Finally, leading satellite TV operator DISH Network Corp. (DISH) and Fox News have managed to seal a multi-year agreement pertaining to carriage fees, putting an end to a week-long dispute between the two companies.
Henceforth, DISH’s 14 million satellite TV customers will be able to watch two of the most viewed channels in the country – Fox News and Fox Business Network. On Dec 21, 2014, both the channels had been taken off air from DISH’s offering after the two parties had failed to reach an agreement ahead of the contract expiry. However, financial terms of the deal have been kept under wraps.
In the recent past, DISH has faced contract renewal issues with several other cable TV content providers. In Nov 2014, the company had experienced a similar setback with CBS Corporation that resulted in a brief shutdown of few local CBS stations.
Incidentally, DISH has been persistently losing pay-TV customers. Had the company failed to reach an agreement with Fox News, the company’s churn rate would have worsened further in the coming quarters. Last quarter, the company lost 12,000 pay-TV subscribers. Average monthly pay-TV subscriber churn rate in the third quarter stood at 1.67% compared with 1.66% in the prior-year quarter.
Of late, DISH Network unveiled its Internet TV service – “Sling TV” – at the International Consumer Electronics Show. Technically, Internet TV is similar to cable/satellite TV services. Subscribers opting for Sling TV will have to pay as low as $20 a month to view 12 Nielsen-rated sports, lifestyle and family and news networks. However, Fox channels will not be available on Sling TV.
DISH currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Better-ranked stocks worth considering in this sector include Nexstar Broadcasting Group, Inc. (NXST), Liberty Global plc (LBTYA) and Salem Communications Corp. (SALM). Nexstar Broadcasting Group sports a Zacks Rank #1 (Strong Buy) whereas Liberty Global and Salem Communications hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment