Dish added customers, as monthly bills rose in 2009
March 1st, 2010, 8:10 am · 13 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
Results are in for Dish Network Corp. (DISH) and just like all other TV providers who aren’t cable companies, it grew.
The company ended 2009 with 422,000 net new subscribers, which brings its grand total to 14.1 million subscribers. During the fourth quarter, which ended Dec. 31, Dish added 249,000 customers. That’s about 15 percent of U.S. consumers who pay for TV service, according to Dish’s regulatory filing.
Financially, the company continued to make money, too. In the fourth quarter, Dish made $179 million in net income on revenues of $2.96 billion. That, however, was not as good as the prior fourth quarter, when Dish’s net income was $217 million. Last year, AT&T ended its partnership with Dish to offer TV service to wireless customers (AT&T switched to DirecTV instead). That partnership had accounted for 17 percent of Dish’s gross new subscribers in fourth quarter 2008.
For the year, Dish’s net income came in at $636 million, about one-third less then the prior year’s $903 million. Revenues remained steady at $11.62 billion.
But while Dish made less money, the company said that it squeezed a bit more money out of customers. On average, customers paid $70.04 a month for service, up from $69.27 in 2008. That $0.77-a month was a 1.1 percent increase and was attributed to price increases made in February 2009. In return, customers spent less money on premium movie channels and pay-per-view shows then in prior years.
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Dish’s “Average Revenue Per Subscriber” was one of the lowest in the paid-TV industry. Keep in mind, however, the average price of other TV competitors can include Internet and telephone service. See links to other TV earnings reports on the right.
As with all TV services, a big reason for higher prices was to pay for TV shows owned by networks that are looking to make more money themselves (remember the Fox vs. Time Warner squabble?). Programming fees jumped 6.4 percent from the prior year and cost Dish an extra $382 million. Dish spent $6.4 billion on such expenses last year.
To view Dish’s annual report filed with the U.S. Securities & Exchange Commission, go HERE.
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$70.04? But I thought DISH Customers only paid $39.99 a month (according to their ads)? Gee, could it be that TV has lied to me?
70 bucks a month could by me a camping trip, ski trip, clothes, food, a nice dinner out, or just plain saving’s.. Why would I want to pay that, when there is nothing good on T.V. anyway. Just a bunch of garbage and repeats!!! I just use HULU on my laptop and get free wifi. I can watch pretty much anything online. TBS also offers streaming and so does National Geographic DIY, just to name a few. I can watch what I want when I want and I also get to pause it and play back for free. No commercials either!!! No extra money for a DVR…Screw those cable and SAT companies..They are not getting my money!
$70.00 will not get you much of a ski trip. Mammoth single day tickets are at $87.00. I don’t have cable or dish anymore and use free on-line also plus Netflix streaming. I skiied free today because it is my birthday and when we left this afternoon I sold the ticket which paid for my gas.
Somebody has to nail these company for false advertising! I have been a DirecTV customer for years and at least I pay they quote to me.
39.95 is an introductory rate, probably 3-6 months, they clearly say that in the commericals heh.
+$10 for receiver
+$10 for HD channels
+tax & fees can easily get to $70
that’s not including premium channels or extras.
Cut back on your services. Tell them for every rate hike, you’ll cut a service to balance it out.
There are diffrent channel packages. The basic package is 24.99 for the first year and 39.99 after that. If you ad on HD and a DVR and local channels it will cost more.
http://dishnetwork.com/
I checked out the Dish package vs DirecTV and found that theDish commercials are misleading. The $39.99 Package that Dish calls comparable to DirecTV is a joke. At least you know what you are getting with DirecTv. I got rid of my cable years ago. I liked Directv because they have great customer service and they don’t try to BS you, unlike Dish. I really hate that.
To those who think Direct TV is free of BS, and Dish is worse, my experience with each says go with Dish. Direct TV is unbelievably unfriendly toward any subscriber unhappy in any way. Their attitude is they are #1, with you or without you, and they owe you nothing unless you are willing to spend what they will to litigate disputes with (against) a dis-satisfied subscriber.
I have been a Dish Network customer for over 6 years, the few time’s I have had to contact there customer service my issue was handled rapidly and professionally.
Meh, plenty of good entertainment on the Interwebs like Cannabis Planet TV and Poor Man’s Bikini Beach.
I have been a Dish customer since ’97. Only had one major issue during a DishMover program. Customer Service addressed the issue and creditied me 6months free service for the inconvience. While Dish and DTV are comparable in channels, I prefer the attention and excellent customer service I have received. My monthly bill is $96.