Dish Should Rethink Their Negotiating Tactics Or Face The Inevitable

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Dish Network has been in dispute with a lot of channel providers for the past few months, and is currently offering services without 42 local channels by Tribune Broadcasting. However, Dish is still adamant at their decision, and said that they are not afraid of letting channels go dark if it could ultimately result in reaching better carriage terms with programmers. Dish Network claims that the tough stand taken by them helps it to reduce overall spending on programming, thereby removing the need for charging any extra subscription fee on customers.

Dish Network does offer the lowest price compared to other rivals, which has helped the satellite TV provider attract a lot of customers. However, due to the current disputes with Tribune Broadcasting and other stations, and lack of popular channels on the Dish Network channel list, is driving away more customers. According to reports, Dish Network has lost around 281,000 subscribers in the second quarter this year, and is continuing the current trend of shedding customers.

Within the span of two years, Dish Network has lost roughly 400,000 subscribers from 14.01 million to 13.6 million. Dish Network’s DishNet service, has around 600,000 subscribers, and if they were excluded from the list, Dish Network faced a major shedding of customers within just two years.

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There is more than one reason for shedding customers such as tougher credit policies, increased competition and small amount of cord cutting by subscribers looking to save money. However, other major cable TV alternatives like DirecTV and Comcast are adding more subscribers instead of losing them, implying a unique reason for Dish Network’s decline.

Dish Network CEO Charlie Ergen accepted the decline of consumers is due to channel blackouts, but restated that if necessary, channels will go dark. Dish Network is still making profit, so Ergen’s philosophy couldn’t be considered totally as a meritless one, but still, it appears that the company should rethink about the balance.

Dish Network customers will be tired of waking up in order to find their channels being removed from lineup, without any indication of its coming back. New customers will be doubtful for signing up for Dish Network packages due to the fear that the lineup wouldn’t be intact shortly after the installation. Dish Network has to come up with a solution addressing these concerns, or would lose even more customers to the current trend.

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