Dish Network just reported strong financial gains from first quarter this year, and the company says its top line meets the Zacks Consensus Estimate, with the bottom line even beating it.
Still, the traditional business model has been weathering lots of competition from OTT video services, which give streaming offerings of a more stripped down and yet more affordable kind. By the time the first quarter drew to a close this year, Dish Network brought in around 13.874 million subscribers to pay-TV, compared with the 14.013 million it raked in the same time last year. The company also lost 23,000 subscriptions in the pay-TV department in the past quarter, compared to the 35,000 it gained in the corresponding quarter last year.
In addition, Dish Network will be facing stiff roadblocks following the recent TWC-Charter merger, which went through earlier this month. The completed deal has raised Charter to second position among the largest MSOs, right behind Comcast. The post-merger company has a subscriber strength of around 24 million, and chances are it would cut down network bandwidths for running third-party based streaming apps, which can be bad for Sling TV.
Dish might not be able to capitalize on its top-line growth to the maximum as well, because of the fact that it has been failing to get a deal with one of the wireless operators that would allow it to use nationwide wireless network. On top of this, there is the chance that somewhere down the line; Dish Network’s margins could be affected in the event that the company was unable to bring you long-standing programming contracts, which is not something in the pay-TV arena.
Still, Dish Network has a large amount of spectrum, considered to be the most decisive factor among wireless networks way most experts in the industry. So this may prove to be one of the company’s strengths in the coming months. Dish has long been the leader when it came to low-prized TV packages, but it seems that is about to change in favour of new premium services, which in turn can bring down subscriber churn rate for the MSVP. Also in play is their recent launch Sling TV, which is a form-breaking venture into internet TV. The new service has also helped the company minimize a good portion of the losses sustained in the legacy pay-TV area.
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