DISH Network Corporation, together with its subsidiaries, provides pay-TV services in the United States. It operates through two segments, DISH and Wireless. The company provides video services under the DISH brand. It also offers programming packages that include programming through national broadcast networks, local broadcast networks, and national and regional cable networks, as well as regional and specialty sports channels, premium movie channels, and Latino and international programming. In addition, the company provides access to movies and TV shows via TV or Internet-connected tablets, smartphones, and computers; and dishanywhere.com and mobile applications for smartphones and tablets to view authorized content, search program listings, and remotely control certain features. Further, it offers Sling TV services, including Sling Orange, Sling Blue, Sling International, and Sling Latino services that require an Internet connection and are available on streaming-capable devices, such as TVs, tablets, computers, game consoles, and smart phones primarily to consumers who do not subscribe to traditional satellite and cable pay-TV services. Additionally, the company satellite broadband and wireline broadband services under the dishNET brand, as well as wireline voice services; and has wireless spectrum licenses and related assets. As of December 31, 2016, it had 13.671 million Pay-TV subscribers. The company offers receiver systems and programming through direct sales channels, small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. DISH Network Corporation was founded in 1980 and is headquartered in Englewood, Colorado.
Business Analysis of Dish Network
The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Dish Network compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Dish Network to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Dish Network with an interactive chart.
- Revenue Growth: Dish Network reported a revenue growth of 0.2% year-on-year during 2016. Telecom Services Industry grew at 8.6% in the same period
- COGS share of Revenues: As a percentage of revenue, Dish Network spent 64.1% of its total revenues on COGS. Telecom Services industry average (COGS share of revenue) in the same period was 37.8%
- R&D share of Revenues: Dish Network R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Dish Network spent 14.9% of its total revenues on Sales, Marketing, and General Administration (SG&A). Telecom Services industry average SG&A spending in the same period was 26.6%
- Inventory share of Revenues: As a percentage of revenue, Dish Network spent 3.1% of its total revenues on Inventories. Telecom Services industry average Inventory spending in the same period was 0.9%
- Accounts Payable share of Revenues: As a percentage of revenue, Dish Network invested 3.4% of its total revenues on Accounts Payable (A/P) Telecom Services industry average Accounts Payable investment in the same period was 15.9%
- Accounts Receivable share of Revenues: As a percentage of revenue, Dish Network invested 5.0% of its total revenues on Accounts Receivable (A/R). Telecom Services industry average Accounts Receivable investment in the same period was 11.4%
- PP&E share of Revenues: As a percentage of revenue, Dish Network invested 16.9% of its total revenues on Property, Plants, and Equipments (PP&E). Telecom Services industry average PPE investment in the same period was 79.2%
- Intangibles share of Revenues: Dish Network Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
- Net Margins: Dish Network Net Margins in the year 2016 were 9.6%. Telecom Services industry average Net Margins in the same period were 6.9%
Sector and Industry Association of Dish Network
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Dish Network is associated with Telecommunications Sector and Telecom Services Industry.
Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:
- Telecom Services industry includes providers of fixed-line and mobile telephone services.
- Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.
Industry Ranking of Dish Network
With $15.1 billion revenues, Dish Network ranked number 8 of all the companies in the US Telecom Services industry. There were a total of 36 public companies in the US Telecom Services industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Telecom Services industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.