The strategy for DISH Network to market and expand its customer base via its set-top box business is starting to emerge. The satellite TV company announced a carriage agreement with LIN TV to carry the groups 17 local networks in both SD and HD.
Additionally, DISH Network and LIN TV agreed to a marketing and promotional plan to get the word out regarding the February 17, 2009 switch to all digital transmission of television signals. The partnership, dubbed as an agreement to “build awareness of the upcoming digital transition” allows Dish Network to reach potential customers at the local level in 17 markets including:
· KASA-TV and KRQE-TV (Albuquerque)
· WXAN-TV and KNVA-TV (Austin)
· WIVB-TV and WNLO-TV (Buffalo)
· WWHO-TV (Columbus)
· WDTN-TV (Dayton)
· WANE-TV (Ft. Wayne)
· WOOD-TV and WOTV-TV (Grand Rapids)
· WLUK-TV (Green Bay)
· WTNH-TV and WCTX-TV (Hartford-New Haven)
· WISH-TV and WNDY-TV (Indianapolis)
· WLFI-TV (Lafayette)
· WALA-TV and WBPG-TV (Mobile)
· WAVY-TV and WVBT-TV (Norfolk)
· WPRI-TV and WNAC-TV (Providence)
· WWLP-TV (Springfield)
· WTHI-TV (Terre Haute)
· WUPW-TV (Toledo)
Dish Network will leverage this agreement in two ways.
First, DISH can reach viewers watching local television in order to educate them about the digital transition. Earlier this year, Dish Network introduced two new digital-to-analog converter boxes, the TR-40 and TR-50. These units are set to his the market this summer, and will allow viewers to continue to watch TV on analog sets. The TR-40 will sell for $39.99, and will be essentially free if customers use a government coupon.
Second, Dish Network can get their brand out in front of many more eyes. The agreement with LIN TV will “also encourage consumers to switch to DISH Network if LIN TV’s local station signal is removed from a cable system.” DISH and LIN TV will be pushing the availability of local programming through satellite TV. LIN TV also gets some leverage in the deal, working the agreement with DISH Network in order to cut better deals with cable operators in the markets they serve.
Obviously the hope from DISH Network’s perspective will be that instead of hassling with converter boxes just to continue watching local channels some viewers will just get a satellite dish. An agreement like this will position the satellite television provider front and center when customers decide to go digital.
