Dish Network added approximately 30,000 net pay TV subscribers in the third quarter, compared to a decrease of 13,000 in the same period a year ago and a decrease of 257,000 in the second quarter of the year.
The company announced early in a regulatory filing on Wednesday that it added approximately 214,000 Sling TV subscribers in its last quarter, ending September with 2.41 million Sling TV subs.
Dish also recorded a net decline of approximately 184,000 customers in its traditional Dish satellite TV business, ending September at 7.61 million.
Dish’s total number of pay TV users was nearly 10.02 million at the end of September, down from 10.98 million at the end of September 2021.
“Increases in programming costs have caused us to increase the rates we charge our subscribers, which in turn could result in our existing pay-TV subscribers terminating our service or potential new pay-TV subscribers choosing to not to subscribe to our service. Dish said in a regulatory filing. “In addition, even if our subscribers do not unlink our services, new and existing online content providers allow our subscribers to purchase some of the services they would have purchased from us in the past, such as pay-per-view movies. “
It added: “Our net pay TV subscriber addition, gross new Dish TV subscriber activations and Dish TV’s churn rate have been negatively impacted due to programming interruptions and impending programming interruptions related to the scheduled expiration. of program transportation contracts with content providers. On October 6, 2021, Tegna Inc. removed its channels in 53 markets from our Dish TV programming schedule. On February 4, 2022, we and Tegna signed a new programming transportation contract, restoring those channels to our program for Dish TV programming.Although subscriber demand for local network stations has declined in recent years due to, among other things, the fact that programming is available to subscribers through alternative methods, including, but not limited to, over-the-air antennas , no warranty can be made that the removal of these or other channels will not materially affect affect our business, our results of operations and financial condition or otherwise disrupt our business. For example, the Walt Disney Company removed its channels, including locals in eight markets, from our Dish TV and Sling TV programming from October 1, 2022 to October 3, 2022, after we were unable to reach a contract renewal agreement. before the expiry of the programmed contract of carriage. The channels were reinstated when we reached a preliminary contract extension agreement with Disney and we continue to negotiate the terms and conditions of a new program transport contract.”
Dish’s retail wireless subscribers grew by about 1,000 in the third quarter, compared to a decline of 121,000 in the same quarter a year ago. The company closed September with 8.01 million wireless retail subscribers.
Dish’s third quarter revenue declined 7.9 percent from $4.45 billion to $4.10 billion, while profits fell 35.2 percent from $557 million to $412 million.
Dish is led by President and CEO W. Erik Carlson and Chairman Charlie Ergen. This summer predicted the latest industry consolidation in the streaming arena, where Sling competes. “We’re profitable, and most people aren’t,” Ergen said. “So I think we’re well positioned there for things that can happen. But we’re smart enough not to chase customers who won’t be profitable.”
