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How Dish Network Is Positioned as It Transitions to Connectivity

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Part 3
How Dish Network Is Positioned as It Transitions to Connectivity PART 3 OF 19

Factors That Are Impacting Dish Network’s Churn Rate

Dish Network’s churn rate

Dish Network’s (DISH) pay-TV average subscriber churn rate per month has been declining on a quarterly basis. At the end of 2Q17, Dish had a pay-TV average monthly subscriber churn rate of 1.6% compared to 1.9% in 2Q16.

During the company’s 2Q17 earnings call on August 3, Dish Network’s management was asked about the factors impacting its declining churn rate and whether it expected this trend to persist.

Factors That Are Impacting Dish Network’s Churn Rate

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While Dish Network didn’t comment specifically whether the declining churn rate would persist, it did list the factors responsible for this trend. The company stated that it faces rising competition in its service areas from other pay-TV incumbents like Comcast (CMCSA). However, Dish is still looking at market areas with less competition where its pay-TV business could thrive.

Factors affecting Dish Network’s churn rate

Dish Network (DISH) has concentrated its marketing efforts toward acquiring customers who are willing to stay with Dish on a long-term basis, which would be profitable for the company.

Dish is also looking at subscribers who may be unwilling to pay a higher price for pay-TV packages with Flex Pack. With this program, the company plans to give its subscribers more choices for pay-TV, similar to the choices consumers have when viewing OTT (over-the-top) content.

Another factor that has contributed to Dish’s declining churn rate has been the company’s improved customer service and other operational improvements.

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