Dish Network's profit fell 7.6% in the first quarter. This continues an ongoing trend and highlights the shrinking market for cable and satellite TV. This forces Dish network to pursue new sources of income. Dish lost over 260,000 customers from January to March. They helped to offset these losses through the creation of Sling TV, an internet based television streaming service. The first quarter also saw the lowest subscriber gain for sling TV. The company has renewed its contract with Univision, but talks are still at a standstill with HBO.
This shows the necessity of understanding one's target market. Dish Network understands that the US television provider's market is shrinking at an all time pace. They elected to try to offset this shrinkage through the creation of Sling TV in order to move in the television streaming market. This diversifies the business that Dish TV seeks.
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