Dish Network Loses More Subscribers in Third Quarter
User base shrinks by 29,000, while competitor DirecTV added 174,000 customers
NEW YORK - Satellite TV firm Dish Network lost 29,000 net subscribers in the third quarter, following a loss of 19,000 in the second quarter in the latest sign that the company's key target audience of budget-conscious consumers is cancelling their subscriptions.
It was a marked contrast to DirecTV's addition of 174,000 U.S. subscribers in the same quarter as reported on Thursday.
Dish on Friday also reported a third-quarter revenue gain of 11% to $3.21 billion. Profit multiplied to $245 million from $81 million in the year-ago period. Dish ended the quarter with approximately 14.289 million subscribers.
"The travails of the low-end consumer poured cold water on Dish's nascent recovery from the rough patch it had hit in 2009," said Sanford C. Bernstein analyst Craig Moffett in a note to investors. "…and, as any Seinfeld fan will recall, with cold water comes shrinkage," he added.