Leaving Comcast for Dish - Why Two Years?

[rpolunsky]

Last year when I first started getting sick of Comcast, Dish was offering some good promotional packages. Now that I'm dead set on leaving, the only things I see require a two-year commitment. I don't even give my wife a two-year commitment.

Okay, honestly though, I'm going to have two HD TVs (one on the second floor, one on the first floor) and one regular TV (first floor separate room). I've worked out that the 250 channel package plus Gold HD gives us the channels we need, and I assume the downstairs HD receiver can feed the non-SD TV (it's only about 30-35 feet away subject to cable routing). Last year I think I could have done this for about 90 a month and no install fees, now I'm looking at 100 a month plus 99 activation (if one DVR) or 114 a month and 199 startup (if two DVRs).

Are there any one-year or no-year commitment deals out there, or have they just decided that it's two years to get anything out of them?

And what's the deal on this $30 per month disconnect fee I'm hearing about?

Richard in Houston - Go Horns, Go Astros

 

[Slamminc11]

a 2 year commitment makes sure Dish recoups the $$ they spent to have you as a customer (that's about how long it takes until you become profitable to Dish) and so they want to make sure they get their investment back. Hence the disco fee if you cancel early (and I hear it's going up in August).
Those receivers you want aren't cheap.

 

[whatchel1]

Pay back & offer

Last year when I first started getting sick of Comcast, Dish was offering some good promotional packages. Now that I'm dead set on leaving, the only things I see require a two-year commitment. I don't even give my wife a two-year commitment.

Okay, honestly though, I'm going to have two HD TVs (one on the second floor, one on the first floor) and one regular TV (first floor separate room). I've worked out that the 250 channel package plus Gold HD gives us the channels we need, and I assume the downstairs HD receiver can feed the non-SD TV (it's only about 30-35 feet away subject to cable routing). Last year I think I could have done this for about 90 a month and no install fees, now I'm looking at 100 a month plus 99 activation (if one DVR) or 114 a month and 199 startup (if two DVRs).

Are there any one-year or no-year commitment deals out there, or have they just decided that it's two years to get anything out of them?

And what's the deal on this $30 per month disconnect fee I'm hearing about?

Richard in Houston - Go Horns, Go Astros

I can only answer the commitment part. The 2 years is basically the fact that they are putting out a good bit of out front money on the equipment that you are going to be leasing. Now if you PM me I can give a Club Dish referral to knock of the 99 activation.

 

[whatchel1]

Welcome to the forum

 

[Smith P.]

Dish want you money and want to guarantee the flow.

As to profitable level, it's pure speculation here - we don't have access to their books. Personally after more then 10 years of experience with full price IRD then 1 year lease requirement then two year of that ( and the company always had good margin and revenue) I doubt in the repeated on Internet sites Dish PR propaganda.

 

[KAB]

Your figures are off. If you accept the commitment, there are no startup/activation fees. If you don't want the commitment, then you pay them.
Plus, as new customer you will only be paying $32.99 for six months for the 250 + HD package.

 

[Pen15head]

you get 25.00 of a month for 6 months wtih the contract. so you save paying the 99.00 plus you get an extra 150.00 in credits. thats 249.00 diff between the commit and non-commit in the first 6 months. so if you keep dish for about year and then cancel, you would pretty much break even after paying the prorated cancellation fee.

 

[Rangers484]

To the OP, 2 year contract for the same reasons as your cell phone company. The equipment you are getting for next to nothing.

Dish is "giving" (really leasing) you several hundred if not almost a thousand dollars worth of equipment between receivers, dish, switches and labor to install. The customer acquisition cost is pretty high.

This is their way of guaranteeing a return on their investment.

 

[SpaethCo]

Keep in mind that the cancellation fee is prorated if you end your contract early. Right now it's a $240 early termination fee over a 24 month term, so the fee decreases by $10 every month you have the service. (ie, cancel after a year and it drops to $120)

The 24 month commitment usually yields pretty significant savings up front, such that your break even point actually occurs well before 24 months.

 

[DishSubLA]

2 year commitment is now the standard for Direct TV and many other services such as cell phones. It stinks, but it is not unusual.