• by Wayne Friedman , November 9, 2015

Dish Network improved its profitability in its third quarter, despite growing subscriber losses.

Net pay TV subscribers sank about 23,000 compared to a drop of 12,000 in the third quarter of 2014 -- which includes subscribers of its traditional satellite business and its new Sling TV OTT product. The company ended the third quarter with 13.9 million Dish Network and Sling TV subscribers.

Dish’s revenue inched up 1.5% to $3.73 billion with net income rising 35% to $196 million. Contributing to these results, average monthly fees per consumer were up $86.33 versus $84.39. Dish also added 13,000 net broadband subscribers to total about 608,000.

Some analysts are worried about traditional satellite consumer cannibalization -- coming at the hands of Dish’s Sling TV.

Craig Moffett, senior media analyst at MoffettNathanson Research, now estimates a loss of 47,000 traditional satellite TV customers -- better than his previous estimate of 81,000. 

Moffett said this would be Dish’s worst third-quarter result since 2011, when it dropped a net 111,000 in the midst of a dispute with Viacom.

In addition, Moffett says Sling “could already be showing net subscriber declines,” estimated to gain 24,000 in the third quarter, down from the net 56,000 additions in the second quarter. Sling is estimated to total around 240,000 at the end of third quarter.

Dish’s stock closed down on Monday 1% to $63.09.