Sling TV Boosts Dish Subscriber Count -- Update
2019年11月8日 - 8:16AM
Dow Jones News
By Drew FitzGerald
Dish Network Corp. posted a surprise customer gain in the third
quarter as its internet-TV business overshadowed accounts lost on
the satellite side.
Overall, the company posted a net gain of 148,000 pay-TV
customers during the three months that ended Sept. 30, its first
such increase since 2017. That included a loss of 66,000
satellite-TV customers while internet-based Sling TV added 214,000
customers. Dish ended the period with 12.2 million pay-TV
subscribers.
Financial analysts expected the company to post a loss of
162,000 subscribers, according to an average of estimates compiled
by FactSet.
Dish's earnings have come under pressure in recent years as
satellite-TV customers drop their channel bundles in search of
cheaper alternatives. Some have stopped paying for live TV
altogether.
Rival channel bundlers have suffered more defections, however.
AT&T Inc. reported a loss of 1.4 million pay-TV customers over
the same third-quarter period, a figure that included customer
declines in its online TV service.
AT&T recently increased prices for its AT&T TV Now
streaming video service, while Sony Corp. said it would scrap its
PlayStation Vue streaming service. Dish has also raised Sling TV
prices, though its basic packages still attract cost-conscious
customers with plans as low as $25 a month.
Dish's earnings fell as it traded satellite subscribers for
gains at Sling TV. Its average revenue per user slipped to $85.29
during the quarter from $86.29 a year earlier.
Dish reported a third-quarter profit of $353.3 million, or 66
cents a share, down from $431.7 million, or 82 cents a share, a
year earlier. Revenue fell 6.7% to $3.17 billion.
Growth at Dish was under pressure last year as the company
fought with Univision over carriage rates. The two sides struck a
deal in March to restore the Spanish-language channels.
The company resolved a standoff with Fox Corp. earlier this year
that threatened the airing of National Football League games. It
continued to negotiate with Fox over carriage of its regional
sports networks. Fox Corp. and Wall Street Journal parent News Corp
share common ownership.
Other disputes have lasted longer. AT&T-owned HBO has been
unavailable through Dish or Sling for more than a year.
Dish executives said Thursday that cord-cutting helped boost
growth at Sling, which highlights the value of its "skinny" channel
bundles. Chief Executive Erik Carlson said he couldn't remember a
recent quarter in which the company hadn't entered a programming
spat with a channel owner as the company focuses on managing its
costs.
"We make hard decisions," Mr. Carlson said in a call with
analysts. "These are decisions that we've made to try to grow our
customer relationships in a profitable manner."
Mr. Ergen has focused much of the past few months on Dish's
planned wireless business. The still-unbuilt wireless network could
be bolstered by assets divested by Sprint Corp. if the cellphone
carrier is able to close its planned merger with rival T-Mobile US
Inc.
Dish said Thursday that it would raise about $1 billion through
newly issued shares to help pay for the new wireless venture, among
other uses. The company said Mr. Ergen, who owns about 52% of the
company, will fully exercise his rights to participate in the stock
offering.
Dish shares rose 3.5% to $34.69 Thursday. They have climbed
nearly 40% so far this year.
Write to Drew FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
November 07, 2019 18:01 ET (23:01 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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