Directv Going To Lease Only On 3/1/06

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Stargazer said:
This means that the value of the DirecTv receivers should go up.
Probably, at least if you insist on owning. When I first signed up for E* way back in 96, it was cheaper to own and made the most since, Prime Star (P* as was referred to here for all you old timers here :) any one remember) was the only satellite provider offering a lease and were charging a $10/mo lease fee in addition to the programing package. Today E* and starting on 3/1 D*, have both went to leasing, however D* nor E* is charging an additional fee for leasing and if you are a new customer and commit for 1 - 2 years depending on the promotion and equipment, you are receiving coverage if something breaks too. The way D* and E* are structuring these leases it has become cheaper to lease. I now have digital cable because of line of site issue's where I currently live, if I return to satellite once I build a new house, I will gladly lease the next time because it has become so much cheaper to do so, and both D* and E* have essentially become cable in the sky any way.
 
DirecTV’s New Lease on Life

Adopting a strategy used by cable operators, DirecTV Inc. in March will begin leasing its set-top boxes and digital-video recorders to its customers instead of selling them.

The nation’s largest direct-broadcast satellite provider, with 15 million subscribers, notified its retailers this month that it was migrating to a lease program effective March 1.

Those dealers were told that they would only be paid commissions for leasing DirecTV’s hardware to customers, not selling those receivers.

The change in strategy is aimed at ultimately helping to drive the rollout of advanced services like HDTV and interactive, which offer new revenue streams.

“Most of our multichannel competitors use this model,” senior vice president of sales and distribution Jim Arnold said. “It’s our version of it, and we think it’s very competitive with what they do.”

In a way, DirecTV’s move toward leasing and not selling its set-tops to consumers is ironic. Cable’s long-standing modus operandi has been to lease its hardware to subscribers.

On the flip side, cable operators -- long mindful of DBS’ big presence in consumer-electronics stores -- at times have tested selling, rather than leasing, set-tops.

DirecTV currently substantially subsidizes the cost of its set-tops to retailers. The DBS provider also pays retailers a commission on the DirecTV-programming subscriptions they sell to consumers.

Initially, the switch to leasing won’t impact consumers too much. For example, right now, subscribers with basic $39.99-per-month service already get their first standard receiver free-of-charge.

And a current promotion for the “DirecTV Plus” DVR won’t change. Subscribers will have to pay $99 for it, but they can mail in a $100 rebate form.

With leasing, a customer will pay $5.99 per month for digital recording service, get a standard set-top free-of-charge and pay $4.99 to lease a second receiver that includes a DVR.

For more on DirecTV’s lease program, please see Linda Moss’ story on page eight of Monday’s issue of Multichannel News.

http://www.multichannel.com/article/CA6301253.html?display=Breaking+News&referral=SUPP&nid=2226
 
I'm pretty sure I'm going to order Directv but is there any reason to wait until after the leasing goes into affect?

If I want to get HD DVR do I have to pay 300 plus a lease fee?

Also I still can't tell if the lease fee replaces the extra room receiver fee or not. I guess the only advantage is that you could easily upgrade to a newer box if you are just leasing as long as they don't charge you a fee for the boxes plus the leasing fee.
 
can anyone explain how this will work, will the dvr fee still cover all the dvrs you have .

for example i got 5 dvrs and only get charged a fee for one and that covers them all will that stay the same?
 
Ok, so Total Choice gets you the basic boxes for free, is that correct? Assuming that it is, would Total Choice Premier customers (such as myself) get more advanced (R15 the HMA if it ever comes out) for free as well?

Basically it seems to me, that I get to lease from D* and pay for the boxes that are really worth something to me. How is this competative? What in the world is D* thinking about? Why won't they release some info on this? I am sure that I am not the only (top paying group) one who is worried about this apparent disconnect.
 
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cablewithaview said:
Adopting a strategy used by cable operators, DirecTV Inc. in March will begin leasing its set-top boxes and digital-video recorders to its customers instead of selling them.
The nation’s largest direct-broadcast satellite provider, with 15 million subscribers, notified its retailers this month that it was migrating to a lease program effective March 1.
Those dealers were told that they would only be paid commissions for leasing DirecTV’s hardware to customers, not selling those receivers.
The change in strategy is aimed at ultimately helping to drive the rollout of advanced services like HDTV and interactive, which offer new revenue streams.
“Most of our multichannel competitors use this model,” senior vice president of sales and distribution Jim Arnold said. “It’s our version of it, and we think it’s very competitive with what they do.”
In a way, DirecTV’s move toward leasing and not selling its set-tops to consumers is ironic. Cable’s long-standing modus operandi has been to lease its hardware to subscribers.
On the flip side, cable operators -- long mindful of DBS’ big presence in consumer-electronics stores -- at times have tested selling, rather than leasing, set-tops.
DirecTV currently substantially subsidizes the cost of its set-tops to retailers. The DBS provider also pays retailers a commission on the DirecTV-programming subscriptions they sell to consumers.
Initially, the switch to leasing won’t impact consumers too much. For example, right now, subscribers with basic $39.99-per-month service already get their first standard receiver free-of-charge.
And a current promotion for the “DirecTV Plus” DVR won’t change. Subscribers will have to pay $99 for it, but they can mail in a $100 rebate form.
With leasing, a customer will pay $5.99 per month for digital recording service, get a standard set-top free-of-charge and pay $4.99 to lease a second receiver that includes a DVR.
For more on DirecTV’s lease program, please see Linda Moss’ story on page eight of Monday’s issue of Multichannel News.
http://www.multichannel.com/article/CA6301253.html?display=Breaking+News&referral=SUPP&nid=2226
Mail in rebate? now that's funny im still waiting as are a bunch of others on the rebates from the hd dvr bought months ago. directv is becoming a joke. and from what im reading here and other sites directv has certainly dropped in cust satisfaction recently imho
 
