DBS

DISH Network Launches DishMEXICO Programming Package

Bernie — Wed, 19 Nov 2008 10:02:13 -0500

ENGLEWOOD, Colo., Nov 19, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- DISH Network Corporation (Nasdaq: DISH), the third largest pay-TV provider and digital transition leader, today launched DishMEXICO, the first programming package in the United States designed specifically for Mexicans.

DishMEXICO has more than 50 channels and features some of the most popular Mexican networks such as Univision, Azteca America, Galavision, Teleformula, Telefutura, Telehit, De Pelicula, and De Pelicula Clasico, plus six Latino music channels including Viva Mariachi, Fiesta Mexicana and La Frontera. Read More ...

DISH Continues to be Victim of Competitive Environment

Bernie — Mon, 10 Nov 2008 10:59:36 -0500

DISH Network reported quarterly results today and they weren’t pretty. For the second quarter in a row, DISH actually lost subscribers – 10K last quarter, compared with 25K in 2Q08. In an environment where most cable and telcoTV providers continue to see growth in digital subs, DISH is the odd man out, and is apparently falling victim to their competitor’s prowess. Factors including a bad economy and DISH’s loss of AT&T as a distribution partner which impacts them long before the formal partnership actually ends in February 2009 played a role. The lack of a true triple play bundle is apparently hurting them more than their main competitor, DirecTV, who added 156K subscribers during the same quarter. What’s more disturbing for DISH is if they can’t gain subscribers at their competitor’s expense given their “value” reputation in tough economic times, when can they? DISH says they’ll have to increase their marketing efforts to turn things around. Will that be enough?

DISH Network Expands MPEG-4 Advanced Delivery System to Reach 32 Markets

Bernie — Wed, 15 Oct 2008 23:29:42 -0400

ENGLEWOOD, Colo., Oct 15, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- DISH Network Corporation (Nasdaq: DISH), the nation's third largest pay-TV provider and the digital television leader, today announced it will begin transmitting the industry's most advanced MPEG-4 delivery system to consumers in 11 additional markets in the eastern half of the United States. Now, consumers who sign up for DISH Network(R) in 32 markets will receive all standard and high definition programming in the MPEG-4 Advanced Video Coding Standard, which provides the best picture quality on any TV. In August, DISH Network became the first pay-TV provider to offer all-MPEG-4 service. Read More ...

AT&T and DirecTV Reach Partnership Agreement

Bernie — Fri, 26 Sep 2008 18:21:56 -0400

AT&T and DirecTV announced an agreement where AT&T will resell DirecTV services as a part of their “AT&T Advanced TV” video portfolio. The agreement will begin after January 31, 2009, when AT&T’s current agreement with DISH Networks expires. It’s a big, although expected, blow to DISH Networks, who had great success with leveraging their AT&T partnership for subscriber growth. Observers from afar could conclude that AT&T stopped aggressively marketing their DISH bundle in favor of U-verse long ago, which certainly contributed to DISH’s slowing subscriber growth, culminating with an actual decline in subscriber counts in 2Q08.

"Our focus is on providing customers with a better TV experience than cable," said Jeff Weber, AT&T vice president-Video and Entertainment in a company statement. "AT&T | DIRECTV complements our premier AT&T U-verse TV service and gives customers another great choice for state-of-the-art, 100 percent digital programming." DirecTV now has a virtual coup with “bell company” telco partnerships, including agreements with Verizon, Qwest, and AT&T. DISH has current resale agreements with large independents, including EMBARQ, Windstream, and CenturyTel. Now the real question – how long before AT&T buys DirecTV?

Will MPEG-4 Help DISH Stop the Bleeding?

Bernie — Mon, 25 Aug 2008 22:53:36 -0400

DISH Networks has made much noise with HD recently, culminating with their launch of an all HD package, branded TurboHD. Now comes word that they are the “first” pay-TV provider to go all MPEG-4 with standard and high definition programming. “New customers in 21 designated markets in the eastern half of the U.S. who sign up for any DISH Network HD package will be the first in the nation to receive the industry's most advanced delivery system on all televisions connected to DISH Network service,” said DISH in a company statement. The moves come on the heels of a couple dismal quarters for DISH, including 2Q08, where they lost subscribers for the first time in history.

So will these moves be enough? Maybe. You have to give DISH credit. They faced a major setback in HD earlier this year when they lost a satellite shortly after launch. They’ve managed to get past that hurdle. The MPEG-4 announcement makes for a great press release, but I’m not sure how much of an impact it will have on everyday consumers and their choice in pay-TV service. The TurboHD offering has a better chance of moving the needle for them. In addition, they announced new value programming options of $10/month and $20/month, tied to the DTV transition, echoing similar DTV exploitation strategies being pursued by cable competitors. DISH is feeling competitive heat from all angles, including telcoTV providers. It appears as if they are making some real efforts to meet those competitors head on, and reverse the trend of the past two quarters. Will it work?

