DISH Network losing subscribers
DISH Network announced a quarterly loss in subscribers, causing it’s stock price to fall roughly 5%. According to Craig Moffett, analyst with Bernstein research, “it’s the first ever loss of subscribers by a major satellite TV company.”
DISH blame’s the loss on “aggressive promotional offerings by our competition” and “weak economic conditions.”
Also not helping DISH is the loss of their partnership with AT&T who had been bundling DISH service with their “Triple Play” offering which had accounted for roughly 15% of their new subscriber additions the first six months of the year.
From a statement in a regulatory filing by DISH, their “ability to maintain to grow our subscriber base will be adversely affected if we do not enter into a new agreement with AT&T.”
Without that relationship DISH can likely expect their cost of subscriber acquisition to rise.
Not all news is bad for DISH, however. Helped by an increase in programming costs their revenues rose to $336 million, or an increase of 75 cents per basic share and 73 cents per diluted share.