1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Welcome to the new DBSTalk community platform. We have recently migrated to a community platform called Xenfono and hope you will find this change to your liking. There are some differences, but for the most part, if you just post and read, that will all be the same. If you have questions, please post them in the Forum Support area. Thanks!

Interesting article that mentions Dish Networks profit margin

Discussion in 'General DISH™ Discussion' started by tsmacro, Nov 4, 2013.

  1. tsmacro

    tsmacro Hall Of Fame

    2,364
    54
    Apr 28, 2005
    East...
  2. Stewart Vernon

    Stewart Vernon Leapin' Lizard Staff Member Super Moderator DBSTalk Club

    21,432
    358
    Jan 7, 2005
    Kittrell, NC
    That kind of fits why many of us have been on Dish's side in contract disputes. While Dish might raise rates for other reasons... they absolutely would raise rates on contract hikes... because Dish just isn't operating in a range that allows them to absorb whatever price a channel wants to ask for in any given negotiation.
     
  3. SDWC

    SDWC AllStar

    125
    1
    Dec 14, 2005
    It's interesting that the margins are so very different between the two satellite providers. With consumer prices for packages fairly similar, the cost structures must be significant between D* and E*. Perhaps the volume of subscribers for E* isn't high enough to cover all of their fixed operating costs. To novice buyers they look indistinguishable on paper. There has to be some opportunity for E* to improve efficiencies and get that number into respectability.

    Otherwise they'll have a tough time in the long term as carriage costs rise and their only recourse is to pass them along to the customer to maintain any margin at all. At a certain point they will then be perceived as a pricier viewing option and that's not a good thing.
     
  4. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

    44,862
    860
    Apr 17, 2003
    Michiana
    DISH needs to maintain their advertising reminding people that the average DirecTV subscriber is paying nearly $100 per month (for the latest quarter it is over $100 per month). That extra digit is a threshold that scares many people ... $100 for TV???

    The upper level DISH subscribers pay more than $100, but as long as their ARPU stays below DirecTV's they might as well use that to their advantage.
     
  5. phrelin

    phrelin Hall Of Fame DBSTalk Club

    14,884
    281
    Jan 18, 2007
    Northern...
    There are numbers the Fool is missing regarding Dish. You really have to evaluate Charlie's investment portfolio to really understand the whole Dish/Echostar picture.

    And throwing Comcast in there is truly mixing apples and lasagne. Comcast is a media conglomerate. It owns NBCU and Xfinity, both of which have multiple divisions, of which only one is cable television. I pay xfinity for my Internet service and through Dish for my NBC broadcast channel and cable channels like USA, CNBC, etc., plus for Olympic coverage,

    So far Dish has not paid to produce content, but rather to deliver content. It's a single mission.
     

Share This Page