EchoStar and Dish Network are moving ahead with a new mobile TV product despite a recent court ruling that could produce static for the device.
Barring legal complications, Dish is scheduled to become the first customer this summer for sister company EchoStar’s new television set-top receiver, embedded with Sling technology.
Sling is a TV lover’s dream — enabling users almost anywhere to have their home television sets send them video programming on laptops or mobile “smart” phones.
Yet only a relatively tiny market of cutting- edge technology enthusiasts has emerged so far for the 5-year-old “place shifting” service.
That could change as EchoStar prepares to introduce cable and satellite television receivers with built-in Sling service, eliminating the current need to purchase and install a stand-alone Sling box.
“We believe the next big thing in the industry is a consumer being able to take video content with him wherever he is,” said Michael Hawkey, vice president of sales and marketing for Douglas County-based EchoStar.
A potential glitch, however, arose last week, when a federal judge ruled that EchoStar and Dish have violated TiVo’s digital video recorder patent.
DVRs let viewers pause, rewind and fast-forward live shows, as well as store programs on set-top hard drives.
The ruling requires Dish to disable DVR functions in existing set-top boxes and prohibits Dish or EchoStar from distributing new products with TiVo-like DVR functions, including the Sling-loaded receiver.
The firms gained a temporary stay of the order that, for now, allows them to continue this summer’s rollout of the new machine.
However, some analysts have said that chances are not good for Dish and EchoStar to appeal and overturn the ruling.
That would leave the firms in a position of either disabling a feature popular with consumers and retooling the new Sling-loaded box, or reaching a settlement with TiVo.
The companies have not commented on whether a settlement offer will be made.
Yet they still remain bullish on consumer potential for Sling.
Dish said it expects a sizable number of its 13.7 million customers will consider leasing the new $199 receiver with Sling.
EchoStar hopes to market the device to a number of cable and satellite providers in addition to Dish.
“The market, as of yet, is unproven,” said Ira Barr, chief marketing officer of Dish. “But we’re hoping the integration of (Sling) into the set-top box will really fuel growth. It gets to the very heart of better value for the money for subscribers.”
Sling is a viable option compared with visiting individual websites for online video, Barr said, because Sling customers can easily access all of their live and recorded content from one location as part of their standard monthly satellite TV fee.
“It’s a very good product,” said industry analyst Jimmy Schaeffler of The Carmel Group. “Is it a must-have? No, it is not. But it’s something that upscale consumers will begin to use and will not want to be without.”
Denver home-theater-equipment dealer Patrick Espinosa said he believes the potential for mass-market distribution of Sling-loaded receivers is high.
And he’s a personal fan of the technology.
“The coolest use of Sling I had was when a Nuggets playoff game was on TV, but I also had Rockies tickets that I didn’t want to give up,” he said. “So I went to the (baseball) game and also watched the Nuggets on my phone.
“It was the best of both worlds.”
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
