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Yelling at my phone
August 4, 2008
As I am typing today’s edition of “The Satellite Dish” I have my phone to my ear and I am listening to Dish Network CEO Charlie Ergen talking about his last quarter earnings. As I am listening I can’t imagine that I am the only one person who follows the industry closely yelling "WHAT" in the phone as Charlie Ergen was speaking.
As I expected today's earnings report came out and it wasn't all good news for Dish Network. For the first time ever Dish Network lost subscribers. I couldn't believe that Charlie actually got on the line on the earnings confrence call and blamed the loss on the economy and people hacking the Dish Network service.
I don’t know about you but that just makes my head spin.
Looking at all the other provider’s numbers no one has a loss of subscribers except for Dish Network. Charlie’s logic here does not make sense to me. Why is Charlie now blaming hacking on the subscriber loss when Dish Network’s signal has been compromised for at past 7 years. If the economy is so bad I don’t see people just running out spending the money on special equipment and hacking Dish Network. Sorry Charlie I just don’t buy it.
Lets face it, Dish had a horrible quarter in the press, they had the loss of AMC14 which was played by many in the press as a major loss for Dish Network. Then Dish was in the news with more negative news over the Tivo patient case. And finally the other bad press for Dish was the overnight loss of 15 VOOM HD channels this news not only kept people from subscribing to Dish, but also cost Dish a number of it's loyal customers.
Charlie talked about Tivo and was optimistic that the courts would rule in his favor against Tivo on September 4th. He admitted so far Tivo has been winning the game, but he also admitted he was stubborn and wanted to prove that his new software was not infringing on any of Tivo patents. For me it was refreshing to hear Charlie say that he is looking to work with Tivo, I have been saying for a long time that it made sense for them to work together. Perhaps Charlie does indeed read “The Satellite Dish.”
For other parts of the call Charlie was repeating what he has said on many conference calls in the past, that customer service could be improved and that that he wasn’t doing as good of a job as CEO as he should be. Charlie could just make a recording and play those comments on each call as he always seems to say the same thing.
But no matter how bad things were in the second quarter, things may not be look that bad for the future of Dish Network, on the call Charlie mentioned that the new satellite was up (Echostar 11) and that there would be further HD expansion then and plus another satellite is still slated to launch in Q4 which will also help Dish offer more HD to its customers.
And while some of what Charlie said on todays earnings call had me yelling into my phone, I must admit I have been impressed so far with Dish Networks marketing of it’s new “TurboHD” all HD programming service.
These new ads are hitting just when people are thinking about watching TV again as summer quickly comes to a close. There wasn’t a newspaper or TV show I watched this weekend that did not have an advertisement for their new TurboHD service. From where I sit there is no better value for the money for HD fans then with the new TurboHD offerings.
Here is to looking up for the 3rd quarter.
Posted by Scott Greczkowski on August 4, 2008 | Comments (14)