Dish Network Satellite TV Announces New Value Paks With HBO/Cinemax

[John Corn]

Dish Network Satellite TV Announces New Value Paks With HBO/Cinemax; New Bundled Programming Packages Provide Best Entertainment Value

LITTLETON, Colo. & NEW YORK--(BUSINESS WIRE)--Jan. 9, 2003--EchoStar Communications Corporation (Nasdaq:DISH) and its DISH Network announced today the introduction of DISH Network Value Paks with HBO/Cinemax that represents savings for customers and a great value in pay television.

The DISH Network Value Pak with HBO/Cinemax provides more than 125 channels and starts at $49.99 per month, offering customers unlimited access to eight HBO channels, five Cinemax channels and DISH Network's America's Top 100 programming package. This represents a $2.99 per month reduction from current rates. DISH Network's Value Pak with HBO/Cinemax is also available with America's Top 150 programming package, providing more than 180 channels for only an additional $10 per month. This represents a $1.99 per month reduction from current rates. These new bundled entertainment packages are available for both new and existing customers starting Feb. 1, 2003.

"DISH Network is excited to bring together for our customers combinations of basic and premium programming for a new low bundled price," said Michael Schwimmer, senior vice president of Programming at EchoStar. "Our customers will be pleased that when they subscribe to a DISH Network Value Pak with HBO/Cinemax, they are receiving one of the best values in entertainment."

Subscribers to the package will not only have access to HBO series like "The Sopranos(R)," "Sex and the City(R)," and "Six Feet Under(SM)," but they will also receive a great theatrical lineup on Cinemax, including hits like "A Beautiful Mind," "Ocean's Eleven," and "Harry Potter and the Sorcerer's Stone."

Also starting Feb. 1, 2003, DISH Network will offer two new premium movie channels from Cinemax: ActionMAX and 5StarMAX. ActionMAX delivers the most action movies, 24 hours a day, from westerns to war movies and rarely available martial arts films. 5StarMAX, a channel ideal for all ages, features movies with the broadest appeal.


http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=dish&script=410&layout=-6&item_id=368949

[bryan27]

Oh, what a value. Not! I will never pay $50/mo for TV. A "value pak" would be locals & a few basic cable channels for $15.

[gcutler]

Well at least Cinemax is now 5 channels, still over priced.

[jeffwtux]

Wait a second, did I get that correct. AT100+HBO/Cin is $49.99 but AT150 with the same pack is $59.99? That means they are encouraging you to stay at AT100. Should't they be offering the bigger incentive to AT150 subscribers, like $57.99 for the package. That would be more like it. Their ads always say that AT150 is only $9 more. Now it will be 10. This is stupid from the management perspective, IMHO.

[jeffwtux]

I have yet another stupid question. Aren't they putting the cart ahead of the horse here. Aren't they supposed to announce the package savings AFTER the rate hike. That's what MY SCRIPT SAYS. Did we skip a few lines here? They aren't going to raise the price of these PAKs 2 weeks after they announced them, are they? That would look very DOMB.

[shilton]

Originally posted by bryan27
Oh, what a value. Not! I will never pay $50/mo for TV. A "value pak" would be locals & a few basic cable channels for $15.
If locals and a few basic channels is all you are after...why have satellite tv in the first place...ITS CALLED BASIC cable and its about $12-15.00 per month. You get locals and the VERY basic few stations.

[cnsf]

What about those with the Everything Pak? Spend the most and get no break....gotta love it.

I think it's a prep for the upcoming rate hikes. Trying to establish some goodwill by reducing rates by a buck or two, then get ready for a bigger hike.

[Mike123abc]

I do not understand why the continued lack of support for Cinemax channels... After how long they add 2 more feeds, but there is still:

1) ThrillerMax
2) WMax
3) OuterMax
4) @Max

You would think that HBO owning Cinemax would be pushing to carry more of the "max" channels so that it would sell more. As a person deciding between movie packages, most probably would not pick Cinemax because it was only 2 (plus a west coast feed) channels for the same price as other packages that offered far more channels.

[cnsf]

It's the "Skin-eMAX" factor that got people. The closest thing to porn for less than $9.99 an hour.....

[Jacob S]

Hmmm, charge $10 more for a package when it is really only $9 more? That is odd, but I think they are doing it that way to round the numbers off, instead of selling top 100 hbo/max for $50.99 a month, they just sell that one package for a buck less to make it round numbers. Thats what I think.

If they were to make the top 150 package $10 more instead of $9 more then it would round off, maybe thats what they will do in a price increase.

