NEW YORK (Reuters) - U.S. satellite television provider DISH Network Corp reported a surprise quarterly loss in subscribers as it lost ground to cable and phone competitors amid a weaker economy, sending its shares down more than 5 percent.
Although the subscriber loss meant lower installation costs for DISH, which helped boost its second-quarter profit to above Wall Street expectations, analysts said on Monday the customer loss boded ill for the company's growth prospects.
“This is not pretty. It's the first ever loss of subscribers by a major satellite TV company," said Craig Moffett, analyst at Bernstein Research. “DISH appears to have lost its mojo when it comes to attracting new customers."
DISH, which is facing stiff competition from cable companies' competitively priced 'Triple Play' bundles of video, phone and high speed Internet, said it lost a net 25,000 subscribers during the second quarter.
Although the subscriber loss meant lower installation costs for DISH, which helped boost its second-quarter profit to above Wall Street expectations, analysts said on Monday the customer loss boded ill for the company's growth prospects.
“This is not pretty. It's the first ever loss of subscribers by a major satellite TV company," said Craig Moffett, analyst at Bernstein Research. “DISH appears to have lost its mojo when it comes to attracting new customers."
DISH, which is facing stiff competition from cable companies' competitively priced 'Triple Play' bundles of video, phone and high speed Internet, said it lost a net 25,000 subscribers during the second quarter.
