DISH Network Announces Third Quarter 2011 Financial Results

[dare2be]

If this is seriously the philosophy of this company they are toast.

I don't see that as their philosophy, seeing that they advertise their packages as being the lowest in the industry.

 

[teneightyp]

I don't see that as their philosophy, seeing that they advertise their packages as being the lowest in the industry.

Exactly. That's why they are toast.

 

[navychop]

They're doing what D* did- shedding low end customers. They will grow again, especially when they get BBMP working better, when they run a big ad campaign touting it & other aspects of Dish, and when they bring online some things planned for the future. Who knows- the XiP813 might have some super feature that draws customers.

We should not look just at quarter to quarter. That short sighted approach, so common nowadays, is bad for companies over the long run. Dish is taking a longer term view, and that is good. Just because they lose subs for a few quarters does not mean they will continue to lose subs over the long term.

And just because some of us think the higher extra receiver fees are too high, that doesn't mean they are. People with more boxes, and fancier boxes, should pay more. It's a question of how much more. So far, it seems to have been a financially smart move on Dish's part, even though it hits me in my wallet. And I only have two boxes.

Don't get me wrong, I think Dish has too many fees and it's too complicated to figure out your bill. But they still don't have as many fees as my local cableco. And who knows how many fees Fios has, because I can't get a sales rep to give me a straight answer. So it's not unique to Dish.

 

[goaliebob99]

Getting rid of less desireable low-profit customers (customers with minimum programming packages), who are often the first customers to leave since they don't have the "Everything" package and multiple receivers; keeping high-profit customers and raising fees; also, adding customers is expensive (hundreds of dollars per)...no new customers = no new customer acquisition expenses.

But they are not doing that..... they are shedding the high profit ones with those DVR fees. I would not spend 60 plus dollars a month to have a DVR on every tv in the house. Right now I have that with D* and save more than what I would if I had dish.

 

[Teehar]

Definitely not a good trend for Dish.They had big $5 increase this past March and I'm sure that helped with the profit margin.However whats going to happen next year with the price freeze in effect?

 

[nelson61]

892 million dividend.

Charlie punched his ticket.

 

[CK SatGuy]

I don't see that as their philosophy, seeing that they advertise their packages as being the lowest in the industry.

Yeah, but I think Joe Clayton has been wanting to get rid of that image as being the cheap provider.

 

[Mr Tony]

If a company loses subs and profits is understandable, but how can a company lose subs but gain profits? Where are the profits coming from?

here is an example

a customer with Welcome Pack cancels their account. There goes one lost sub and 14.99
Meanwhile another customer adds a 722 to their account that has a 722 already. There is a 17.00 extra receiver gain

Dish loses one sub and profits $2.01

 

[nelson61]

DTV has the "season Ticket" without that new subs would be flat

Directv had their call last week. They said the sports promotion results were spectacular but cost $300 per customer. Then, they added that they would know if it was a good idea a year from now when the promotion benefits expire. Must be like the Dish/TIVO war where they talked about "sticky" customers (once you get them, they tend to stay).

 

[goaliebob99]

Directv's new promotion is HD for every tv. That's going to be a big thing I think.

 

[Bobby]

They, and Dish, can already do that, with a receiver for every TV....

 

[KAB]

As per usual, intramural CEO football.

 

[cave1376]

If YOU were CEO at E*, what would you do to keep and add subs and keep up or improve profits?

 

[navychop]

The goal is profit, not number of subs.

 

[navychop]

But they are not doing that..... they are shedding the high profit ones with those DVR fees. I would not spend 60 plus dollars a month to have a DVR on every tv in the house. Right now I have that with D* and save more than what I would if I had dish.

Got anything to back that up? From their profit picture, this would not seem to be the case.

 

[cave1376]

The goal is profit, not number of subs.

You need subs to make a profit. If you lose subs, then eventually you will lose profits. By losing subs, the remaining subs will have to pay for the loss of subs be it by higher equipment fees or program prices, subs will pay. If you add subs and keep them, you will make a profit. By keeping and adding subs, you will be able to keep prices low which will help in keeping and adding subs.

 

[goaliebob99]

Got anything to back that up? From their profit picture, this would not seem to be the case.

Yea ask scott about how many hddvrs he had versus how many he has now!

Sent from my iPhone using SatelliteGuys

 

[stardust3]

Dish ain't going anywhere anytime soon. Even though the continued sub loss is not good they are still #3 as a video provider. Comcast is the big daddy & D* #2. What they really need is some good management & to boost morale in their own organization. Eventually these reports would start showing a gain again.

 

[navychop]

You need subs to make a profit. If you lose subs, then eventually you will lose profits. By losing subs, the remaining subs will have to pay for the loss of subs be it by higher equipment fees or program prices, subs will pay. If you add subs and keep them, you will make a profit. By keeping and adding subs, you will be able to keep prices low which will help in keeping and adding subs.

The point some of us are trying to make is that you can lose some subs and come out ahead. No one is saying it will go on indefinitely. It will go on until some equilibrium is reached. They are trying to maximize profits, not subs. Obviously, they need to keep some subs- just not all of them. And the sub count will increase again one day. It is quite possible to add subs and lose money- some cost you too much to be worth keeping. Sometimes in business, you need to "fire the customer." It is better to lose/get rid of customers you lose money on.

IOW, more subs does not equal more profit. It's WHICH subs you want to keep.

 

[navychop]

Yea ask scott about how many hddvrs he had versus how many he has now!

Sent from my iPhone using SatelliteGuys

Anecdotal. Since profits went up while sub count went down, that is a strong indicator that they are making more per sub. That indicates people with higher bills. Seemingly, people with more DVRs.