Directv Going To Lease Only On 3/1/06

[robo5280]

I would say that u would be under a lease.

[JustBob]

It should be that you could do it either way, just like a car. Buy it outright or lease it. That way everyone would be happy.

Well I doubt it's possible to make everyone happy.

Anyhoo, perhaps they should have used a word other than "Lease". I'm not sure what the driving force was for this move by DirecTV. But it seems like to the average consumer it won't be that big of a change. You'll just have to return the boxes to DirecTV if you leave. The costs seem about the same. I still have some old DirecTV boxes at home that they can have if they want. According to one of their graphs on "churn" it appears there's a lot of people who drop after 12 months, probably because their committment is over. So if there's a lot of boxes that are only 1 year old, this lease program could allow DirecTV to send those boxes to new customers and save some money. However after 2 or more years, is there really much value in the receivers anymore? Usually there's a newer model out by then.

-JustBob

[lovswr]

Just off the phone with Directv. The charge is $499 for the HD-DVR (MPEG-2) "hardware upgrade" for current customers under the lease program, which is hardly a lease by the standard definition. Thats the same price as buying the thing in February. His explanation of the advantage of leasing? With the lease, if the box breaks you get a new one. Wow, what an offer!

The way he explained it, for this "hardware upgrade," current customers must pay $499 (this is exactly what he said) and agree to a 24-month commitment. You do the math as to the per month lease charge. Would you ever buy a car on lease and pay the entire amount up front? How about the cable model, whereby you pay $10 a month with no upfront fee? What happened to that?

Directv seems to be on a real money grab with its bogus lease program, but it's gonna backfire big time in my view. The poor soul on the other end said he would pass my comments (I tried to be civil) to his supervisor. Yeah, right.

And this price, $499, is for the "lease" on the soon-to-be obsolete HD-DVR. Am I in a bad dream? Looks like Comcast is gonna be my provider in the next few months, unless things change dramatically. Or maybe even FIOS via Verizon. In my view, Directv will lose a boatload of customers after this news gets out.

The only thing that would make any sense at all is that the HD Tivo is 500, but the D branded (in June so they say ) HD DVR is only going to be 99. This is almost enough to make me go to Charter.

[vurbano]

Just off the phone with Directv. The charge is $499 for the HD-DVR (MPEG-2) "hardware upgrade" for current customers under the lease program, which is hardly a lease by the standard definition. Thats the same price as buying the thing in February. His explanation of the advantage of leasing? With the lease, if the box breaks you get a new one. Wow, what an offer!

And many places offer a 5 year warranty on the box when you buy it outright anyway. So all of the people trying to rationalize that as part of the "good" deal need to just forget it. That dog just wont hunt. Besides what is stopping you from getting their "protection" plan after it breaks and reporting it broken the next month, of course I would never do anything like that. LOL

[Andyman33]

If it was only 99 bucks for an HDDVR unit, then I'd be all over satellite. . .however, 420 dollars after tax I was quoted (they just discounted the price and didn't make me do a MIR) is insane and UNBELIEVABLE. Yea. . .I don't want to own my box so the lease program for me is the smart idea. I think they'll also keep the regular sat customer happy. . .its just the HDDVR people which SHOULD be what EVERYONE should want to go to. The difference between cable, 0 dollars and satellite 420 dollars over 2 years is almost 20 dollars per month, JUST for the box to use. . .its NOT 20 dollars cheaper to go to Sat. . .in fact, its a little more since for internet I have to have a phone line too for DSL, but a LITTLE more would be fine with me since I'd be getting ESPNU and ESPNHD2 as well as access to Sunday Ticket. . .20 bucks a month is a little outrageous though. . .

[smackman]

The entire decision/structure of the new D* lease program baffles me. I cannot find any significant reason that going to a lease structure would be beneficial for an end consumer. Given the previous comment sin this thread, such as the $470 fee for returning a damaged unit, $499 up front cost, etc., everything only seems to benefit D*.

I, too, expect D* customers to leave in droves when they hear about and understand the details of this new structure.

I'm going to probably hang around D* for a while yet and see how things play out - I can't see this new lease deal working out well for anyone, so something is going to have to change - hopefully to benefit the consumer a little bit.

[mikew]

Why would existing subs, who already have equipment, be leaving in droves? This program will simply curb D*'s growth and give a bigger advantage to E*'s growth. If I were looking for a system today, I'd go with E*. Since I already own my equipment, there's nothing to be upset about.

[smackman]

Your point is well taken. I should have been more clear that I was focusing on customers wanting to get an HDDVR, not those who already own all of their equipment.

[lou_do]

You have to remember this program just went into effect, and I am sure that D* officials are watching it very closely. I am sure that adjustments will be made to it as needed, to keep competitive with E*. If they see a big drop in new customers, or current customers leaving, you will see changes made to the program to keep them competitive.
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Actually by going on D* & E* web site, the cost is very close now.
You go onto D* site, as a new customer, and order 1 new HD receiver and programing. The receiver is free. Equipment cost is $0.00.

Now I go to E* web site, as a new customer, and order 1 HD receiver and programing and it ends up costing me $49.00 for a lease fee for that receiver.

Result as a new customer wanting 1 HD receiver, I can get it for free from D* or pay $49.00 from E*. Both required commitment, D* was 2 years and E* was 18 months.
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If I go to D*, as a new customer, and order a HD-DVR and programing, it will cost me $399.00. When I go to E* it only cost me $299.00 for a HD-DVR.

So when purchasing a HD-DVR as a new customer, I can save $100.00 by going with E*. Both required commitment, D* was 2 years and E* was 18 months.

Both companies are under a lease program, so I don't understand why the recent change of D* to a lease program, going to have a big drastic effect, like a few are saying.

[Andyman33]

It's going to keep ALL cable customer's who want HDDVR units away. . .