What is Dish?
Dish network is an American satellite television service provider, similar to DirecTV, in the United States. The launch of EchoStars’ first satellite in late 1995 marked the usage of Dish Networks as the consumer brand name of EchoStar. This launch set up the capability for EchoStar to provide subscription television survices, and the organization has launched numerous satellites since. Formally launched in 1996, it went on to provide numerous innovations for the television industry. The company was made independent of EchoStar, its’ parent company, in early 2008. Despite Dish’ Network’s departure, EchoStar remains the primarily provider of technology to Dish.
1999 saw Dish releasing the first HDTV tuner allowing for resolutions that far exceeded the accepted norms. In 2011, the company purchased the rapidly declining Blockbuster organization. The company intends to be a powerful force for innovative technologies, with a new focus on mobile applications. It has developed popularity among the immigrant community, and other niches, for its’ dedication to providing foreign broadcasting, whilst also providing satellite television, internet, interactive television, and pay-per-view services. The company provides service to over fourteen million subscribers as of quarter three, 2013.
The Bitcoin community has eagerly been waiting for a large broadcasting organization to accept Bitcoin payments. Netflix, seen as a progressive entertainment provider, was the anticipated candidate. The sudden cooperation of Dish and Coinbase was unexpected. May 29th, 2014 saw the announcement of Coinbase being the Bitcoin payment processor for Dish, simultaneously announcing Dish’s acceptance of cryptocurrency.
Dish and the former Blockbuster are speculated to have cornered the market with a micro payment model designed to sell content. By integrating the pay-per-view system being developed with Bitcoin, and Dishs’ tradition of interactive television, a new style of content can be streamed through the television. This would give Dish an incredible competitive edge comparable to the sudden rise of Netflix in previous years.
The official announcement on the Coinbase website states briefly,
We’re excited to announce that DISH will accept bitcoin and has chosen Coinbase as their bitcoin payment processor. DISH today announced they are the largest company and first subscription model pay-TV provider to accept bitcoin, marking a large step forward in the growing momentum of customers paying companies in bitcoin for things we do every day, like watching premium TV. We are glad to be working with the DISH team, to serve their current and new subscribers with Coinbase as their easy to use bitcoin transaction platform.
Effect on Bitcoin Economy
Speculation as to the jump in bitcoin price has been tied to this recent development. Bitcoin has gone up in price nearly two hundred dollars within the last month, and after the recent announcement with Dish, the incline has continued along the same pattern. The growing acceptance of Bitcoin by the masses is fueled by investment of large multi-million, or perhaps even multi-billion, dollar organizations. This leads to more adopters, those owning bitcoin to raise sell price, and the overall price rising. Bitcoin is becoming stronger and stronger, leading to more interest, which in turns strengthens it further. This is a cycle spiraling into the normalization and acceptance of cryptocurrencies into the worldwide sphere of economics.
The third quarter will mark Dishs’ acceptance of Bitcoin for their subscription television model. Dish is the largest company to integrate Bitcoin, with its’ total revenue reaching $13.9 billion as of quarter three 2013. The 34,000 employees working for Dish will no doubt be affected by this decision. Just as Overstock, an online retailer based in Utah, presents employees the option of receiving a portion of their salary in Bitcoin, it is expected Dish will present similar opportunities. The company may even offer an incentive to choose Bitcoin, such as increasing their total salary in worth by it. This would allow Dish employees to pay their bills to their television provider with relative ease.
No conversion into dollars, or any other fiat, would be necessary in order to complete these transactions. Instant payments would allow for bill balances to be settled quickly, without much of the hassle television service providers are infamous for. Receiving payment in bitcoin through these incentives would strengthen the economy, and employees accustomed to paying Dish bills this way would be more inclined to purchase other things using bitcoin. Bitcoin begins to become independent of fiat and take on its’ own economic relevance as a legitimate currency in the eyes of thousands through this development.