Here Is Why Shares of Dish Network Aren't Exactly Delectable Now

The Internet has changed the way we live, including how we access entertainment.

Such shifts have affected the communication and media industries. 

This year, more than one in five U.S. households is estimated to have cut the cable cord, opting to watch films and videos online instead of subscribing to traditional cable television services. Among younger demographics, some households have never had to cut cords.

The trend has affected satellite TV operators, too. 

On Wednesday, Dish Network (DISH) released third-quarter earnings that show that this satellite TV brand is suffering thanks to the cord-cutting trend.

Dish Network is the country's second-largest satellite provider, coming just behind DirecTV.

It also has an Internet-based TV service, Sling. However, Sling's popularity can't compensate for Dish Network's subscriber losses.

Over the past four quarters, Dish Networks has lost about 949,000 satellite subscribers. By comparison, over the same time period, only about 517,000 new subscribers have signed up for Sling.

The alarmingly fast rate at which subscribers are canceling their Dish Network service overshadows any positives coming from the company.

For the quarter, the company's profit rose to $307.4 million or 64 cents a share, from $196.5 million or 42 cents a share a year earlier.

Dish Network's stock initially tanked following the third-quarter results but reversed to close up more than 2%. However, don't expect much from this satellite company, at least in the short term.

The cable and satellite TV business is evaporating. AT&T acquired satellite giant DirecTV last year for $48.5 billion and will repackage this product as DirecTV Now, a multi-channel service delivered via the Internet.

Continue to avoid Dish Network, at least for the near future.

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The author is an independent contributor who at the time of publication owned none of the stocks mentioned.

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