In the first quarter of the year, Dish Network Corporation, the US subscription pay television service provider reported a subscriber loss of 21.8 percent, falling from 639,000 to 554,000 from the corresponding quarter of previous year. The ongoing programming spat and competition are the cited reason for this huge loss of customers.
The service provider had spats with Tuner Broadcasting, 21st Century Fox and certain local TV channels. Most of these issues elated during the beginning of Q4 quarter of 2014 and are continuing now. Fox News channel returned to Dish in mid-January.
Although, there is a reduction in the subscriber base, the company reports a revenue growth of 5.3 percent, amounting to $3724. 23 million compared to $3594.20 million in Q1 2014. The income too has doubled when compared to the previous year Q1, registering at $358.49 million when compared to $175.93 million in Q1 2014.
The first quarter of 2014 reported an average revenue per user (ARPU) of $82.36. This has gone higher at 4.4 percent and reached at $86.01 by Q1 2015. Echo Star revenue, which is the equipment sales, services and other revenue declined in this quarter to $12.84 million when compared to the last year’s $15.77 million.
However, the subscriber related expenses shoot up, to $2162.77 million in Q1-2015 from the previous year Q1 of $2069.13 million. Satellite and transmission cost too is on rise for the provider, marking 25 percent to $186.84 million from $149.5 million in Q1 2014.