Via Directsattv.com - DISH 3Q: Ouch!
As the economy slips and consumers get more perspicacious with their choices, many satellite providers are finding it difficult to compete with DIRECTV's cheap and expansive satellite TV packages. In particular, Dish Network continues to struggle, as the digital broadcast satellite company reported customer losses of over 29,000 this quarter. According to research analyst Craig Moffett, this severe deterioration in revenue and growth, diminishing DISH's overall worth by as much as 35.5%. It is fairly easy to see why. When you
compare DIRECT and DISH , DIRECTV offers a broad swath of channels that DISH simply cannot afford. DIRECTV also has a number of exclusive deals with specific broadcasters and sports leagues such as the MLB and the NFL. This was highlighted by the recent contract squabble between FOX and DISH, where many DISH and cable subscribers were unable to watch regular and postseason baseball until the disputes were resolved.
When you compare DIRECT and DISH , however, you must also take into account price. Despite its precipitous revenue loss, DISH still managed to earn over 3 billion due to its persistent rate increases. Many subscribers were incensed by the rate hikes in lieu of the negotiations with broadcasters and constant blackouts, yet DISH remained firm in its economic model. DIRECTV, on the other hand, continued to push in the opposite direction, finding ways to keep their packages flexible and lower overall prices to meet the demands of lower income subscribers. So while the DISH network is still leagues away from collapsing, its fiscal policy, government tax policy, and the loss of TiVo to DIRECTV could severely impact their monetary health.
In an interview, founder Charlie Ergen conceded that when you compare DIRECT and DISH , the latter has yet to find the right marketing strategy. He noted that the cost of acquiring new subscribers, when factoring in advertising, marketing, referral bonuses, and programming giveaways, is close to $1000 per subscriber. Not to mention the difficulties faced by the entire industry, as satellite providers are charging customers for content that competitors are offering for a discounted rate. When factoring in the affordability, flexibility, and total offering of their satellite TV packages, the reasons why DISH is floundering and DIRECTV is thriving are relatively transparent. This in turn seeps into overall customer satisfaction, which results in a further drop in sales and revenues. For a more complete satellite TV package, customers should turn to DIRECTV. Call 866-310-4985 to compare DIRECT and DISH today.
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