Also, at the current prices, top 150 is $40.99 and hbo/max combo is $20.99 a month, therefore it is $61.98 a month, a $1.99 a month savings at the current prices. The top 100 is $31.99 +$20.99 for hbo/max combo equals to $52.98 a month, a $2.99 a month savings at the current prices. Notice I say current prices and notice the news report says current prices. This is stupid to go and raise them the next month.

----------------------------------------------------------------------------------
top 150 pack -> 40.99 + 20.99 = 61.98 = 1.99 savings per month
top 100 pack -> 31.99 + 20.99 = 52.98 = 2.99 savings per month
----------------------------------------------------------------------------------

So it is either one of two things, either they are just raising the price on the top 50 package by $2 up to $24.99 a month or they are announcing these prices right before a rate hike, in which is the stupidest thing Dish ever has done, because if they would have announced the new prices they could have announced a bigger savings of $2 which would be $3.99 and $4.99 a month in combination with those packages or they are going to raise the combo packages next month and this will make customers MAD not happy about a combo package. Not very good marketing strategy if you ask me.

Maybe they wanted to announce the packages earlier in which would result in them not being able to announce the additional savings after a price hike, but why not announce the new prices instead of the savings at current prices? Maybe it would cause confusion, problems, and so forth.

[Kosh_5x5]

Currently I pay the following (ignoring the .01), $32 for the AT100 and $23 for HBO/Showtime for a total of $55. After the $2 increase to the AT100, I will pay $57. Currently, to add another money channel package, I would pay an additional $7.

If I add Cinemax to take advantage of the AT100/HBO/Cinemax offer above for $50 and keep Showtime for an additional $7, I will pay a total of $57. Essentially, I get to add Cinemax for free. Is this how it will work or are they going to increase the cost of adding the 3rd movie channel to the package?

Thanks for any speculation.

The Vorlon

[tampa8]

If I am correct, we have missed the whole concept of what is happening. Yes there is going to be a $2 increase to the three tiers.
But you can not only avoid that increase, but have a decrease if you subscribe to HBO/Cinemax. It appears your savings after the increase will actually be $3.99 if you get this combo.

Now 150 = $40.99 HBO/Cinemax = $20.99 Total = $61.98
After increase 150 = $42.99 HBO/Cinemax = $20.99 Total =$63.98
But the new combo rate is $59.99 $63.98 - 59.99 =$3.99 savings

As for why Dish is going from $9 to $10 difference from At100 to Top 150 with the combo, I think you have to at least consider there may be a reason. I have to think that they would have liked to go up $3 for AT150 because of the cost of the programming in it, but knew that would not look "as good" as making a $2 increase across the board. But to help defray that, they must have thought making the difference between At100 with the combo and AT150 with the combo $10 instead of $9 would not be as objectionable. If that $1 really upsets you enough to go to or stay at AT100 then I don't think anything I say will change your mind.

I have to think Dish has made a deal with HBO for HBO to lower the cost to Dish when a subcriber buys these combos. To me, if you do not get the HBO/Cinemax combo and end up paying $2 more, that is not that bad of an increase. If you do get that combo, It appears to be a good deal, especially with the addition of two more Cinemax channels.

I also must add, While we of course would like there to be no increases, that simply is not the real world. Even to equate getting more channels to justify an increase is not always real world. Though not any great big deal in the world of business, I do oversee a budget of $550,000 for our Fire Department. Things like electricity, fuel, and many many other items always go up in cost to us, outpacing increase in budgeting from the Town. This is true for any business. If we had rates to increase, we would have to. As it is, we have to do without sometimes in order to provide service.

So yes, we should always compare rates and service from different providers, and if a better deal can be had perhaps it would be time to change providers. But to constantly bash Dish over this increase just doesn't add up to me. My increases since 1999 have been minimal, and in fact because I do get the combo, my rates will go down - either $1.99 or $3.99 depending on how you want to see it.

[jerryez]

The at100 is actually 125 channels and the at150 is 180 channels. Why not change the title of the packages to reflect the addtional channels at the same time as the increase to make it sound like new packages for the increase. Not smart marketing.

[Jacob S]

Because they cannot change the name of the packages all of the time. They will wait until getting 200 channels before making that name change, and I would think 125 would be enough but they will probably wait until 150 unless people will get that confused with the previous 150.

Here is a theory I have. They will wait until it is 150 and then the 150 package will be the same price as the old 150 was by the time the rate hikes come in and the channel additions. Same way with the top 50 package when it becomes the top 100 pacakge, if it gets that far, or they will just add the music channels to the 50 when they make it to 100 to make it 100 channels.

