Fears of cord cutting were stoked by an earnings report today in which Dish Network revealed that it lost a record number of TV subscribers in the second quarter, Bloomberg reports.
“Dish shed 281,000 pay-TV customers in the quarter, compared with a loss of 81,000 a year earlier, according to a statement from the Englewood, Colorado-based company Thursday,” Bloomberg reports. “That marks the biggest loss of TV subscribers in any quarter. The rate of monthly customer defections, or churn, rose to 1.96 percent from 1.71 percent a year earlier, Dish said in a separate filing.”
Price increases and programming blackouts were among the factors driving customers to look for alternatives, the report notes.
“The shares fell as much 4 percent to $49.91 in New York Thursday, and were trading at $50.40 at 9:39 a.m.,” Bloomberg adds. “The stock had dropped 9.1 percent this year through Wednesday’s close.”
The Hollywood Reporter notes that Dish’s earnings still topped Wall Street estimates. The company “posted earnings of $410 million, or 88 cents per share, compared with $324 million in the year-ago quarter, or 70 cents,” THR reports. “Wall Street had on average projected $338.6 million, or 73 cents per share. Second-quarterly revenue rose to $3.84 billion from $3.83 billion, below Street consensus estimates.”