Dish releases Q2 2022 earnings
On August 3 Dish Networks released its Q2 2022 earnings and reported 7.87 million wireless subscribers by period end. Despite gaining 793K subscribers during the quarter, the company did see a net loss of 210K. This decrease was less severe than the two previous quarters, however, and while subscriber counts took a dip, the churn rate was lower than the prior three quarters at 4.39% and ARPU rose to $37.90.
The NPD Take:
- We may be at the bottom of Boost’s decline; the brand recently launched a new cellular service plan that is just $25 per month for unlimited talk, text and data. Dish (Boost’s owner) advertises the plan as half the price of Metro and Cricket. While this move has the potential to help Dish’s wireless subscriber count in the next quarter, Boost rounds out the bottom in Net Promoter Score (16%) tracked via the NPD Mobile Consumer Tracking survey and being the price leader may not be enough to turn the tables around quickly.
Verizon’s gaming play
The big news from Verizon is their new partnership with Microsoft, bringing Xbox consoles to the carrier’s shelves. Through Verizon, customers can purchase Xbox All Access in select stores or online to get the Xbox Series S or Series X and two years of Xbox Game Pass Ultimate for $24.99 and up per month over 24 months with 0% APR. Game Pass Ultimate comes with a library of games that can be played across various devices. In a press release, Verizon emphasized the benefits of the partnership for customers, such as the synergy between Verizon’s fiber and 5G services and online gaming. For a limited time, Verizon is also offering 50% off an Xbox Elite controller, $40 off the Microsoft Xbox Stereo headset when you buy the Xbox Wireless controller, or 25% off the Razer Xbox Wolverine V2 controller and Kaira headset bundle.
The NPD Take:
- This new partnership and product assortment could be an important opportunity. There are a few different innovations at play here: a new set of products to attract revenue from Xbox sales, and publicity around Verizon’s 5G capabilities and Verizon’s home internet speeds. Positioning these products and services together may attract not only customers in the market for a new Xbox, but also other gamers or anyone seeking faster connectivity speeds. Additionally, the fact that the Xbox games can be played across multiple devices is another selling point for needing increased internet speed and stability.
- According to our February 2022 Mobility Survey, 19% of smartphone owners would be likely to purchase a gaming console from their wireless carrier. This survey was fielded prior to Verizon’s Xbox partnership; however, it provides insight into consumer shopping preferences. In the next wave of the survey, fielding now, we will observe if this statistic changes.
- As more wireless carriers enter the home internet space, like T-Mobile’s 5G home internet offerings, Verizon will need to stay competitive. These kinds of partnerships and publicity can help to keep or incentivize customers.