Ergen: “We really gave too good a deal"

[red hazard]

Here's an interesting article dtd 1 MARCH from the Denver Business Journal:
Denver Business Journal: Dish Network wonders if it

BOHICA!

 

[rad]

"Programming carried by satellite broadcasters and cable companies has grown markedly more expensive in recent months, too.

As a result, Dish Network may increase programming fees later this year.

So that's why Dish didn't upgrade programming costs last month, they are thinking of doing it later. Maybe they didn't want to hit folks with both the hardware costs increase and a programming increase at the same time.

 

[jcrandall]

Dish Network’s average customers pays nearly $70 per month, or $22 less than what El Segundo, Calif.-based DirecTV customers pay.

Not having the major sports packages will do that to you.

 

[tigerfan33]

Boy. This is comforting. I am sure ALL of Dish's subs were not a ware of it. Thanks for letting us know.

Charlie surprise the hell out of me sometime for what he says. Not in a good way.


“We really gave too good a deal, which was something our customers weren’t aware of,” Ergen said

 

[Voyager6]

Very interesting indeed.

Dish Network’s average customers pays nearly $70 per month, or $22 less than what El Segundo, Calif.-based DirecTV customers pay.
That spread creates room to raise rates, Dish Network executives said on a conference call with Wall Street analysts Monday.
It has already begun increasing hardware fees charged to some customers who were given breaks on set-top box fees in older promotions. Dish Network is also changing policies that didn’t charge customers the hardware cost of adding a second television to their account.
The cost increases won’t end there.
Programming carried by satellite broadcasters and cable companies has grown markedly more expensive in recent months, too.
As a result, Dish Network may increase programming fees later this year.

How about a break for existing customers that bought their own equipment without a discount from E*? I guess it is time to stop feeding the satellite pig. E* will definitely be going on a "diet" at my house.

 

[tigerfan33]

I am sure that some subs that have 61.5 are not feeling as enthusiastic as Charlie on "too good of a deal".

 

[satjay]

Hum, 70 is average for Dish?, I am guessing the absolute package playes a role and SD customers??

My bill is in the 90 mark/average with Direct

Though if I took away the 10.00 reciver fee and HD fee I would be in the 70 range

 

[rad]

Not having the major sports packages will do that to you.

DirecTV's 2009 ARPU was $85.48, that's not $22 more then Dish's $70.

 

[red hazard]

Boy. This is comforting. I am sure ALL of Dish's subs were not a ware of it. Thanks for letting us know.

Charlie surprise the hell out of me sometime for what he says. Not in a good way.


“We really gave too good a deal, which was something our customers weren’t aware of,” Ergen said

You heard it first here at SatelliteGuys.US!

 

[peano]

“We really gave too good a deal, which was something our customers weren’t aware of,” Ergen said.

Incredible arrogance and greed. Somebody should tell Charlie that Directv charges $5.00 for an HR23. He is charging me $22 for my 722. Not for long though. The pig feeding ends in a couple of weeks.

 

[Laddyboy]

It's currently pretty easy to get nearly all your programming OTA and by internet. I think E* may be a little mistaken in thinking they are so cheap compared to D*. I see very little difference in price myself and D* now has an advantage with high end subs with several DVRs. Also won't churn increase as E* matches D*'s rates? I've never been a D* sub but might be tempted to go there if E* loses its price advantage. With their higher hardware fees, they are going to write D*'s ads if programming packages are on par. They also won't be able to run their ads where they say E* is cheaper unless they really want a lawsuit. Doesn't sound very good for us subs unless they're talking a dollar or two. I'm guessing it'll be more like $5, maybe more.

 

[jerryez]

$70 times 14 million subs x 12 months = 11,billion, 760 million dollars per year. WOW!!!!! Not bad for a gross income.

 

[apollog]

That's why they make you agree to a 2 year agreement so they can screw you as much as they want and you can't do anything about it!!! :rant::rant::rant::rant:

 

[Scherrman]

Why is a 722 costing you $22 a month?

 

[EdZackery]

And you are not counting the millions of people that are paying 5. 10, 20, or more per month for programming they don't even get.

 

[jerryez]

Why is a 722 costing you $22 a month?

$17 Receiver fee and $5 dvr fee.

 

[bgothard72]

I'm just waiting on D to go HD crazy with the new bird!

 

[Jonhern]

I remember reading an article similar to this about FIOS last year, that the execs felt they were too good a deal and that they would do just fine raising their rates since people would be fine paying a premium for their superior service. All I read after that is how FIOS growth had slowed down significantly, and in public opinion, many people think its too expensive. A friend worked for a sales firm that sold fios and this is what he heard a lot from people. From the flyers we still get it seems they have reversed this and are now offering those low teaser rates again.

 

[Yespage]

That's why they make you agree to a 2 year agreement so they can screw you as much as they want and you can't do anything about it!!! :rant::rant::rant::rant:

That gets really old, really quickly. Granted, if you buy a receiver outright, you shouldn't be forced to sign up for 2 years, but some people want to get a really expensive receiver for free, and not be on the hook for a year or two over it. And how is Dish Network screwing anyone? I don't recall a substantial increase in fees, ie around 30+% in a two year period. People just want to pay 1995 pricing for something 20 years after the fact. That said, if you buy a Dish / Receiver outright, you shouldn't have to sign a contract at all.

 

[riffjim4069]

I find it hard to believe anything written in the article after reading the following statement. Apparently, the author doesn't realize several EchoStar DVR models were found to infringe years ago...the ruling was subsequently upheld during appeal...EchoStar was found in comtempt of a court order by not disabling DVR functionallity in their infringing DVRs...and E* has already paid Tivo hundreds of millions of dollars to date.

"Federal courts are expected to rule this spring whether digital video recorder technology made for Dish Network by its sister company EchoStar violated a TiVo patent. If courts side with TiVo, Dish Network may owe TiVo tens of millions of dollars in annual license fees for its set-top DVRs."

As far as programming prices continuing to rise out-of-control...all I can say is the "cable favorites" better be careful or the public outcry will lead to a la carte and other options.