Dish Earnings Preview: Loss In Pay-TV Subscribers Will Be The Highlight Of The Quarter

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Dish Network (NASDAQ:DISH) is likely to report its Q3 2016 earnings in the upcoming week and we expect that its results will be once again marked by an accelerated loss in subscribers. Users are actively shifting to streaming services such as Netflix, and pay-tv companies are losing their subscribers rapidly. In response, Dish had launched its streaming service (called Sling TV) last year, which has managed to somewhat dilute the subscriber loss. However, once Sling TV subscribers stabilize, the loss in pay tv subscribers will become apparent. During the second quarter, Dish is estimated to have actually lost close to 330,000 pay-tv subscribers, but 49,000 new subscribers for Sling TV slightly offset the effect. Even though the change in subscriber count at the end of 2015 (-81,000) did not look too bad, subscriber losses are expected to accelerate as the Sling-TV novelty wears off.

Dish Q3 earning preview

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Dish Network
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