Dish and DirecTV subscriber growth slows

[Tom Bombadil]

Here's an excerpt from an article on how cable is starting to affect E* and D* subscriber growth.

DIRECTV and EchoStar report sharp sub growth declines
By Phillip Swann
TVPredictions.com

Washington, D.C. (August 10, 2005) -- For more than a decade, the satellite TV industry has been dishing it out, stealing customers from cable with a dazzling array of innovative features and services. DIRECTV and EchoStar, the nation's top two satcasters, each have amassed more than 10 million subscribers and done so at a breathtaking pace.

But there are signs that satellite's wild ride may have finally hit a roadblock. EchoStar this week reported that it added approximately 225,000 net subscribers in the second quarter, a 33 percent drop from the 340,000 subs it added in last year's second quarter. EchoStar CEO Charlie Ergen cited increased competition from telcos, cable and DIRECTV as one reason for the loss.

However, DIRECTV reported last week that its 2005 second quarter net subscribers dropped 45 percent to 225,000.

It should be noted that both satellite TV services also reported a profit for the second quarter despite the subscription dips. (Although the profits were largely the result of one-time tax and accounting benefits.) In addition, DIRECTV now has 14.7 million subscribers while EchoStar is at 11.4 million. The two companies are hardly headed to the poorhouse.

 

[goaliebob99]

I would expect this pace to actually gain during the fall/winter months.

 

[Purogamer]

It's not like every house is void of trees that block the signal, and it's not like cable isn't trying to catch up. It makes sense that it's not always growth for the satellite companies. I'm sure now that D* has dropped DVR prices, they will get subscriber growth. If E* adds significant HD channels they'll experience growth, etc...

 

[Stargazer]

I think sales will go up during the fall and winter.

 

[SummitAdvantageRetailer]

Yep, people don't watch as much TV as they do in the colder months. Cable will always have more subscribers in urban cities like in apartments and other homes with line of sight issues. But in rural areas, it's EASY to sell DBS there as long as there's locals for that market. One of the biggest hurdles in DBS is broadband Internet access. This bundled bill marketing works and people like one bill for everything: phone, TV, and Internet.

I wouldn't be surprised if power companies get into TV, phone, and Internet either. Then the bill will get consolidated even more. I don't expect gas companies to get into the field, though.

 

[Dish Dude]

yes and there is technologies in development where you can send phone, high speed internet, and tv over the power lines. Would be quite nice, but don't want to see that happen any time soon

 

[Cyre]

yeah, there may be a pickup in the fall/winter, but you all are missing the point. They are comparing quarter this year vs the same quarter last year, new subscribers have dropped. This is not a good sign, but could be a one time thing, or could be a start of a new trend. We will have to wait and see what the next quarter brings us.

 

[Stargazer]

When you say that you dont think that the gas companies would neve get into that field though it did get me thinking. We would have never thought 5-10 years ago that we would see broadband over power lines. Things are going to a molecular level especially with computers and electronics, perhaps they could figure out how to send data through atoms/molecules/etc. through the gas among other things that we cannot even dream of today. This would open up a whole new era. By that time everyone would probably be able to get broadband in some other way anyhow.