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Guest Message by DevFuse

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Interesting article that mentions Dish Networks profit margin


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4 replies to this topic

#1 ONLINE   tsmacro

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Posted 04 November 2013 - 02:42 PM

I know it's been talked about in other threads here about how profitable Dish is or isn't. According to the following article it's profit margin is an extremely thin 1.79%! The article mostly focuses on DirecTv and how it compares to it's main competition.

 

http://www.fool.com/...to-slow-it.aspx




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#2 OFFLINE   Stewart Vernon

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Posted 04 November 2013 - 03:21 PM

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.


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#3 OFFLINE   SDWC

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Posted 08 November 2013 - 02:53 PM

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 OFFLINE   James Long

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Posted 08 November 2013 - 10:02 PM

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.
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#5 OFFLINE   phrelin

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Posted 09 November 2013 - 01:14 AM

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.

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