering is Univision's first authentication partnership with a pay-TV provider, giving DISH customers access to Univision's portfolio of current primetime and library content.

"This agreement with DISH Network, a long-term leader with US Hispanics and long time Univision partner, speaks to their vision and understanding that growth in Hispanic audiences on Univision's platforms will result in subscriber growth," said Tonia O'Connor, president of Univision Distribution Sales and Marketing. "DISH is a great innovator. The distribution of these new Univision networks, and the thousands of hours of Spanish-language content that can be streamed in and out of home for the first time ever behind a pay-wall, demonstrates DISH's commitment to deliver Hispanic subscribers the most robust content offering across multiple screens."

The new networks include the following:

Univision Deportes: The US home for Hispanic sports fans, Univision Deportes will provide more than double the amount of Mexican Primera Division matches than any other network in the country, with exclusive rights to the home games for 12 of the 18 teams within the Mexican Primera Division, three exclusive Mexican Primera Division soccer matches live every week, plus away games for the rest of the league's teams. Univision Deportes will deliver live sports and up-to-the-minute news coverage that matters most to US Hispanic sports fans. The network will also include live coverage of FIFA events from 2012-2014 and programming from Televisa Deportes network. DISH subscribers will also receive exclusive access to specific Mexican Primera Division games that will not be seen anywhere else.

Univision Deportes Dos: Univision Deportes Dos, exclusively available on DISH in 2012, will complement the Univision Deportes network. The new network will air matches from Univision Deportes and with programming from Mexico's Televisa Deportes network.

Univision tlnovelas: Home to the best telenovelas from Televisa, Univision tlnovelas delivers a mix of the top recent and past favorite novelas some of which have never been seen in the US.

Univision Noticias: The destination network for the latest and most relevant news from Mexico, Latin America and around the world, Univision Noticias includes top quality news, current affairs and entertainment coverage.

Further terms of the agreement were not disclosed. Blockbuster Movie Package for DISH Customers Enhanced With Thousands of Streaming Movies and TV Shows for Kids


Blockbuster @Home, for Only $10 per Month, Gives More Than 100,000 Titles by Mail, In-Store Exchanges, 10,000 Titles Streaming to TV and 25,000 Titles Streaming to Computer

LAS VEGAS, NV -- (MARKET WIRE) -- 01/09/12 -- (NASDAQ: DISH) -- DISH Network L.L.C. announced today the expansion of family and kid's programming available through the company's Blockbuster @Home™ entertainment package. DISH will add more than 3,000 titles suitable for children ages three to 13 as part of its growing line-up of family entertainment, including programming from partners Vivendi Entertainment, Cookie Jar, Lions Gate Films and Scholastic Media.

Families that subscribe to the Blockbuster @Home package by DISH can enjoy popular titles on-demand, including shows such as "Veggie Tales," "Inspector Gadget," "Goosebumps," "Heathcliff," "I Spy," "Madeline," "Strawberry Shortcake" and many more.

"The Blockbuster brand is known for two things: family and movies and now we offer our customers more of both," said Dave Shull, senior vice president of Programming, DISH. "Our kid's programming expansion provides families an even bigger selection of shows that are exciting and educational."

Blockbuster @Home is an expansion of Blockbuster Movie Pass, introduced by DISH last fall. For $10 per month, this exclusive package offers DISH customers the following:

• More than 100,000 DVD movies, TV shows and games by mail with unlimited in-store exchanges of DVDs and video games at participating Blockbuster stores;
• Streaming access on the TV to more than 10,000 movies and TV shows, including more than 3,000 kids and family shows;
• More than 25,000 movies and TV shows on demand on the computer;
• More than 3,000 video games by mail;
• More than 20 premium movie and family channels.

Blockbuster @Home, offered only to DISH customers, is now available on the iPad® through the recently enhanced DISH Remote Access app. To access Blockbuster @Home or on-demand content, a DISH HD DVR ViP 612, ViP 622, ViP 722, ViP 722k or the Hopper whole-home HD DVR entertainment system is required.

Many of the same streaming movie choices offered by Blockbuster @Home will also be accessible on the Hopper for customers who have limited or no Internet access with a feature called DISH Unplugged. DISH Unplugged offers hundreds of movies delivered to the Hopper's internal hard drive via satellite, ensuring no buffering and the highest quality video experience.

LAS VEGAS, NV -- (MARKET WIRE) -- 01/09/12 -- (NASDAQ: DISH) -- DISH Network L.L.C. and ViaSat Inc. (NASDAQ: VSAT) today announced the availability of next-generation satellite broadband service bundled with DISH's popular satellite television service. In February, DISH will launch its advanced satellite broadband packages with up to 12 Mbps download and 3 Mbps upload speeds bundled with a variety of DISH TV programming packages.

The DISH broadband bundle includes:
• Bundles starting at $79.98 per month
• Up to12 Mbps download speeds
• 24/7 telephone tech support at no additional charge
• Installation starting at $99

DISH's bundled video and broadband products offer consumers speed, value and excellent customer service with a single bill and one installation. The new bundled offer is a great alternative for the millions of American consumers, mostly rural, with limited broadband options.

"This is one more example of DISH meeting the needs of consumers," said DISH CEO Joe Clayton. "The market potential for this new Internet service is substantial given the nearly eight million to 10 million mostly rural American households that are unserved and millions more left with slower broadband alternatives."

ViaSat will provide the satellite delivery services enhanced by DISH billing, installation, customer service and merchandising.