How Dish's Newest Deal Impacts Your Cable Bill

Thinking about cutting the cord for cable? That day may be here, as DISH Network Corp. (DISH) just announced a new product that will give you access to ESPN, ESPN2, Food Network, HGTV, Cartoon Network, Disney Channel, and more for just $20 a month.

Source: Business Wire.

Earlier this week, Dish announced it will be launching Sling TV, a $20 a month service that shows some of the most popular cable channels -- as well as on-demand content -- needing only an Internet connection, with no contract.

"Consumers can now watch their favorite shows on their favorite devices that they already use to watch video. Live television, including ESPN, for $20 per month with no commitment or contract, is a game changer," said Sling TV's CEO, Roger Lynch, in the press release. "The arrival of Sling TV lets consumers, who've embraced services like Netflix and Hulu, take more control of their video entertainment experience."

Customers will be able to access their content through some of the most popular existing devices, including Amazon Fire TV and TV Stick, the Nexus Player from Google, Roku players and TV models, the Xbox One, as well as select Smart TVs from Samsung and LG, in addition to iOS, Android, Mac, and PC devices.

In other words, just about everything.

And what exactly can be watched? The initial "Best of Live TV" package includes the following 12 channels:

In addition, the service will also offer add-on packages for $5 a month, including "Kids Extra" with channels Disney Junior, Disney XD, Boomerang, Baby TV and Duck TV, as well as a "News & Info Extra" add-on with HLN, Cooking Channel, DIY and Bloomberg TV. The company also highlighted a "Sports Extra" package will be here soon.

All of this is to say, if you were thinking about cutting the cord to cable, Sling TV may be just what you need finally pull the plug.

But the next question is: Will it actually cut your cable bill?

Does cutting cable mean cutting cost?
While it's far, far too early to tell what the impact to consumers will be, it's important to recognize a service like this could (and likely will be) a true game changer. As a millennial myself -- to whom the service is targeted -- it seems like a perfect fit.

As Money.com reported, "The average monthly cable TV bill is rising 6% a year. It's projected to hit $123 a month next year and top $200 by 2020, according to market research group NPD."

Source: Flickr / bobaliciouslondon.

Cut the cost of cable by more than 80% and get all the channels I watch? Sign me up.

But the reality is, many cable companies like Comcast (CMCSA 1.19%) and Time Warner Cable (NYSE: TWC) are also Internet services providers, meaning they could respond by simply raising the costs of broadband-only Internet services.

And it may be warranted, because if bandwidth use rises thanks to "millions" -- as DISH's president and CEO Joseph Clayton said in the press release -- of people using Sling TV, then a cost increase may be warranted. Research firm Sandvine projects the median monthly Internet consumption will have grown between 30%-40% in 2014 alone.

At the same time, though, with every challenge, there is opportunity. One has to wonder if Internet usage begins to soar, what the response will be from services like Google Fiber -- which offers Internet speeds 100 times faster than basic broadband -- thanks to heightened consumer demand for faster Internet. It would only be a sensible business decision to offer faster services at better prices.

The key takeaway
While we may not know what the exact impact will be to your cable bill in the long run, there is no denying Sling TV may be taking on the last great frontier for people everywhere to say goodbye to cable.