What’s Pulling Dish Network’s Revenue Down?

Dish’s revenue

Dish Network (DISH) reported revenue of $3.19 billion in the first quarter of 2019. Though its revenue was in line with analysts’ expectations, it fell 7.8% YoY (year-over-year). Its first-quarter revenue fall was higher than its fourth-quarter revenue fall of 4.9%.

Dish Network’s revenues have been falling on a YoY basis for the past ten straight quarters.

What’s Pulling Dish Network’s Revenue Down?

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Reasons for the revenue fall

The fall in the company’s first-quarter revenue was the result of a drop in DISH TV subscribers partially offset by higher pay-TV ARPU (average revenue per user) and a rise in its number of Sling TV subscribers.

Dish’s pay-TV ARPU increased on the back of higher programming prices of DISH TV in 2018 and 2019 and constant growth in its revenue per Sling TV subscriber. However, a higher mix of Sling subscribers in the company’s overall pay-TV customer base offset the pay-TV ARPU growth in the quarter. The removal of AT&T’s premium channel, HBO, due to a carriage contract dispute also hurt the company’s subscriber numbers and revenue in the quarter. Dish also had a carriage dispute with Univision, but the company finally struck a deal with Univision in March.

Dish’s Sling TV subscriber revenue rose in the first quarter as its customers shifted to higher-priced packages. Its revenue growth was also the result of the $5 price hike of the Orange package, which it announced in the third quarter of 2018, as well as an increase in add-on revenues from extras, ad sales, and cloud DVRs.