DISH Network lost 281,000 subscribers in the second quarter of 2016, leaving it with a total of 13.59 million pay-television subscribers, including Sling TV customers. It is by far the largest quarterly subscriber loss so far for DISH Network and is greater than the combined losses over the preceding eight quarters, although revenues were slightly higher.
DISH activated 527,000 new pay-television subscribers in the quarter. 808,000 customers cancelled their subscription, resulting in a net loss of 281,000.
That compares to a net loss of 23,000 in the first quarter of 2016 and a net loss of 81,000 in the second quarter of 2015. It is the fifth consecutive quarterly subscriber loss for DISH Network. The loss of 281,000 subscribers in a single quarter is greater than the cumulative losses over the preceding eight quarters, according to the informitv Multiscreen Index.
“Our pay-TV churn rate continues to be adversely affected by increased competitive pressures, including aggressive marketing, bundled discount offers combining broadband, video and/or wireless services and other discounted promotional offers, as well as cord cutting,” the company reported. It also noted: “There can be no assurance that our Pay-TV subscriber base will not continue to decline.”
Historically, the first half of the year generally produces fewer gross new subscriber activations than the second half of the year, and the second and third quarters generally produce higher churn.
Average monthly revenue per user for the second quarter was $89.98, compared to $87.91 a year before. Television subscriber churn was 1.96% versus 1.71% for second quarter of 2015.
DISH lost approximately 15,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 613,000.
Revenue for the first half of 2016 was $7.62 billion, up from $7.56 billion for the same period the previous year.
Operating income from pay-television and broadband was $1.20 billion for the first six months of the year, compared to $1.05 billion for the same period a year before.
The informitv Multiscreen Index tracks trends in television worldwide. It measures the performance of 100 cable, satellite and telco television and video services by their current digital subscription numbers. The Multiscreen Index includes top 10 tables ranked worldwide, by region, mode of delivery and quarterly net subscriber gains or losses.