[Eyedox]

Regardless, it's still assinine that they would give a better price break to the AT100 subscribers for this new Value Pack than people getting the more expensive AT150. How stupid is that? I agree also about them needing to add the other 4 new CINEMAX channels (ThrillerMAX, PornaMAX, SexaMAX, etc.) before its still worthwhile.

[jeffwtux]

They also should've given a price break for AT100 + locals to soften the blow, like with AT50. Anybody new customer who chooses Dish over Direc with AT100, in an are that both have locals in, would be a complete idiot to choose Dish, and that my friends is the majority of new customers. AT100+locals. DISH IS DEAD, and so am I. The World is coming to an end(well at least Dish is). You people say that people aren't so concerned about a buck or two.

MY WHOLE BUSINESS IS ABOUT SAVING A BUCK OR TWO,\

[TV38]

Originally posted by jeffwtux
They also should've given a price break for AT100 + locals to soften the blow, like with AT50. Anybody new customer who chooses Dish over Direc with AT100, in an are that both have locals in, would be a complete idiot to choose Dish, and that my friends is the majority of new customers. AT100+locals. DISH IS DEAD, and so am I. The World is coming to an end(well at least Dish is). You people say that people aren't so concerned about a buck or two.

MY WHOLE BUSINESS IS ABOUT SAVING A BUCK OR TWO,\

I would have to say then, you should find another business. But I mean that in a nice way - I just don't know how else to say it. Prices are going to go up. I agree with the post above - that is real world. Maybe Dish will end up somewhat higher than direct for awhile, then Direct will be higher etc... remember, for many the price is going DOWN. Comparing for a moment Dish new prices to Cable, Dish is FAR cheaper than what our cable is with more channels.

[Jacob S]

Just because it was Dish's turn to be higher dont mean they are the bad guy.

[jeffwtux]

It won't be Dish's "Turn to be higher" until they offer more channels. It's that simple. I can't stand you trolls try to rationalize this, or chaulk it up to an unsolved randome mystery. When DirecTV was more, THEY HAD MORE CHANNELS!!!!! They weren't more money because it was "their turn". They were more money because the market would pay more for more channels. Dish is more money for less channes. It's that simple. They aren't as good of deal.

[jeffwtux]

THIS ISN'T ABOUT 'WHO'S TURN' IT IS.
That is the worst explanation I have ever heard. I heard that Chevy Malibu's are going to be more than Corvettes this year because it's their turn to be more money. It just happened that way. Chevrolet rolled the dice and Malibu's came up as the most expensive. It was their turn.

[jeffwtux]

This is my business and my livelihood they are messing with, and I'm going to make my opinion known. Plus, if I don't feel enough people are being vocal, I feel I have to make up for their lack of interest. My goal when I call a customer service rep from any company(I haven't even once called DISH about this price increase) to complain about something that I think I've been ripped off on, my goal is simple. I know they are the low (wo)men on totum pole. I realize that it will have to go pretty far up the chain of command to make a difference. I just want to be the one they talk about in the breakroom for a coffee break. "You've got to hear about this jerk I just got off the phone with..." That's power.

[tampa8]

I don't agree at all with jeffwtux's position on this but I absolutely can see where he is coming from as a dealer. For new customers it might make Dish a harder sell - I don't know. But I can't help but feel that for the vast majority of current Dish subscribers this increase will mean nothing, and they will pay it. And for many this will actually be a decrease in cost.

[jeffwtux]

I guess there is a plus to these rate hikes(can you believe I said that?!?!?!!?!). Remember all the mocking we gave Charlie when they announced the $39.99 DishPAK(AT50+locals+Starz). It saved a whole $0.98. Well now it saves $2.98. Of course I haven't been bashing the AT50 rate hike, only the AT100 and AT150 rate hikes.

[tampa8]

Originally posted by jeffwtux
I guess there is a plus to these rate hikes(can you believe I said that?!?!?!!?!). Remember all the mocking we gave Charlie when they announced the $39.99 DishPAK(AT50+locals+Starz). It saved a whole $0.98. Well now it saves $2.98. Of course I haven't been bashing the AT50 rate hike, only the AT100 and AT150 rate hikes.

Yes I remember that $0.98, and it sounds as rediculas now as it did then!
:D

[Chris Freeland]

Originally posted by jeffwtux
This is my business and my livelihood they are messing with, and I'm going to make my opinion known. Plus, if I don't feel enough people are being vocal, I feel I have to make up for their lack of interest. My goal when I call a customer service rep from any company(I haven't even once called DISH about this price increase) to complain about something that I think I've been ripped off on, my goal is simple. I know they are the low (wo)men on totum pole. I realize that it will have to go pretty far up the chain of command to make a difference. I just want to be the one they talk about in the breakroom for a coffee break. "You've got to hear about this jerk I just got off the phone with..." That's power.

