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    Dish Network 2Q profit rises, subscribers fall

    NEW YORK (AP) — More subscribers cancelled satellite TV from Dish Network Corp. than it gained in the latest quarter, which combined with results from competitor DirecTV means the U.S. satellite TV industry lost subscribers for the first time.

    Dish on Tuesday said it lost 135,000 net subscribers to end June with 14.1 million. It was the second-worst quarterly decline for the Englewood, Colo., company after the loss of 156,000 subscribers in the fourth quarter.

    DirecTV Group Inc. last week reported gaining 26,000 subscribers, its lowest result in at least four years.

    Together, the two companies lost 109,000 subscribers. The satellite companies have been adding subscribers for years, poaching many of them from cable companies. Now, however, they're hamstrung by their inability to offer Internet services, which the cable companies can.

    Dish blamed the subscriber flight on aggressive marketing and promotional offers and discounting from competitors, plus economic weakness.

    To remain competitive, Dish said Tuesday that it will be freezing prices through January 2013.

    Dish reported net income of $334.8 million, or 75 cents per share, for the three months that ended June 30. That's up from $257 million, or 57 cents per share, a year earlier.

    Analysts expected earnings of 79 cents per share, according to a poll by FactSet.

    Revenue rose 13 percent to $3.59 billion from $3.17 billion, driven by Dish's recent acquisition of the Blockbuster chain of video rental stores, which was in bankruptcy, and by price increases on TV service.

    Excluding Blockbuster, revenue was $3.34 billion, below the average analyst estimate at $3.38 billion.

    Dish shares fell 63 cents, or 2.6 percent, to $22.01 in morning trading.

     

    16 comments

    • HowieMandel  •  9 mths ago
      Tv in general is a waste. I obviously enjoy some, like old episodes of seinfeld and what not, but those are in boxed set. Too much money. Too many comercials. 100 bucks a month? 1200 a year?
      Since I fired TV, my family has done alot more together stuff in and outside of our home. Last christmas my child had to really think what she wanted for christmas, and i realized it was because for the last few years she has not been TOLD what to buy, by the television. Todays headlines make more sense tome as well, as now i actually read whole stories on the net versus the 1 minute in your face cnn bam, which is never the whole story, and usually has a slant.
      Get away from TV. Bet we do better as a society.
      • garrett1230 9 mths ago
        I can't help but laugh at the irony that you're preaching to everyone about dumping TV, but your user name is a TV personality (Howie Mandel). LOL!

        Anyway, congrats on setting yourself free from the shackles of cable/satellite TV.
    • Mike I  •  9 mths ago
      Im a cable tv installer and let me tell you. all services can work well, if you get an installer that knows what the hell he is doing, and wants to do the installation right.
      • garrett1230 9 mths ago
        So true. But unfortunately for me, I've been through 6 different cable tv installers and none of them wanted to do it right. The first one didn't install correctly and the other 5 admitted the first guy did it wrong, but they didn't want to take the time to completely remove everything and re-install it correctly. Comcast gave them too many jobs that all need to be completed by COB. End result is that I'm stuck under contract with cable that doesn't always work.
      • Jw C 9 mths ago
        Its not the installation thats the problem. Its the fact that they charge twice as much as the cable companies for the same service and then add a charge for each box that you have. I have four TVs in my house and the cable company doesnt charge me for those cable boxes.
      • Jesse 9 mths ago
        Cable here costs as much a Direct or Dish - in addition the service people for cable here are just plain - JERKS.
    • kwitty  •  9 mths ago
      Cable & satellite have been increasing steadily over the years and it's to the point where people have had enough. I have been a DirectTV subscriber for years and when I called earlier this year to lower my bill (promos are never offered to existing, only new) they said there was nothing they could do. So, I canceled my service. Low and behold they suddenly had a great rate they could offer me. I basically told them where to go. I have rabbit ears and Netflix and I'm very content and really don't miss satellite at all!
      • Jesse 9 mths ago
        Stay away two years and they will start sending you great offers just like a new customer. However - once they get you they will start increasing prices.
    • Scratchnpeck  •  9 mths ago
      "Dish blamed the subscriber flight on aggressive marketing and promotional offers and discounting from competitors, plus economic weakness."