Ok, I have a question. I currently have a stand alone DirecTV HD receiver and an SD DirecTV Tivo unit. I want to replace both with 1 HD DVR and I would like to do it soon. I see 2 options. 1) Buy it now for $399 after rebate and then I own it OR 2) Wait for the lease option March 1st and I would pay $299 plus $4.99/month lease.
Is that right? Which way makes more sense? Especially considering the mpeg 4 boxes coming out. If I lease I assume that I'll be upgraded for free. If I buy? What happens then?
Any help would be appreciated, thanks!
 
I would think you buy now. Then lease later if you want when there is an upgrade. I didn't read anywhere that says you can't switch. Either way you pay the same amount whether they call it leasing the box or paying for a second room. It's all the same cost to you. As long as I understand this correctly.
 
Let me see if I get this whole lease thing right. I currently have an HR10-250 HD DVR, which I paid $1000 for last March and which I own. I don't pay the $7 monthly insurance fee (or whatever the amount is), so if my machine breaks down, I'm on the hook for the total cost of buying a new one.

With the upcoming switch from Mpeg-2 to mpeg-4, not to mention D* eventually dropping Tivo altogher, I will be forced to get D*'s new mpeg-4 HD DVR which won't be available until sometime in the second quarter of this year -- which will be after the new leasing policy starts. According to other threads on this site, D* will give me the new box at no cost, but I will apparently no longer own a HD-DVR, I will be leasing it.

On the one hand, this sucks because I will no longer own the unit. On the other hand, am I correct in assuming that because I will be leasing the new HD DVR that D* will responsible for replacing/repairing the unit if it breaks down (all without me having to pay a monthy insurance fee)?

Also, does anyone know if I will have to turn in my HR10-250 in return for getting the new, leased HD DVR?
 
The HR10 is yours.

I talked to DTV for an hour this morning because that was one of my questions: Why should I get the DVR now since I have to replace it mid summer and it's a lease.

Here is what was told by the customer retention CSR: Customers will have the OPTION to either lease or buy whatever new equipment comes out, if they buy direct from DTV. Leasing is only a MUST if bought from a retailer. I was told that this is to stop the five day activation and then return it to the store. That makes sense to me.

So it is just like a car after March the first. You can lease or buy, but their are trade offs.
 
elephant98 said:
Also, does anyone know if I will have to turn in my HR10-250 in return for getting the new, leased HD DVR?


I don't see how they could require you to return something you own.
 
scotsmanron said:
The HR10 is yours.

I talked to DTV for an hour this morning because that was one of my questions: Why should I get the DVR now since I have to replace it mid summer and it's a lease.

Here is what was told by the customer retention CSR: Customers will have the OPTION to either lease or buy whatever new equipment comes out, if they buy direct from DTV. Leasing is only a MUST if bought from a retailer. I was told that this is to stop the five day activation and then return it to the store. That makes sense to me.

So it is just like a car after March the first. You can lease or buy, but their are trade offs.


Ok, just like a car there is this residual that has to be paid up front? (the 299 for more advanced boxes which I would assume a HD DVR or the HMA is). Again I say, what in the world is D* thinking. If they are going to do the "cable model" thing, why would any box be available for retail anywhere & why would I pay upfront for it???

Why is this more attractive to me, as a customer???
 
There's something else that is not clear to me. I thought I read that because you will lease the hardware after paying a certain amount upfront, all future upgrades will be free. Did I misundertand this part? Does this mean that no matter what other receivers they make in the future, they will be totally free as long as you pay the monthly lease fee? Not even an upfront fee for future receivers?

If this is the case, I don't mind paying a one-time-only upfront fee for the first receiver after March 1st and then just pay the monthly lease fee with free upgrades.
 
scotsmanron said:
I was told that this is to stop the five day activation and then return it to the store.
Because they simply aren't satisfied, or is the "five day activation" some scheme?
 
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Tom J said:
Because they simply aren't satisfied, or is the "five day activation" some scheme?

I got the impression from the CSR that it was just like the large screen TV scam....get a large screen, a sat dish, have a party and return everything. Of course the bigbox stores stopped the easy return on the TV and now DTV has gotten smart.
 
mjitkop said:
If this is the case, I don't mind paying a one-time-only upfront fee for the first receiver after March 1st and then just pay the monthly lease fee with free upgrades.

They seem to be changing the rules for owners of boxes now(but of course none of us truly knows because directv has kept their mouth shut), what makes you think any promises they make today will be valid a year from now?
 
Directv leased equipment

Have the cable companies taken over the controlling interest in Directv.
It is probably true that most people want someone to come to their house and just get it done, but I want equipment I can open and expand the hard drive and run my own wiring but now that is going away.With THEIR receivers I can't touch it.
This better not mean I have to wait all day for an installer and pay a huge fee because I want my house wired the way I want.
Just my 2 cents worth since Directv just took my last dollar.:mad:
 
The other really great thing about this is the HSP's have been slashing tech's pay for 2 years and the turnover is skyrocketing. So by summer there will be very few good HSP techs left, you will have to pay for some newbie to come to your house and screw it up.
 
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A couple of questions about the 10-250

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