Dish TV’s revenue continues to shrink
Satellite TV provider Dish Network (DISH) reported its fourth-quarter earnings results on February 13. The company’s stock tanked 7.7% on the day as its revenue continued to shrink.
Dish generated revenue of $3.31 billion in the fourth quarter compared to $3.48 billion in the corresponding quarter of 2017.
For the whole of 2018, the company made $13.62 billion in revenue, a 5.4% fall from 2017.
Cord cutting is becoming mainstream in the United States, and the practice continues to negatively affect traditional pay-TV companies such as Dish.
Dish continues to lose subscribers in its traditional TV business. It had 9.9 million Dish TV subscribers at the end of 2018, marking a whopping fall of 1.125 million subscribers during the whole of last year.
Dish’s Sling continues to see fewer additions
What’s more, Dish’s live TV streaming service, Sling TV, also slowed due to stiff competition from similar services, such as Hulu and YouTube TV.
Dish added 205,000 subscribers to its Sling TV service last year compared to its net addition of 711,000 in 2017. What also plagued Sling TV’s growth last year was that it lost HBO and Cinemax due to disputes with their owner, AT&T (T).
Dish TV and Sling TV could continue to face headwinds this year as well. Media giants such as the Walt Disney Company (DIS) have announced that they will be launching their own streaming services. There could also be more participants, including Apple, in the streaming market. Meanwhile, leader Netflix (NFLX) continues to double down on original programming. Netflix continues to see robust growth in its subscriber base.