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The price performance of DISH Network displays a positive trend of 4.59% but has underperformed the Zacks categorized Cable Television industry’s 5.91% gain over the past three months.
We are impressed with DISH Network’s efforts to diversify its business model from being a pure-play satellite-TV operator to an Internet TV operator. This should help the company counter competitive threats from low-cost video streaming operators. DISH Network’s Internet TV service -- Sling TV -- which offers services at a reasonable rate and has been made attractive by the addition of other premium networks such as Showtime and its related channels, has failed to add subscribers. The company lost 25,000 broadband subscribers in first-quarter 2017 compared with a gain of 5,000 in the year-ago quarter. As of Mar 31, 2017, DISH Network had 555,000 broadband subscribers, compared with 628,000 at the end of the prior-year quarter. Stiff competition might have resulted in subscriber loss at the broadband segment.
The flexible cash and liquidity position of the company opens up scope for investments. We can witness similar flexibility in the upcoming quarterly results. The launch of Air TV Player bodes well for the company’s growth prospects.
DISH Network’s top-line growth remains under pressure due to its failure to strike any deal with wireless operators to deploy a nationwide wireless network. The company might be affected by its failure to renew long-term programming contracts on favorable pricing and other economic terms. Escalating programming and content expenses and retransmission of fees may hurt the company’s margins.
Persistent loss of subscribers has been a drag for long. DISH Network faces intense competition in the pay-TV market from rival players like AT&T Inc. (T - Free Report) , Comcast Corp. (CMCSA - Free Report) and Charter Communications Inc. (CHTR - Free Report) .
On Jun 5, 2017, DISH Network was penalized by the U.S. District Judge of the Central Illinois District, Sue Myerscough, with a fine-cum-damage recovery cost of $280 million, to be paid to the U.S. government and four states in relation to the eight-year-old ‘robocall’ telemarketing lawsuit. In Mar 2009, the four states and Federal Trade Commission (FTC) sued DISH Network for allegedly violating the National Do Not Call Registry laws, after the company settled with 46 states. Toward this end, DISH Network respectfully disagrees with the court’s decision and claims to appeal against the same. This is possibly the biggest judgment ever related with such a case. We expect DISH Network to quickly resolve all such disputes and focus on its growth strategies.
Latest Updates on DISH Network
On May 22, 2017, DISH Network extended its DISH Anywhere app experience to customers' big screen televisions through Amazon Fire TV products. This will enable customers to use a media player to easily access DISH Anywhere on any TV with an HDMI input, either at home or outside.
On May 18, 2017, DISH Network unveiled its plans to launch a Spanish-language customer service app, with easy access to a variety of account-related services from a smartphone or tablet.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Why DISH Network (DISH) Is a Hold Despite Consumer Loss
On Jun 14, 2017, we issued an updated research report on DISH Network Corp. . The company, the second largest satellite TV operator in the U.S., currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The price performance of DISH Network displays a positive trend of 4.59% but has underperformed the Zacks categorized Cable Television industry’s 5.91% gain over the past three months.
We are impressed with DISH Network’s efforts to diversify its business model from being a pure-play satellite-TV operator to an Internet TV operator. This should help the company counter competitive threats from low-cost video streaming operators. DISH Network’s Internet TV service -- Sling TV -- which offers services at a reasonable rate and has been made attractive by the addition of other premium networks such as Showtime and its related channels, has failed to add subscribers. The company lost 25,000 broadband subscribers in first-quarter 2017 compared with a gain of 5,000 in the year-ago quarter. As of Mar 31, 2017, DISH Network had 555,000 broadband subscribers, compared with 628,000 at the end of the prior-year quarter. Stiff competition might have resulted in subscriber loss at the broadband segment.
The flexible cash and liquidity position of the company opens up scope for investments. We can witness similar flexibility in the upcoming quarterly results. The launch of Air TV Player bodes well for the company’s growth prospects.
DISH Network’s top-line growth remains under pressure due to its failure to strike any deal with wireless operators to deploy a nationwide wireless network. The company might be affected by its failure to renew long-term programming contracts on favorable pricing and other economic terms. Escalating programming and content expenses and retransmission of fees may hurt the company’s margins.
Persistent loss of subscribers has been a drag for long. DISH Network faces intense competition in the pay-TV market from rival players like AT&T Inc. (T - Free Report) , Comcast Corp. (CMCSA - Free Report) and Charter Communications Inc. (CHTR - Free Report) .
On Jun 5, 2017, DISH Network was penalized by the U.S. District Judge of the Central Illinois District, Sue Myerscough, with a fine-cum-damage recovery cost of $280 million, to be paid to the U.S. government and four states in relation to the eight-year-old ‘robocall’ telemarketing lawsuit. In Mar 2009, the four states and Federal Trade Commission (FTC) sued DISH Network for allegedly violating the National Do Not Call Registry laws, after the company settled with 46 states. Toward this end, DISH Network respectfully disagrees with the court’s decision and claims to appeal against the same. This is possibly the biggest judgment ever related with such a case. We expect DISH Network to quickly resolve all such disputes and focus on its growth strategies.
Latest Updates on DISH Network
On May 22, 2017, DISH Network extended its DISH Anywhere app experience to customers' big screen televisions through Amazon Fire TV products. This will enable customers to use a media player to easily access DISH Anywhere on any TV with an HDMI input, either at home or outside.
On May 18, 2017, DISH Network unveiled its plans to launch a Spanish-language customer service app, with easy access to a variety of account-related services from a smartphone or tablet.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>