Dish Network signed approximately 422,000 net subscribers by the end of the 2nd quarter of 2009. This increase results from the higher increase of newly added subscribers as opposed to the number of churns.

The increase in subscriber count is the result of the company’s sales and marketing efforts in the second half of 2009. During this period, Dish Network changed the promotional mix of its satellite TV package offers. The company also focused on addressing its operational inefficiencies to contribute long-term subscriber growth.

The positive turn-out of churned subscribers, on the other hand is attributed to the completion of Dish Network’s security access device replacement program, the increase in its commitment period and in its initiatives to retain its existing subscribers. Churning subscribers would usually increase when their commitment period expires so in February 2008 the lock-up period was raised from 18 to 24 months.

The downside of the promotional discounts and the retainment initiatives was the decrease in Dish Network’s profits from the subscribers. The increased programming costs, certain subscriber migration to more efficient transponder capacity, and customer service improvements ate up a significant portion of subscriber-related expenses.