DISH Networks is the Biggest Loser

Bernie — Mon, 04 Aug 2008 22:24:13 -0400

Sorry DISH, this isn’t a reality show. DISH revealed their first ever quarterly loss of subscribers, losing 25K subscribers in 2Q08. Seems like the competitive heat continues to rise for them. They’re losing subscribers to the competition, but also to an anemic housing sector, where slower housing starts and soaring foreclosure rates are creating a perfect storm which negatively impacts subscriber growth. It will be interesting to compare these results to DirecTV’s, since DISH cites HD competition as a reason for their decline as well. It makes their HD announcement from earlier this week all that more important. DISH will have its challenges to reverse the trend. It’s particularly scary for them because they are seen as a “value” play against their competitors. If these hard economic times don’t push subscribers to DISH over their more expensive competitors, what will?

AT&T Fires DISH: Let the Sweepstakes Begin

Bernie — Tue, 01 Jul 2008 22:56:12 -0400

AT&T notified DISH Networks that it will sever their existing resale arrangement at the end of this year. AT&T has been reselling DISH’s video services since 2003 and expanded the relationship further after their Bellsouth acquisition. It’s widely believed that through this move, AT&T is forcing DISH’s hand into a bidding war with DirecTV for a long term resale arrangement with them. AT&T will need a DBS resale partner, just like every major telco in the U.S. currently has. Despite all the hype surrounding U-Verse, AT&T will need a DBS partner to field a competitive triple play bundle for years to come. Even after the current billions of dollars that are committed to U-Verse have been spent, it will still only reach a large minority of AT&T customers. The mid to long term strategy for AT&T and other telcos is to use DBS to fill the gaps. Of course, AT&T may have something else up its sleeve as well – a possible acquisition of DirecTV. Is this DISH development a pre-emptive merger move, with DirecTV being the acquisition prize?

DirecTV: TelcoTV Gains are Unsustainable

Bernie — Thu, 29 May 2008 22:52:11 -0400

Chase Carey, CEO of DirecTV, says that they've felt the competitive impact (certainly not as much as DISH Networks) from telcos and their video offerings. But he's not too worried, because those gains, by his estimation, are unsustainable. Carey asserts that the discounts and promotions offered by telcos to grab video market share can't be continued, and that consumers are getting savvier about triple play bundles and the promotional pricing tied to them. There's certainly some truth to that, but its funny hearing it from a DBS industry that historically had very high (maybe the highest) subscriber acquisition costs when they were in the thick of taking market share from the cable industry. Maybe it's too early to tell, but it appears that strategy worked for them, since they now collectively have roughly one third of the video subscription market. Why then, can't telcoTV players follow suit? Carey offered his comments at a Lehman Brothers Wireless and Wireline Conference in New York City on Thursday. Carey said he's quite comfortable with DirecTV's position relative to its competitors. He says DirecTV is faring quite well and their successful HD market lead is paying dividends.

Telcos: More Net New Video Subscribers Than DBS

Bernie — Tue, 27 May 2008 22:52:12 -0400

An important milestone was reached for the first time last quarter. Telcos like AT&T and Verizon collectively added more video subscribers than DBS providers. AT&T and Verizon collectively added 411K new video subs, while DirecTV and DISH added only 310K. DBS has historically been the leader in new net video subscriber additions for the past few years, mostly at the expense of cable companies. Expect that trend to change. TelcoTV providers will probably take that quarterly “growth crown” for the next few years, as they ramp up their triple and quad play offerings. In fact, as Investors Business Daily accurately points out, telcos haven’t even begun rolling out in the largest cities yet. As they do, their growth rates should accelerate. Verizon’s recent news about offering FiOS in New York City, should it actually materialize, will be a good indicator on the growth impact caused by extending their reach into larger cities.

Interestingly enough, DBS providers are taking a double hit from the telco’s video progress. A good portion of the new telco video adds are coming at the expense of DBS, as evidenced by DISH’s poor first quarter for net new adds. In addition, telcos are slowing down there DBS resale efforts (AT&T – DISH and Verizon – DirecTV), as they ramp up their own video efforts. Those telco resale arrangements have been a good source of growth for DBS providers. As their telco partners get distracted with their own video launches, DirecTV and DISH will have to work much harder to replace those lost resale additions. Part of DirecTV’s strategy is to try to attract higher value subscribers with advanced feature portfolios and more robust HD content packages, hoping their higher ARPU will help replace revenues lost by smaller gains in net new subscriber additions.

AT&T Ditches DirecTV for DISH Networks

Bernie — Thu, 03 Apr 2008 11:15:55 -0400

AT&T has announced they are expanding their DISH Networks resale relationship to their former Bellsouth territory. Bellsouth had a resale arrangement with DirecTV, and AT&T let it expire after their acquisition of Bellsouth. AT&T has slightly over 2 million DBS subscribers from both their DirecTV and DISH resale arrangements. AT&T has also said they will reevaluate their entire DBS resale strategy in 2009.