With the
increased price of oil many consumers will cut back on their trips. They will
reduce going to the movies or eating out, which means they will spend more time
at home, and that looks promising to satellite television service, DishNetwork
chief said Thursday.
EchoStar's satellite
TV provider, the DISH Network, may benefit as more consumers look for cheaper
services, said Charlie Ergen, EchoStar chairman and chief executive officer.
"I'm not worried people aren't going to watch TV," he said after
an annual shareholders' meeting. "I think we're well-positioned for that."
During
times of economic hardships satellite and cable television services have proven
resilient, analyst Rob Sanderson of American Technology Research said. Customers
may reduce the number of premium service, but stopping their satellite TV service
is unlikely.
"TV is pretty important to a lot of Americans," he said.
"It's one of the last things to go."
With 20,000 employees DishNetwork
is the second-largest satellite TV provider in the United States. The company
is expected to face stiffer competition from rival DirecTV Group Inc., as well
as cable television companies and telephone companies that are exploring Internet
and video services.
During the meeting at DishNetwork headquarters in suburban
Denver, Ergen called DirecTV a "formidable competitor," but said it
also has helped strengthen the satellite TV industry with such actions as its
lobbying efforts with Congress and government agencies on industry issues.
Dish
Network is growing it product line-up with services for satellite TV for cars
and with new high definition programming. It also has been applying to install
wireless networks for cities but has yet to win a contract.
Dish Network
has also in the process of restructuring its contract with SBC Communications
Inc. to focus more on marketing. In the second quarter, the company blamed a 33
percent drop in net subscribers in part on that partnership.
Ergen said
the terms of the initial agreement did not work as well for SBC and the new contract
allows Dish Network to use its expertise to attract customers.