TV Answer Man, I can’t understand how Dish stays in business. They are always losing channels in blackouts because they don’t want to pay for them. How can they keep the subscribers when they are losing channels all the time? — Juan, Reno, Nevada.
Juan, Dish has lost hundreds of channels over the last few years due to carriage disputes, far more than any other pay TV provider. (The latest: Dish last night lost NESN after it could not reach a new carriage agreement with the regional sports network.)
Of course, it has added many of those channels back after weeks, months and sometimes even years of not carrying them. But the frequent programming interruptions would seem to be enough to drive millions of subscribers away every year.
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However, Dish has lost ‘just’ 540,000 subscribers in the past year. While that’s not anything to brag about, it’s one-third of Comcast’s video sub losses over the last four quarters. (Comcast lost slightly more 1.5 million in the same time period.) And Comcast has had relatively few programming blackouts during that time.
DIRECTV isn’t reporting quarterly subscriber numbers since it became a separate company jointly owned by AT&T and private equity firm, TPG. But Dish’s chief satellite rival was losing more customers than anyone when it did report prior to this year. And DIRECTV also has had relatively few programming interruptions.
So how does Dish do it? Why isn’t it losing more subscribers?
Three reasons:
1. Dish subscribers believe the satcaster offers lower prices.
Dish Chairman Charlie Ergen frequently says that Dish is able to keep prices from rising as much as its rivals because it’s willing to play hardball in carriage negotiations. The claim is debatable — DIRECTV’s prices are similar in comparable packages — but Dish’s subscribers seem to buy in. In e-mails to your truly, and social media posts, the satcaster’s customers often say they approve of Ergen’s tough negotiating stance because it helps keep their prices down. The Dish chairman has a reputation with his audience as someone who’s looking out for them. That shouldn’t be underestimated here. People root for Ergen. Comcast, DIRECTV, Charter and other pay TV services don’t have a well-known leader on top. They are viewed more as uncaring anonymous corporations, be that a fair view or not.
2. Many Dish subscribers can’t switch due to 2-year contracts.
Like DIRECTV and Comcast, Dish requires new subscribers to sign two-year agreements that include a $20 a month termination penalty if they cancel early. Unlike live streaming services, which do not require contracts, it can be financially painful to leave Dish even if it loses your favorite channel. At $20 a month, the termination penalty could be in the hundreds of dollars.
3. Many Dish subscribers live in rural areas where Dish and DIRECTV are the only options.
Federal studies have shown that between 20-40 million people live in areas where high-speed Internet service is either not available or is limited. Cable TV is also not readily available in these markets. Consequently, for many Dish subscribers, they have two choices for quality TV: Dish or DIRECTV. When Dish loses a channel, they can switch to DIRECTV (assuming they are not in a contract) but the hassle of getting a different dish installed on their property gives many pause. They often hang in there, hoping that Dish will settle the dispute sooner than later.
Juan, hope that makes sense. Happy viewing and stay safe!
Have a question about new TV technologies? Send it to The TV Answer Man at swann@tvpredictions.com. Please include your first name and hometown in your message.
— Phillip Swann
I NEVER cease to me amazed at the TOTAL LACK of FACTS vs. INFLATED comments some here post in their rants.
I BET however that IF DISH had simply caved and PAID out the wazoo for the EVER INCREASING COST of programming (Charile FORGOT more then AT&T knows of this business and DIRECTV ANYTHING is on LIFE SUPPORT as it is.) that they would bitch about the HUGE COST until it became impossible to buy the services from ANY of them.
AT&T is BLEEDING SUBs at an ASTOUNDING rate and their “STREAM” service WILL…NOT…SAVE THEM either.
DISH has kept the pricing of the entertainment fairly LEVEL and this is why they are in a far better position then ANYTHING AT&T has to offer.
THERE WILL BE channel Losses n the future until the lights go out on”basic cable” BUT the STREAMING services will if gone to “ALA-CART” be VERY LIMITED DUE TO THE EVER increasing COST because of…LACK OF INTEREST.
I would suggest that “some” of your readers FIND A NEW WAYS to “entertain” themselves as by the sound of it,MANY will NOT have the DOE to keep couch-potatoing !!
(ps…the NURSING HOMES are “waiting for you too”)
Dave (a.k.a. Charlie) I have had DTV for over 20 years and have received better treatment than any of your phony letters. I’ve discussed terms with Dish off and on so many times yet Dish can never meet the quantity or quality or even price of DTV, Dish knows more about hidden fees than any other service
You live in your own little world of belief they lost 9 million customers and bleeding 10,000 customers a day that’s a day so whatever you got to say here good old Tommy means zero
the only i have with DTV is nothing that problems… gif 6 months i tray to watch tv all day without interruption of services they have in one week 10 times call from me…. nothing was solve… a this point i don’t know what company going to be my next one…. here i don’t heard nothing much good.. and ATT. is crazy in problems too… o work for my money.. i don’t like when steeling from me…
An article about Dish, and Dave (Charlie) butts in with his hate on the company that has more than twice as many subs (35M to 14M)
He has no proof DTV will die, hopefully his company won’t merge with DTV, I’d lose out.
Try to stick to the question next time
As a former DTV customer and now a loyal Dish customer, I can give you two good reasons Dish has less defection. First, if you ever talk to DTV customer service, that experience will make you look elsewhere for TV service. Second, Dish hardware is light years ahead of DTV and stores many more movies.
I live near Dallas and have had Dish for several years. I finally got tired of losing the local channels. I put a good over the air (OTA) antenna in the attic and got the Dish OTA adaptor for the receiver. Works great, the OTA channels show up on the regular Dish menu. I am about 35 miles from the TV broadcast antennas.
Can you RECORD OTA Channels ?
Absolutely. Even the sub channels!!
As soon as FUBO gets TNT, I’m gone from Dish. I don’t care about the ETF. Even with the ETF added onto FUBO costs, I’d still pay less than I am with Dish. I’m tired of blackouts. I want the channels I’m paying for
Dish has loyal customers because the customer service is great and the hardware is way better than anything else. Watching TV away from my home sure beats having to watch DTV at the gym while on the treadmill.