      NO! Let me reiterate why I left Dish Network!
      1. Their programming sucks for the $ they expect.
      2. They raised their rates on me every year for the last 5 years.
      3. Their customer service SUCKS so badly that when you call all you get are Indian people who are rude and the problems don't get resolved.
      4. I found out that there is a lot more available on internet TV and I don't have to watch commercials if I don't want to or pay as much for what I get.
      5. Because of the previous troubles with them, I have NO PLANS of EVER returning to Dish network as a customer. I hope they go out of business because they deserve it.
    • AlbanyJim  •  9 mths ago
      Add internet high speed and I'd drop cable in a heart beat.
      • Jw C 9 mths ago
        LOL and you would encount the lag that goes with any space based internet connection. It takes a LONG time for that signal to travel from the ground to the bird and then back to the ground. Then you have the same 1200ms lag on the return trip
    • Sean Carr  •  9 mths ago
      Dish Network has been great for me, but I keep coming across stories of people who have had really bad experiences with them, there are some really funny vents about them here> .
    • Michael  •  9 mths ago
      I don't understand how direct tv had better results than dish network. While I have had consumer problems with both, dish network at least corrected their mistakes. Direct TV on the other hand just keeps on lying about everything, and things that don't even matter for the most part. Further, when lyinging to customers both in advertisements and on the phone, when the customer gets sick of it, then direct tv refuses to send mailers so you can send the equipment back and bills several hundred dollars for it and reports it to credit ratings. In my opinion direct tv should not be allowed to conduct business in the United States due to their fraud and lying to customers.
    • Ken  •  9 mths ago
      I am cancelling as soon as my contract expires!! Dish network promised me a rate for one year, then one month later raised the rate and said they were allowed to do that anytime, just read the fine print on contract. And every time it rains i have to turn off satellite and use my rabbit ears to watch local Tv. Oh and the HD picture is better with the rabbit ears then what i get over the satellite!
    • Crackhead Barry  •  9 mths ago
      Just got rid of Dish TV myself and Dish and Comcast are the, are all the same at ripping you off. I've had them all. Just bought a $75.00 HD Antenna, I get 60 stations most in HD and now watch all my favorite shows from when I had Showtime FREE on the web, along with many HBO, Starz, Series. Who needs Netflix when you can watch for free. Sat at home and watched Rise of the Plant of the Apes. Good flix. No more overpriced satellite bills for me.
    • Jesse  •  9 mths ago
      Typical cost per year - $1,000 - five years $5,000 - ten years $10,000 - put that money in the bank for tough times. Keep in mind satellite companies are trying to destroy free over the air stations. When they do - there will be no service except cable or satellite - or maybe internet. And - anyone notice - the cost continues to rise each year.
    • jennifer  •  9 mths ago
      Yes I can understand why the subscribers fell because Dish stinks!
      We switched to dish 8 months ago to save on tv...now we are paying more than we did to get basic channels, and our tv is suppose to be HD...well it isn't-- They came once and found that the dish was not set up for HD and supposedly it was fixed, but there is no different and Dish refuses to fix it. So we now have to carry on for the 2 years so we can drop them and go back to Direct TV!
      • F Voors 9 mths ago
        Are you sure your running HD cables from the HD box to an HD tv?
      • John 9 mths ago
        Drop 'em and sue
    • hotrodl  •  9 mths ago
      Five, six, or more comericals in a row, just #$%$ me off. Also 125 channels, and you watch maybe 10 to 12. Sorry, It's to expensive for what you are getting.
    • Lord Buckeye  •  9 mths ago
      Dropped satellite for Netflix, bit torrent etc. 4 months ago. Don't miss it at all.
    • t.  •  9 mths ago
      I've been a subscriber for nearly 13 years.I can't even get a new receiver box w/o paying for it.AND am paying almost $30 more a month than when we started. maybe you guys deserve it.
    • A Yahoo! User  •  9 mths ago
      We hated Dish Network and went back to cable. Dish constantly went down especially in stormy weather where we really need to be informed since we live in a community next to Joplin MO. At times service would be ok in one room but go off in another. We couldn't wait for our contract to expire so we could go back to cable. Never getting satellite again.
    • Sean H  •  9 mths ago
      NETFLIX is much better then cable or satellite because you can watch what you want
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