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Dish Network Targeting Latino Customers in DTV Switchover
[Satellite News 08-21-08] Dish Network’s new package deal, unveiled Aug. 21, aims to acquire Latino subscribers affected by the switch to digital TV.
The switch from analog broadcasts to digital is scheduled to take place Feb. 17 and may surprise an unsuspecting Latino audience.
“A couple of months ago, I think awareness for the switchover was poor across the board,” spokeswoman Francie Bauer told Satellite News. “I think it has been getting better. From our perspective, we have been reaching out to a lot of Latino organizations to get the word out about the transition.”
The new programming package allows consumers to sign up for what the company calls American or Latino welcome packs, featuring 20 channels for $9.99 a month. The company also is offering its entry-level converter box, the TR-40 CRA, for free when customers apply a $40 U.S. government coupon to the price. Dish Network’s competitors, Verizon and WildBlue offer similar coupon programs.
Dish Network, which in early August reported its first quarterly subscriber loss, is banking on customers adapting to new technologies to expand their customer base.
“We wanted to take this step to give over-the-air customers the chance to experience the technology of digital TV practically for free,” said Bauer. “And then, eventually, if they ever do decide to switch over to pay TV, they will think of us.”
But not everyone is optimistic about Dish Network’s strategies.
Philip Doriot, program director of CFI Group, told Satellite News that the notion of a $9.95 offer to generate customers from former over-the-air users is foolish.
“Most people who still work with broadcast television do so by choice,” said Doriot. “It is not as if entry prices for either Dish Network or DirecTV have created a barrier for people to afford the services. A drop in price of $10 is not going to create the wave of customers Dish Network has not been seeing.”
Doriot said it is more likely that the offer will attract either existing Dish customers or cable customers seeking a lower price point.
Dish Network’s shared value dropped off Aug. 21 after Sanford Bernstein analyst Craig Moffett pointed out that Dish Network’s business “deteriorated sharply” while churn "spiked higher," in a research note released earlier that morning. "Dish Network simply doesn’t look competitive anymore," Moffett said as he downgraded the stock.
Dish Network has no comment on Moffett’s analysis, Bauer said.
The switch from analog broadcasts to digital is scheduled to take place Feb. 17 and may surprise an unsuspecting Latino audience.
“A couple of months ago, I think awareness for the switchover was poor across the board,” spokeswoman Francie Bauer told Satellite News. “I think it has been getting better. From our perspective, we have been reaching out to a lot of Latino organizations to get the word out about the transition.”
The new programming package allows consumers to sign up for what the company calls American or Latino welcome packs, featuring 20 channels for $9.99 a month. The company also is offering its entry-level converter box, the TR-40 CRA, for free when customers apply a $40 U.S. government coupon to the price. Dish Network’s competitors, Verizon and WildBlue offer similar coupon programs.
Dish Network, which in early August reported its first quarterly subscriber loss, is banking on customers adapting to new technologies to expand their customer base.
“We wanted to take this step to give over-the-air customers the chance to experience the technology of digital TV practically for free,” said Bauer. “And then, eventually, if they ever do decide to switch over to pay TV, they will think of us.”
But not everyone is optimistic about Dish Network’s strategies.
Philip Doriot, program director of CFI Group, told Satellite News that the notion of a $9.95 offer to generate customers from former over-the-air users is foolish.
“Most people who still work with broadcast television do so by choice,” said Doriot. “It is not as if entry prices for either Dish Network or DirecTV have created a barrier for people to afford the services. A drop in price of $10 is not going to create the wave of customers Dish Network has not been seeing.”
Doriot said it is more likely that the offer will attract either existing Dish customers or cable customers seeking a lower price point.
Dish Network’s shared value dropped off Aug. 21 after Sanford Bernstein analyst Craig Moffett pointed out that Dish Network’s business “deteriorated sharply” while churn "spiked higher," in a research note released earlier that morning. "Dish Network simply doesn’t look competitive anymore," Moffett said as he downgraded the stock.
Dish Network has no comment on Moffett’s analysis, Bauer said.
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