SkyFILES: Spoiling for a Fight

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SkyFILES: Spoiling for a Fight

by Michael Hopkins

Monday wasn't a banner day for DISH Network or the satellite TV business.

That day, DISH reported a loss of 25,000 customers for the second quarter, taking its total subscriber count (as of June 30) to 13.79 million. It was the first quarterly subscriber decline for the DBS side of the business since small dish services made their debut in the mid 1990s.

No doubt, DISH has witnessed better times. But don't think the company is trapped in an out-of-control downward spiral.

DISH Network CEO Charlie Ergen said efforts are in place to address three critical items: Piracy (expect a smart card swap soon), operations (Ergen said the company is now "answering the phones on time") and high-def competition (the company recently increased its HD channel count to 114).

The EchoStar XI satellite that launched last month could be operational by the end of the month. And with new capacity for high-def services, expect DISH to aggressively ramp up advertising and marketing efforts.

In fact, some of those pushes have already started, with full page ads appearing in newspapers touting DISH Network's recently-unveiled TurboHD. And given that holiday sales are approaching, the advertising endeavor will only get stronger before the close of the year.

But all of that shouldn't be what competitors must closely watch.

This is a company with a CEO who loves a good competitive challenge. Ergen relishes the role of the underdog. And it's a role he has kept playing since DISH launched services in spring 1996.

While DISH may be down, there's no quit in the company. The No. 2 small dish platform is spoiling for a fight, and competitors should keep an eye on what happens next with the company.
 
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