Englewood – Rising energy prices may force consumers to cut back on trips to the movies or eating out, but they likely will keep their satellite television service, EchoStar Communications Corp.’s 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.
“I’m not worried (that) people aren’t going to watch TV,” he said after an annual shareholders meeting. “I think we’re well-positioned for that.”
Satellite and cable television services have proven resilient during economic downturns, analyst Rob Sanderson of American Technology Research said. Consumers may skip newer services or perhaps cut premium channels but have proved unwilling to cancel altogether.
“TV is pretty important to a lot of Americans,” he said. “It’s one of the last things to go.”
With 20,000 employees, EchoStar 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 Echo Star’s headquarters, 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.
EchoStar is continuing to expand its services by developing technology, including portable devices to serve the traveling public and high-definition products. It also has been applying to install wireless networks for cities but has yet to win a contract.
EchoStar has also restructured its partnership 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 that the new contract allows EchoStar to use its expertise to attract customers.
