Articles for Dish Network

Dish Network Updates: Open To Acquisition, Launching Broadband

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Friday, January 20th, 2012 by

In the past couple of weeks and during the Consumer Electronics Show, Dish Network (NASDAQ:DISH) made some notable announcements. Out of these, two strategic announcements are of great significance. Firstly, the company stated that it has entered into a partnership with ViaSat to offer broadband service to its customers. Under the partnership, the company will be bundling its pay-TV services with ViaSat’s high-speed satellite broadband with bundles starting at around $80 per month. The company hopes to revive its subscriber trends with this move and additionally tap into rural market of about 8 to 10 million subscribers. Dish Network has an advantage over cable companies such as Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC) in terms of rural reach due to its satellite medium. Thus the new partnership can open more revenue opportunities in rural regions as well as help it expand in urban areas.

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Dish Shows Big Gains in 2011 But Needs Sub Gains, Wireless Deals for Next Leg Up

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Thursday, January 19th, 2012 by

Dish Network’s (NASDAQ:DISH) stock has gained about 50% since beginning of 2011. The primary reason behind the company’s stock rise has been settlement of its patent dispute with TiVo and introduction of Blockbuster’s movie services for its subscribers. Nevertheless it has continued to struggle with subscriber gains whereas its competitor DirecTV (NASDAQ:DTV) has enjoyed quite the opposite. Not only has DirecTV poached subscribers from Dish Network, telecom operators such as AT&T (NYSE:T) and Verizon (NYSE:VZ) have also lured some subscribers with their U-Verse and FiOS services.

Our price estimate for Dish Network stands at $30.88, implying a premium of just about 5% to the market price. We believe that while Dish’s stock has gained much of the value justifiably over the course of the previous year, there is still scope of slight improvement as subscriber trends could slightly improve going forward.

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Dish Digs in Heels on DVD Rental Window, Shows Confidence in Strategy

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Tuesday, January 17th, 2012 by

Dish Network (NASDAQ:DISH) acquired Blockbuster in 2011 when the latter filed for bankruptcy. The idea was to tap into lucrative video rental market, which is currently dominated by Netflix (NASDAQ:NFLX), as well as to enhance its overall service to stop subscriber losses. Q4 2011 results are likely to showcase the extent to which this strategy has been successful. While we don’t have a strong view on subscriber trends given the volatility in Dish’s subscriber performance, we believe that Dish is committed to improving the service for its subscriber that ultimately helps build engagement and attract users. After a series of disputes with content owners over their demand for increase in carriage fee, Dish’s refusal to double the 28-day DVD rental window for Warner Brother’s DVDs is the latest example. Warner Brothers movie studio is owned by media company Time Warner (NYSE:TWX)

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Dish Network Continues To Fight Programming Blackouts

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Thursday, December 29th, 2011 by

Given all the recent news about the customer satisfaction survey concerning internet retailers, it is worthwhile to examine where Dish Network (NASDAQ:DISH) stands in this respect compared to peers such as DirecTV (NASDAQ:DTV), Comcast (NASDAQ:CMCSA) and AT&T (NYSE:T). Dish has dealt with certain issues related to network carriage agreements, some of which have resulted in programming blackouts, in the past that have directly impacted its customer satisfaction, and it seems as though these issues haven’t gone away.

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Dish Could be a Key Beneficiary of AT&T’s Hunt for Spectrum

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Wednesday, December 14th, 2011 by

Adding to the possible dramatic outcomes of AT&T’s (NYSE:T) attempted T-Mobile deal, Dish Network’s (NASDAQ:DISH) CEO Joseph Clayton openly announced that the company is looking to diversify into mobile by teaming up with an existing wireless carrier. Dish acquired some wireless spectrum earlier this year in a couple of deals with smaller wireless companies, DBSD North America and Terrestar Networks, and is looking to put this spectrum to use “to create a national wireless network, video, voice and data”. Dish adds another name to the list of companies to which AT&T may look to sell some of T-Mobile’s assets in order to comply with regulatory concerns.

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Dish Network Updates: Ready for T-Mobile Spectrum Deal When AT&T Pulls Bid

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Tuesday, December 13th, 2011 by

The last couple of weeks saw a temporary rise in Dish Network’s (NASDAQ:DISH) stock, perhaps influenced by Verizon’s (NYSE:VZ) $3.6 billion deal for acquiring AWS spectrum from Time Warner Cable (NYSE:TWC), Comcast (NASDAQ:CMCSA) and Bright House Networks. Verizon’s offer indicates that Dish Network’s spectrum could be worth $10 billion, according to one analyst. If that’s the case, the value is clearly not reflected in Dish Network’s current price. The spectrum assets acquired from DBSD North America and Terrestar are valued at less than $3 billion on Dish Network’s balance sheet. Nevertheless the company has clarified that it does not plan to make money by selling its spectrum.

