The second-largest U. S. satellite TV Company, Dish Network Corp. (DISH) is facing tough competition from a top notch U. S. satellite-TV provider, DirecTV.

Responding to the downfall of DISH in recent years, Chris Marangi at Gamco Investors Inc. Dish, where Ergen is Chairman and Chief Executive Officer, claimed that DirecTV’s strategic approach in the field of providing premium video and sports has wiped out a considerable part of Dish’s revenue growth and profit margin.

Following the massive loss in the business, Charlie Ergen has been drafting plans to shove off its provider and EchoStar Corp. (SATS) equipment Company into Internet and on-demand services to recover losses.

Amid this upside movements in the business since 2008, Dish shares have nosedived by 28% in comparison to the double upward leap of DirecTV’s shares.

Responding to the strategic approach of Ergen, Todd Mitchell, a Kaufman Bros. analyst, claimed, “Ergen is shifting his strategy as consumers change their viewing habits. His deal spree may help him appeal to people who want to watch video over the Internet and at times they choose, rather than fixed time slots”.

Following the bid approval of Blockbuster Inc for an amount of $320 million from a bankruptcy court, Dish is chalking out future plans so that the embattled company can recover some profit from online videos business.