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There is no question as to the toll that the direct rivalry between DirecTV and its nemesis DISH Network is continuing to take on the company’s stocks. With discounts of up to 50% on certain packages the returns continue to take hit after hit. Much of the problem seems to be coming, not only from the stiff competition DirecTV faces from DISH, but also from the growing churn rate that the company faces.
A company’s churn rate is the rate at which the company loses relatively new subscribers. Many different factors including a poor economy and consumer reluctance at paying higher subscription fees are both playing into the increase in the churn rate that DirecTV is currently experiencing.



