When telecom consumers “cut the cord” on television services they’re not just focused on cable TV services.
Just ask Dish Network, the second-largest satellite video services provider in the U.S.
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A case in point.
Approximately 552,000 Dish Network subscribers dropped their subscriptions in the first quarter, accelerating an ominous trend that saw Dish lose 268,000 subscribers in the fourth quarter of 2022. Overall, the company has seen its total customer volume fall from 9.75 million to 9.2 million since the first quarter of 2022.
Additionally, retail satellite TV revenues have fallen from $4.33 billion in Q1, 2022 to $3.96 billion in Q1, 2023. It’s not just satellite TV. Retail wireless net subscribers fell by about 81,000 in the first quarter of 2023, as well.
Whatever the numbers and their potential meeting, the Dish subscribers who pulled the plug have apparently pulled it for good.
“How much we can read into the rates of decline posted in a quarter this out of the ordinary isn’t entirely clear,“ said MoffettNathanson senior analyst Craig Moffett. “But it is beyond argument that the customers lost in the first quarter won’t be back. Trajectory aside, these declines are permanent.”
Numbers Could Be Worse
The numbers could also be even worse than Dish is letting on.
"It’s unclear whether this result would have been even worse had the company been fully able to process service-termination requests,“ Moffett added. “And it’s therefore unclear whether results in Q2 will be similarly bad or even worse. The company only indicated that cybersecurity costs were fully behind them and that all systems have been restored.”
Dish does have a Plan B. It’s possible pivot to 5G broadband wireless phone services.
Dish Has a Path
“We have a path and it’s not evident to people on this call, but we have a path and we have to execute on that and hope that it doesn’t get any worse in the marketplace,” said Dish chairman Charlie Ergen, in a recent conference call with analysts.
Dish stock price stands at $7.17 per share as of May 9. Shares are down 48.22% on a year-to-date basis.
