You know how cell phone companies have MVNO's? What if we had the satellite TV equivalent? Sky Angel kind of operated the same way, except they owned some transponders.
These new virtual satellite TV companies would not own any transponders but would merely resell what DISH is already broadcasting. Each "VSTV" company would still have to negotiate their own rates with each content provider such as Viacom, and would be responsible for their own advertising, sales, installation, and billing. They would also pay some kind of a fee to DISH, while Echostar could provide receivers.
I think the DISH / Echostar split makes this arrangement a lot easier, actually.
There are some benefits to this arrangement. VSTV providers don't have to make deals with everyone, and each VSTV provider would be free to cut different deals. This provides choice and benefits to the customer.
Here is one example of a benefit to some customers. Let's say, you are a customer looking for TV service. And you don't watch sports. We all know how ESPN is force-bundled into almost everyone's subscription, under the threat of losing access to ABC stations. ESPN is also the most expensive cable channel per subscriber. Maybe one VSTV company decides to just tell Disney to go to hell. They cut deals with everyone else instead, and anyone in a city with an ABC O&O gets a free antenna.
The opposite scenario is also possible - perhaps even more people may want just ESPN, and are content with OTA for other sports and general programming. Now, Disney could still force the Sports VSAT to carry ABC Family or whatever, but the provider could just market that as bonus channels. They could also cut a deal with Starz to offer that service as a premium to whoever is interested.
You could have other specialty providers as well. Perhaps one VSTV company is established exclusively to provide cable news. They may be able to convince the large media companies to sell just just their cable news stations to the provider, in exchange for the provider agreeing not to offer any other sort of content on the system.
Perhaps the receivers could be configured in such a way as to allow you to subscribe to several providers, a-la DISH/Sky Angel or DirecTV/USSB.
These new virtual satellite TV companies would not own any transponders but would merely resell what DISH is already broadcasting. Each "VSTV" company would still have to negotiate their own rates with each content provider such as Viacom, and would be responsible for their own advertising, sales, installation, and billing. They would also pay some kind of a fee to DISH, while Echostar could provide receivers.
I think the DISH / Echostar split makes this arrangement a lot easier, actually.
There are some benefits to this arrangement. VSTV providers don't have to make deals with everyone, and each VSTV provider would be free to cut different deals. This provides choice and benefits to the customer.
Here is one example of a benefit to some customers. Let's say, you are a customer looking for TV service. And you don't watch sports. We all know how ESPN is force-bundled into almost everyone's subscription, under the threat of losing access to ABC stations. ESPN is also the most expensive cable channel per subscriber. Maybe one VSTV company decides to just tell Disney to go to hell. They cut deals with everyone else instead, and anyone in a city with an ABC O&O gets a free antenna.
The opposite scenario is also possible - perhaps even more people may want just ESPN, and are content with OTA for other sports and general programming. Now, Disney could still force the Sports VSAT to carry ABC Family or whatever, but the provider could just market that as bonus channels. They could also cut a deal with Starz to offer that service as a premium to whoever is interested.
You could have other specialty providers as well. Perhaps one VSTV company is established exclusively to provide cable news. They may be able to convince the large media companies to sell just just their cable news stations to the provider, in exchange for the provider agreeing not to offer any other sort of content on the system.
Perhaps the receivers could be configured in such a way as to allow you to subscribe to several providers, a-la DISH/Sky Angel or DirecTV/USSB.
