Dish Earning Conf Call Monday 8/4/08
- Thread starter dmendenjr
- Start date
- Latest activity Latest activity:
- Replies 136
- Views 13K
From Dish Network's 2Q Net Up 50%, EchoStar Swings To Profit
"The firm lost 25,000 net subscribers during the quarter, which it blamed on the weak economy, as well as impressive advertising of it competitors, especially in high-definition services.
The deal with AT&T was supposed to help with the declining number of new customers for the company. But when AT&T registered only 3,000 net new customers in the second quarter - down from 162,000 a year ago - it told Dish it was cancelling the new agreement at the end of the year, opening the possibility it will sign with DirecTV. Total subscribership for Dish is now 13.79 million.
The number of customers who left the network, the company's churn rate, rose to 1.87% from 1.68%"
I wonder if the AT&T number that's published is another reason that AT&T told Dish they were terminating their marketing agreement at the end of the year?
"The firm lost 25,000 net subscribers during the quarter, which it blamed on the weak economy, as well as impressive advertising of it competitors, especially in high-definition services.
The deal with AT&T was supposed to help with the declining number of new customers for the company. But when AT&T registered only 3,000 net new customers in the second quarter - down from 162,000 a year ago - it told Dish it was cancelling the new agreement at the end of the year, opening the possibility it will sign with DirecTV. Total subscribership for Dish is now 13.79 million.
The number of customers who left the network, the company's churn rate, rose to 1.87% from 1.68%"
I wonder if the AT&T number that's published is another reason that AT&T told Dish they were terminating their marketing agreement at the end of the year?
I thought they simply lost 25k individual subs, which would not be bad at all. Then it turns out they actually had a net loss of 25k subs. This is not good. Even I as a Direct sub hopes Dish does a lot better. Subs of both providers need both companies to stay competitive.
They used the same reasoning last quarter. If it really is the economy then one would expect other providers to do bad and the provider with the cheaper package options (i.e. Dish to do better). But the prior quarter both FiOS and Direct did very good while Dish suffered more than expected
Actually, IMHO, this could be good, E* has bad numbers and really turns up the heat on D* by cutting profit to the bone to help boost new subs, D* would need to do something vs. just sitting back and watching the folks come to them.
Charlie needs to become a member here. Most everyone here predicted a bad q.
Charlie has said before that he will get more involved on the day to day business side of Dish. Has he already started???
Charlie has said before that he will get more involved on the day to day business side of Dish. Has he already started???
They Turbo Charged their fees. DVR fee, no phone line fee, external hard drive fee...
Where does the 777,000 number come from?
13,900,000 X 0.0187 = 260,000 +/-
What am I missing here?
Brad
They lose money on new customers (equipment installation etc) fewer customers also equals fewer truck rolls etc.. they prolly got rid of more than a few tsr's and csr's etc..
Thanks, but I also the same person who stated VOOM DBS would create a niche market of 1 million HD customers by 2008.
Simple...now that VOOM is gone from lineup, they are getting $10-$20 per whack per HD customer, and the HD channels in their lineup are either free or very low cost to them; they were probably paying between 8-10 milllion per month with VOOM in the lineup. Additionally, E* has been pushing the DVR. If you're like my family, you probably have more than one DVR in your home (I have 7 or 8). I wouldn't be surprised if there are more than million DVRs in service than last year, at $5.98 a whack.
As you mentioned in the Satelilte Dish, E* needs to get rid all these nickle and dime fees because they are driving away customers. Since DirecTV is going to remain the premium service provider (thanks to Sunday Ticket), E* needs to focus on proving a better value. Get rid of the $10 HD add-on package and the multiple DVR fees and E* will see a huge improvement in churn.
Dish will always have churn (every provider has it), they just need to keep it minimized. Dish has to come to grips with the fact that they are no longer the low cost leader. This I think more than anything else is keeping new subs from signing up and causing old subs to leave. They advertize a "low price" but when a sub gets around to signing up they see a huge bill because of all the fees, the sub backs off.
After you are a sub the high price does not get you all the channels DIRECTV has, plus you get random programming disputes. If you were saving $10/month many people would ride it out, but paying the same, why go through the hassel.
After you are a sub the high price does not get you all the channels DIRECTV has, plus you get random programming disputes. If you were saving $10/month many people would ride it out, but paying the same, why go through the hassel.
Charlie, its not the weak economey and compitition.. Its the way you do buisness and the fact you are not adding the hottest channels quicker, or have the sporting packages that people want. Hell you dragged you feet adding the HD channels you have now, and you added specalty HD channels like WFN that nobody watches.
Your total is per month...multiply by 3 and you'll wind up with a quarterly total of 780,000.
It doesn't necessarily follow that a "declining" economy will result in fewer subs (or a slower rate of growth). In fact one might argue that DBS is one sector in which people increase their expenditures when the economy goes south; e.g. fewer vacations, nights out, replaced by PPV or perhaps additional movie channels.
I'm not saying it's one way or the other but there's been no basis offered for the excuse that "fewer subscribers" is due to the bad economy.
I'm not saying it's one way or the other but there's been no basis offered for the excuse that "fewer subscribers" is due to the bad economy.
It is an incredible number when you think about it... Almost 10,000 households a DAY leave Dish and almost 10,000 a DAY sign up. Each of the installs costing Dish 750 or so bucks.
Somewhat OT: Does anyone when when the other providers Q2 earnings reports are released? It would be interesting to compare each to determine how much the economy does affect the providers.
No,
For once, Moffett was right. It was a net loss of 25,000 customers. Dish is having almost zero net gain for the year. Last quarter was only 35,000 gain. Terrible numbers and churn rate. Bleak year for DISH
For once, Moffett was right. It was a net loss of 25,000 customers. Dish is having almost zero net gain for the year. Last quarter was only 35,000 gain. Terrible numbers and churn rate. Bleak year for DISH
Cablevision Add 260,000 video customers
Comcast Add 320,000 Digital Video
Comcast Lost 138,000 Basic Video
Direct reports on 08/07
Echostar/DISH Lost 25,000
At&T ?
Fios ?
Comcast Add 320,000 Digital Video
Comcast Lost 138,000 Basic Video
Direct reports on 08/07
Echostar/DISH Lost 25,000
At&T ?
Fios ?
I bet you much of the subscriber loss is from New York. They continue to not carry YES and DirecTV now carries MSG in HD and Dish does not. MSG carries 4 local sports teams in the #1 media market. That's huge. It's the reason I jumped ship.
Also, the Buffalo market has always been heavily Dish. But E* does not carry Sabres games in HD. Everyday I see a new slimline where a 500 used to be.
But hey, who cares about sports?
Also, the Buffalo market has always been heavily Dish. But E* does not carry Sabres games in HD. Everyday I see a new slimline where a 500 used to be.
But hey, who cares about sports?
