Dish Network (NASDAQ:DISH) recently announced $1 billion of debt offering and, in a relevant filing, it disclosed its subscriber results for the latest quarter. Although the company will report its Q2 earnings in August, it reported in its recent 8-K filing that it lost 10,000 net subscribers. This is disappointing compared to the results of its last two quarters when the company turned around its subscriber losses and surpassed DirecTV (NASDAQ:DTV) in terms of net additions. However, Q2 is usually a slow season and the current figures still point to a significant improvement in comparison to Q2 of 2010 and 2011 when Dish lost 135,000 and 20,000 subscribers, respectively. 
What’s important is that the company is on the right path.
The acquisition of Blockbuster and focus on high quality subscribers seem to be paying off. It is important to realize that the pay-TV industry dynamics are changing and the companies will need to resort to multiple strategies that include competitive pricing, enhanced HD DVR services, streaming capability, remote access, multi-device access and bundling with other services. None of them can be successful on a stand-alone basis – gone are those days.
Our price estimate for Dish Network stands at $34, implying more than 15% premium to the market price.Notes:
- Dish Network’s SEC Filings [↩]