Dish sheds 102,000 subs and reports a Profit

102,000 is really a drop in the bucket when you think of it: foreclosures have caused people to move, economy has caused people to cut back, fios has been expanding, directtv has some great 1 year promos, etc.

The bottom line is such: some people left to get a better deal for 12 months and save money or just gave up on all cable and/or satellite services in lieu of Netflix, the PC, etc.
Drop in the bucket...perhaps, but Charlie's boat is the only one taking on water these days...or should I say, "these past three-quarters of a year." With FiOS taking on 110K new subscribers each month, D* adding about 100K, U-Verse adding almost 90K, and E* losing their resale agreement with AT&T...Dish Network has better do something to plug-up the holes or the ship will eventually start sinking. Raising the rates, introducing confusing programming packs, and yanking channles in an attempt to fool people into believing they are getting a better value with Dish Network just isn't working.
 
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AMEN . . . hey Charlie, pay SatelliteGuys for technical support considering their problem solving is probably around 90% successful (10% require house calls) and 100% in understandable language!

You haven't read any of P. Smith's more technical posts, have you? :D

Just kidding, P. Smith.
 
BTW you guys should read what I wrote in MultiChannel back on Friday...

Monday Should Be Interesting | The Satellite Dish | Blog on Multichannel News - 11357
Nice article! Additionally, I was actually thinking Dish Network would lose more than 120K during the 4th quarter, but I stuck at 70K since 100K seemed like an impossible number. Anyway, people also have to remember this number was as of 31 December 2008. Here it is March 2nd and, by every indication I have seen, FiOS and U-Verse continue to add healthy numbers, the economy has only grown worse. Additionally, I still see long-time E* subscribers bailing on Dish Network after the yearly rate increase, even more confusing programming options, and more yanking of channels in everyone's best interested to hold down costs. I think it is fair to say that Dish Network has shed at least another 60K from Jan 1st until today.:confused:



I agree, but it should be interesting to see if E* posts a third straight quarter where they lost subscribers. With the loss of their resale agree with A&T, Verizon adding more than 100K FiOS TV subscribers per month during 4th quarter and AT&T adding more than 60K U-Verse subscribers per month, I get the feeling Dish Network will post losing more than 70K customers during the 4th quarter. While the economy is terrible shape, DirecTV appears to be moving forward while Dish Network is stuck in reverse. I cannot see how their confusing pricing and packaging can possibly put them back on the track.
 
I don't know if this was talked about, Charlie said they lost about one million ATT subs in Q4, if true then the net loss can almost be attributed to that.

And at the same time their net income was up by 24%. I have always suspected that dropping ATT might not be a bad idea. I recall ATT accounts were loss leaders, they never made any money for DISH, only added the total sub count.

Correction, they lost about 55K ATT subs, had a total of about one million of them.
 
The reason why their net income was up was due to the fact that they had to add fewer customers to contribute to the subscriber loss. If they added fewer customers then they did not have the costs involved with signing up new customers. This is good short-term, bad long-term. Eventually it will go the other way if they keep losing subscribers.

Another thing to consider is that Dish Network has been canning a lot of retailers lately that they state have committed fraud. I am sure this has contributed to fewer subscriber additions but also helped save the company money not having to pay full commissions acquring the same subscriber twice.
 
The reason why their net income was up was due to the fact that they had to add fewer customers to contribute to the subscriber loss. If they added fewer customers then they did not have the costs involved with signing up new customers. This is good short-term, bad long-term. Eventually it will go the other way if they keep losing subscribers.

Another thing to consider is that Dish Network has been canning a lot of retailers lately that they state have committed fraud. I am sure this has contributed to fewer subscriber additions but also helped save the company money not having to pay full commissions acquring the same subscriber twice.


The sub losses have to stop sometime if they expect to continue to be viable. D* faces the same stiff sub drop off from Fios and U-verse as E*, but is still growing. Comcast is also getting hammered by Fios in some areas, yet manages to hold on. There just isn't any compelling reason to go to E*. Their ads suck and are childish and their customer service from Mary and Simon in Asia is so bad that it is hard to describe to anyone who hasn't already experienced it. Who knows how many subs that costs E* every quarter. I still don't think Charlie gets it. His comment about costs going up again is telling as well. Would anyone really be that surprised with all we see and hear if E* added new HD in May and then raised prices.
 
I am going to be adding to that number too as soon as I get my act together.

