Amazon could end up being DISH’s first wireless customer

Earlier this month, citing unknown sources, TVNewsCheck reported that DISH Network (DISH) and Amazon (AMZN) were in talks for Amazon to be DISH’s first customer when DISH launches its wireless network.

According to the report, it’s not clear whether Amazon intends to invest in DISH or its wireless business.

How Amazon Could End Up as DISH Network’s First Wireless Customer

Considering DISH Network’s continuing pay-TV subscriber losses, the company is increasingly looking at transitioning into a connectivity company. According to DISH, it believes that the wireless industry will continue to see consolidation. Last month, Dish ended up being the second-largest spectrum buyer at the FCC’s (Federal Communications Commission) 600 MHz (megahertz) auction, spending $6.2 billion.

Other major buyers at the broadcast spectrum auction included T-Mobile (TMUS), AT&T (T), and Comcast (CMCSA), which spent ~$8.0 billion, $910.2 million, and $1.7 billion, respectively.

DISH’s pay-TV subscriber losses could be fueling its entry into the wireless space

As the chart above indicates, in 1Q17, DISH’s subscriber losses rose. The company saw a loss of 143,000 pay-TV subscribers, compared to its loss of 23,000 subscribers in 1Q16.

The rising competition in the media industry has been one of the main reasons for DISH’s rising pay-TV subscriber losses. While streaming services such as Hulu are launching online television services, Alphabet’s (GOOG) YouTube is also entering the fray with YouTube TV.

Existing pay-TV operator Comcast is also innovating when it comes to its X1 set-top box. It’s following a market segmentation strategy for its triple play (video, voice, and high-speed Internet) services and offering deep discounts on its video services.

Latest articles

Last week (ended August 16) was rough for Canopy Growth (WEED)(CGC) stock. It fell about 14% after the company's fiscal 2020 first-quarter earnings report.

Apple shares rose close to 3% in early hour trading on Monday. So, why is Apple stock trading higher? The market sentiment might have turned positive.

Huawei plans to launch its own mapping service as soon as this October. But Huawei’s Map Kit will initially not be a consumer mapping service.

In April, Amazon announced its plan to transform its free two-day shipping program to a free one-day shipping program for its Prime customers.

Cannabis companies face regulatory challenges. Recently, CannTrust (CTST) didn't comply with Health Canada’s regulations.

China’s state media agency, Xinhua News Agency, reported on August 18 that police had seized a FedEx parcel containing a handgun.