Dish & Microsoft Pact May Be Looming

Stock Tickers: DISH, MSFT, DTV

This morning Engadget is covering a story where Echostar (DISH-NASDAQ) is close a to deal with Microsoft (MSFT-NASDAQ) to bring the satellite digital programming to PC’s.  DirecTV (DTV-NASDAQ) has such an offering signed, so this may not be the most unexpected pact and may be sort of an "it’s about time" issue.

What is interesting on this is that there is not a timeline, and it is not without issues.  Many "cable loyalists" who get the Triple Play packages would be interested in being able to carry this IN ADDITION to their cable for internet, cable TV, and telephones.  But they don’t want the hassle of setting up satellite dish.  If I was personally going to do that it would have to be on the front top of my residence as it has to face south, and I presume there are many that would (either themselves or their spouse) cringe at pulling up to the driveway to be greeted by the satellite dish right in front as the first thing you see when you come home.

These points are arguable, but as 3-G takes better hold there are going to be more and more avenues for subscribers to link to these without being as tethered to an actual satellite.  This could open up a huge market of higher-end business users on top of the residential users.  So if they can make this work great, and if not then it’s just the natural progression of one service compared to another.

If this was truly revolutionary you would expect that DISH shares would be up, but they are down 0.6% at $40.75 on the day.  With all of the still planned convergence technologies, Wall Street appears to be taking the less-critical stance on this for now.

Jon C. Ogg
February 6, 2007