Dish's dispute with Fisher Broadcasting has reached the levels of pure pettiness on Charlie Ergen's part. KATU no longer available to DISH Network Subscribers | KATU.com - Portland, Oregon | Inside KATU Charlie is putting subscibers into his own little vendetta with Fisher and I've had it. I have not had ABC programming since December 17 and it looks like nothing is in sight. Of course, Charlie has given me a credit of $1 a month for this. Having access to ABC is one of the reasons why I subscribe in the first place.

On this issue Charlie Ergen has destroyed years of goodwill for me as a subscriber and I know he has done the same to others in this market as well. I am not alone in how I feel.

And the thing is that with the recent increases Dish is actually higher than Directv for a comparable product. My 250 HD or whatever he calls it now is equivilant to a Directv package of the same for the same dollars. Throw in a $5 credit from the phone company for bundling and I actually come out ahead.

I think Dish's customer service has become better in recent years. But the man at the top is a grumpy, revengeful man. It is his attitude and deception that is pushing me out.
 
I wouldn't blame you for leaving but I wouldn't place all the blame on E*. Fisher started the battle by filing suit against E* for backpayment of carriage fees for a station they didn't even own until recently and was a must carry Univision station if memory serves. Just because Fisher says they are willing to separate the two issues, doesn't mean it is in E*'s interest to do so. I don't know all the particulars but I'll bet Fisher isn't telling the whole story. They are trying to rev up discontent against E* for their own advantage.
 
I wouldn't blame you for leaving but I wouldn't place all the blame on E*. Fisher started the battle by filing suit against E* for backpayment of carriage fees for a station they didn't even own until recently and was a must carry Univision station if memory serves. Just because Fisher says they are willing to separate the two issues, doesn't mean it is in E*'s interest to do so. I don't know all the particulars but I'll bet Fisher isn't telling the whole story. They are trying to rev up discontent against E* for their own advantage.

+1. I understand it suck to lose ABC, but it seems Fisher is the greedier party. Most of the others have been resolved. I think Fish was the one that wanted $0.60/sub/month, and, as pointed out, wants back payment for a must-carry station they purchased.
 
I am going to be adding to that number too ...

... the man at the top is a grumpy, revengeful man. It is his attitude and deception that is pushing me out.

I'm out too-- the moment my 18 month contract ends this month. Going back to cable. So many reasons why. But, by far the biggest reason is Ergen. There's only 2 explanations for this guy. 1) He's stupid (and we know he's not-- how can a multi-millionaire filling his personal pockets with our money-- be stupid?). Or, 2) He thinks we are all stupid.

Good riddance.
 
+1. I understand it suck to lose ABC, but it seems Fisher is the greedier party. Most of the others have been resolved. I think Fish was the one that wanted $0.60/sub/month, and, as pointed out, wants back payment for a must-carry station they purchased.

According to Fisher they've agreed to all of the Dish pricing demands. The ONLY issue out there is the suit for alleged back payments for the purchased stations. That has nothing to do with me or any other viewer of ABC programming in the Fisher markets. Why does this have to be all tied up for all of us viewers while these two battle this out? Let the back compensation issue go it's course, restore the channels for the viewers. Whomever is right on this will resolve itself in time. But holding me hostage for a channel that is not even in my market is ridiculous.

One note I find interesting is that Fisher management is accessible and the issues can be discussed. Dish Network on the other hand puts up so many barriers to even discussing the issue with senior management is just ridiculous. They've run the same Charlie Chat from December probably 3,600 times now. Not saying Fisher is right or wrong, but at least they talk to us. Charlie screens the Charlie Chat calls and ceo@dishnetwork.com is screened as well. No one, but no one talks to senior management.

Again, Dish is losing subscribers because of its arrogance.
 
According to Fisher they've agreed to all of the Dish pricing demands. The ONLY issue out there is the suit for alleged back payments for the purchased stations. That has nothing to do with me or any other viewer of ABC programming in the Fisher markets. Why does this have to be all tied up for all of us viewers while these two battle this out? Let the back compensation issue go it's course, restore the channels for the viewers. Whomever is right on this will resolve itself in time. But holding me hostage for a channel that is not even in my market is ridiculous.

One note I find interesting is that Fisher management is accessible and the issues can be discussed. Dish Network on the other hand puts up so many barriers to even discussing the issue with senior management is just ridiculous. They've run the same Charlie Chat from December probably 3,600 times now. Not saying Fisher is right or wrong, but at least they talk to us. Charlie screens the Charlie Chat calls and ceo@dishnetwork.com is screened as well. No one, but no one talks to senior management.

