Latest Price Increase - $5
- Thread starter sklunk
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I'm curious how you make that claim based on the link you posted. The link shows Charter also adding a "locals surcharge", but their surcharge is only $4.47. Charter even says in the article "We've begun breaking out the broadcast TV surcharge as a specific line on customer statements, as we do in other Charter systems, to reflect the cost of local broadcast TV stations" Or do you think Dish is being charged more for locals?
I would bank Dish gets a better rate simply because they can reach more customers in just about every DMA.
Charter can only go where the cord goes.
That $10 fee is $5 for locals, and $5 for Charlie.
From all the info I am reading, and as I posted earlier, it can get confusing because articles are not careful in how they characterize the charge. DISH does not have a surcharge, they clearly extracted what they are charging for locals out of the packages. That is an important distinction. The others however including Charter have added a surcharge on top of leaving the original cost in the packages.
The result is the same as far as cost to the consumer, but analyzing when comparing providers takes a little more thought. This is no different than Directv and their RSN surcharges. Their surcharge is not what you are being charged for your RSN's, it is added to the total.
Directv RSN charges are broken down in each region.
Dish is not paying $10 for locals in each DMA.
I don't buy that for 1 second.
Dish is not paying $10 for locals in each DMA.
I don't buy that for 1 second.
I get what you are saying. Comcast has a surcharge for locals in my area, but my parents do not. So the "surcharge" is an amount over and above the average cost for locals applied to specific markets, while what Dish is doing is taking the average cost for all markets (plus their 10% profit) and breaking out the entire charge from the main package price.
I say that in some regions or cities DISH is being charged more than in others. But the $10.00 charge is the same regardless of where the customer lives. So Charlie is still making some profits on his locals. The separate $10.00 charge is to show the customers who they need to blame when the bill goes up after disputes over carriage come up. Now if he starts showing the exact charge for each network broke down in each city under the $10.00 charge, it would go a long way to transparency. Might direct the customer anger where it belongs in disputes.
I can almost guarantee content owners would never let that happen. They survive on the secrecy and bundling of their content.
Did you have to do the 2 year contract for the price freeze. Best I have been offered so far was $5.00 for 3 months.
Yes, that is basically it! The Surcharge is not the total being charged for locals.
You must sign the two year contract. You get the $10 reduction in cost for the eligible Top packages for two years, and no increase on the package. If it is the same as before you can also save another $5 with autopay.
Of course, you're assuming they only make a 10% profit on locals. Just because the company's profit margin is 10% doesn't mean it's equally 10% across every line item. Maybe they get a 15% profit margin on locals and 5% on sports. Or 20% on PPV and 0% on locals.
Lacking any other information, it's still the best assumption to make. It could also be 0% profit on all the programming, and they get all of their 10% profit margin from fees. However, if I had left out any mention of profit, there'd be naysayers complaining about that too.
Because assumptions are ALWAYS good.
Want to make an assumption, how about someone count ALL the locals Dish carries, divided by the number of markets (so now you have "average locals/market"), then divide by the $10/month. Now you have an "average cost/local". I'm guessing that will probably be $1 or less. Of course Dish is going to make a profit on locals. The question is how much. Also, how much overhead (rental space, electricity, equipment maintenance, fiber feeds, etc) is required to provide the locals? Is that cost factored in?
Dish's $10 charge may not be the total that they are charging for locals, either. Dish could have just as easily averaged the surcharge for the more expensive markets and included that in the base package price for everyone, only separating out the bare minimum charge for locals, just like the cable providers did the opposite of that.
And I can say DISH isn't even covering what it costs. We can come up with a 1000 different scenarios. I am going by what others are charging now for a surcharge, what they had been charging, what DISH charged before to add locals and what it is now. What part of that is profit is anyone's guess I have never said otherwise. What it costs beyond the actual payment to the locals is also not known.
What the actual payments to the locals is also not known. People seem to think that by putting a line item on the bill saying "locals", that's what Dish is paying for them. If Dish made that line item $20, would you believe that's what they're paying locals? It's more "spin" by Dish.
Yes, every penny of my Welcome Pack subscription is going toward the local channels. That is why Dish will not let me remove the locals from Welcome Pack.