See our full analysis for Dish Network

In fact, Dish Network has stated that if the AT&T (NYSE:T) and T-Mobile’s deal doesn’t go through, it is likely to partner with T-Mobile and thus put its spectrum to use. T-Mobile is in need of spectrum, and Dish could charge it a royalty for utilization and thus effectively connecting itself with a high growth area of mobile broadband. Whatever Dish has done so far in terms of asset acquisitions, has made the company itself an attractive acquisition target.

In an unrelated development, Dish Network and Nexstar reached a re-transmission agreement for its local news telecasts and programming.

Our price estimate of $30.88 for Dish Network, implies a premium of almost 20% to the market price.

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Dish Updates: Dividend Gives Stock a Lift, But Market Wants to Know the End Game

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Monday, November 21st, 2011 by

In last couple of weeks, Dish Network’s (NASDQ:DISH) stock has climbed primarily driven by company’s announcement to pay dividends, followed by an anticipated decline after the dividend payment. Nevertheless the stock still stands above where it was prior to earnings. This happened despite company’s disappointing results where it lost 111,000 subscribers while its rival DirecTV (NASDAQ:DTV) posted strong gains. It seems that investors have rewarded the company’s stock slightly for giving cash to shareholders instead of continuing to spend it on acquisitions like it has done in recent past. We think that the investors are perhaps not rewarding Dish enough for its long-term strategic acquisitions that might help the company in turning-around subscriber losses, which primarily stem from telcos like AT&T (NYSE:T) and Verizon (NYSE:VZ) locking up subscribers with their attractive bundles.

Our price estimate for Dish Network stands at $30.88, implying a premium of about 25% to the market price.

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Despite Weak Results, Dish Network Should Regain Market Share in 2012

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Monday, November 14th, 2011 by

Dish Network’s (NASDAQ:DISH) posted its Q3 2011 results recently. While subscriber losses continued, the company is holding a more optimistic view about next quarter. While rival DirecTV (NASDAQ:DTV) had record subscriber additions, Dish lost 111,000 net subscribers in Q3 2011. The loss was an improvement over Q2 2011, but still nowhere near DirecTV’s degree of improvement as the gap between the two companies widened. The other service providers that have gained at the expense of Dish are AT&T (NYSE:T) and Verizon (NYSE:VZ).

Our price estimate for Dish Network stands at $31, implying a premium of about 30% to the market price.

See our full analysis for Dish Network

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Dish Network Q3 Preview: What We’re Watching

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Friday, November 4th, 2011 by

Dish Network (NASDAQ:DISH) lost about 135,000 subscribers last quarter and subscriber trends will again be the primary focus when the company reports its Q3 results on Monday. While the cable companies like Time Warner Cable (NYSE:TWC) continue to lose video subscribers, satellite companies like DirecTV (NASDAQ:DTV) and Dish have done comparatively better. Nevertheless Dish has had its own share of problems which it plans to address through long-term investments such as Blockbuster and wireless spectrum to launch broadband service.

Our price estimate for Dish Network stands at $29.32, implying a premium of about 25% to the market price.

See our full analysis for Dish Network

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Dish Weekly Recap: Outlook Remains Solid in Quiet Week

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Friday, October 7th, 2011 by

Dish Network’s (NASDAQ:DISH) stock, like many other technology stocks, suffered significantly in the past week due to concerns around economy in the U.S. and Europe crisis. However it recovered in the later half of this week with the broader market rally. We maintain our positive take on the company, with a $29.32 price estimate. Although there were no significant developments concerning the company this week, Dish did approach the FCC along with Sprint (NYSE:S) to speed up the hearing on AT&T (NYSE:T) and T-Mobile deal. This strengthens the fact that the company is taking a very active approach in shaping its long-term strategy which now revolves around a combination of mobile broadband, online streaming and pay-TV. We note that Dish recently launched Blockbuster’s streaming service, which will provide disgruntled Netflix subscribers with an alternatives.

As the TiVo dispute is a thing of the past, we see no immediate risk factors concerning Dish unless the U.S. economy slumps more quickly than expected.

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