Again, Dish is losing subscribers because of its arrogance.

First, who is to say it isn't Fish that is holding the channel hostage? If they have agreed to pricing going forward, I would imagine Dish would be willing to restore the channel.

Can't say much about Dish v Fisher accessibility. But it's probably in Fisher's interest to spread only their side of the story. Perhaps they have agreed to Dish's price IF Dish cut's them a big one time check for the acquired stations.

But, back to topic. I doubt the Fisher issues are the big reason for Dish's Q4 problems.
 
According to Fisher they've agreed to all of the Dish pricing demands. The ONLY issue out there is the suit for alleged back payments for the purchased stations. That has nothing to do with me or any other viewer of ABC programming in the Fisher markets. Why does this have to be all tied up for all of us viewers while these two battle this out? Let the back compensation issue go it's course, restore the channels for the viewers. Whomever is right on this will resolve itself in time. But holding me hostage for a channel that is not even in my market is ridiculous.

One note I find interesting is that Fisher management is accessible and the issues can be discussed. Dish Network on the other hand puts up so many barriers to even discussing the issue with senior management is just ridiculous. They've run the same Charlie Chat from December probably 3,600 times now. Not saying Fisher is right or wrong, but at least they talk to us. Charlie screens the Charlie Chat calls and ceo@dishnetwork.com is screened as well. No one, but no one talks to senior management.

Again, Dish is losing subscribers because of its arrogance.

I don't disagree with the lack of communication from E* being a problem. From E*'s point of view, Fisher is harrassing them with a frivolous lawsuit. E* must feel that if it separates the two issues it loses leverage over Fisher. Also remember that Fisher started out demanding a big increase in carriage rates and suing E*. While what Fisher says in its statements may be true, there is no way to really verify any of it as E* usually doesn't comment on negotiations or litigation. I'm not defending E* as I don't have access to the details, but I do know how absolutely craptastic and idiotic some of the station management is I've had to deal with at times. I've had them lie right to my face about something we discussed on the phone a half hour before. The consumer always gets caught in the crossfire in these disputes. Both sides count on it to bring pressure to bear against the other side. It's unfortunate, but it is what it is. Honestly, if I were in your place, I'd likely go to D* if it wouldn't cost me an arm and a leg to do so.
 
A few things to note:

1. Dish is profitable, Echostar is not. The "profits" are not really there. Sats did have a few one time write offs totaling about $650m. Charlie is just moving money from one pocket to the other.

2. 102k is not really a meaningful number. What segment of customers made up that number. Were they all minimum subs or are they losing the big subs? 102k subs that were late payers and unprofitable would be a good thing to get rid of, 102k of AEP+HD+ subs would not be good.

3. Dish is losing customers while other companies are gaining them. It is not just the economy, Dish is losing its competative edge.

Well, very few high-end subs end up getting Dish Network in Indianapolis due to the locals situation. I'm sure the same can be said for Vegas, Cincy, Columbus, New Orleans, and other big markets that they've ignored until recently. I know of a bunch of people I work with who have signed up with DirecTV in the past few months, but none have gone with Dish. It's too bad, since Dish's equipment is, in my opinion, much better and much more innovative.

Even more people I know have signed on with UVerse and are (for some reason unknown to me) happy with that decision.

Dish has claimed they were the "low end" provider for a long time, so maybe that lets them justify the loss of subs during a recession.
 
The reason why their net income was up was due to the fact that they had to add fewer customers to contribute to the subscriber loss. If they added fewer customers then they did not have the costs involved with signing up new customers. This is good short-term, bad long-term. Eventually it will go the other way if they keep losing subscribers.

Another thing to consider is that Dish Network has been canning a lot of retailers lately that they state have committed fraud. I am sure this has contributed to fewer subscriber additions but also helped save the company money not having to pay full commissions acquring the same subscriber twice.

In today's 10K report, E* said 08 sub acquisition cost (SAC) was $720 per sub, and 07 SAC was $656 per sub.

Had E* broken even without the 102K net sub loss, the additional SAC cost would be another $6.5M for Q4, that would have only lowered its net income increase from 24% to about 20% compared to Q4 07. Not even considering the additional revenue from those 102K new subs that is.
 

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