Why don't you sell both E* and D*? This way no matter who offers the better deal at any given time you have it to offer your customers. I used to work for a independent satellite dealer in N. GA, we pushed E*, however we were authorized to sell D*, P* and BUD's too, and they still handle all 3 remaining formats and Home Theater too and seam to be doing quite well. I say the more diverse the better.

[jeffwtux]

D* rejected my application. I don't do enough business volume in other areas.

[jeffwtux]

tampa8: I'll tell you one thing for certain. A $2 rate hike doesn't often make it easier to sell.

[shilton]

Originally posted by jeffwtux
This is my business and my livelihood they are messing with, and I'm going to make my opinion known. Plus, if I don't feel enough people are being vocal, I feel I have to make up for their lack of interest. My goal when I call a customer service rep from any company(I haven't even once called DISH about this price increase) to complain about something that I think I've been ripped off on, my goal is simple. I know they are the low (wo)men on totum pole. I realize that it will have to go pretty far up the chain of command to make a difference. I just want to be the one they talk about in the breakroom for a coffee break. "You've got to hear about this jerk I just got off the phone with..." That's power.
All I'm saying is I am sure glad you don't represent any product I am selling. Simple concept...I would want persons who BELIEVE in my product to represent it. I run a MULTI-MILLION dollar business and sometimes were are higher priced, sometimes we are lower. When we are higher, you'll never hear me squabbling about it, I try to put a positive spin on it and keep churning away to my customers. I guess you can't focus on the expansion Dish has had already and the more expansion that is coming in the way of locals, etc. Seems to me if you can't see a gazillion new stations that no one wants added to the E* packages, you can't say anything good. Why don't you just go sell D* if you like them better???

[Jacob S]

I got into the business because of it being a hobby and enjoying the product that I sell. You have to like what you sell to be able to promote it well.

[jeffwtux]

Well I got into the business because I wanted to compete against Time Warner Cable which was blackmailing our city over digital cable and cable modems. They won that battle but lost the war when they were forced to sell back to the same company they bought from at a major loss. They wanted to eventually to sell to the bigger wallets of Comcast which owned every other city in the Metro Detroit area.
I love politics, and this IS POLITICS. I also love getting and giving the best deals. I want people who want the best deal. I don't have the best deal to give anymore, and I give away about 30% of my commission on every sale.

[Jacob S]

I started it when Primestar was in full swing and they got to charging people for ppv's that they did not order and different things and I had Primestar for 3 months and cancelled. I figured there would be a better deal out there and seen the offer Dish had for Prime subs and so I changed them over. That is how I begun, giving the customers a good deal. It then became my hobby as well because I enjoy doing this type of work.

I try to give customers a good deal but with the increased backcharges that I get and customers not paying their bills due to the bad economy after 9/11 and bad economy around here, it makes it hard to reduce price on equipment to have a risk of losing money later. With the new deals where the customers get credit, the customers order more programming then cannot afford it when they wait a month and get the next bill for the 3 rd month combined with the first 2. I tell the customers to come to me if they have problems so I can try to help them out. I try to cut deals when I can but its hard to anymore because of the risk. I used to sell some for 40% off and gave credit for their DirecTv equipment if they had any as an incentive.

[Ken_F]

Cinemax in HDTV is coming this fall, so I was glad to see the reduced rates for this package. Hopefully these new rates will remain when the Cinemax HD channel is added.

[Jacob S]

I doubt that because they have been charging extra for the other HD channels I believe. I remember when you got the HD included in the regular package.

[Ken_F]

Jacob,

There is no additional cost for HDTV premiums on either provider. You subscribe to HBO on either Dish or DirecTV, and you get HBO HDTV. The same goes for Showtime. Currently, neither HBO nor Showtime will permit providers to offer their HD channels separately.

[Jacob S]

Then if someone wanted just the HD channels they have to purchase the whole package to get each channel, that is not good in itself. I think the new provider (rainbow) at 61.5 is going to have them available individually and/or in packages.

[Marcus S]

New & Hot off E* web site, sub up today offers...
http://www.dishnetwork.com/content/support/price_increase/index.shtml

[raj2001]

Originally posted by gcutler
Well at least Cinemax is now 5 channels, still over priced.

I dropped all my movie channels. No time to watch them all, and nothing worth watching. I was throwing away money. Now I think I'll just rent DVD's when I feel the occasional need for a movie.

[jeffwtux]

Personally, I think these "Value Pakes are a stupid marketing scam and waste of time. By focusing on the round number price, they give the impression that these are fixed prices that will at least stay around for at least over a year. I mean the original(it was less than 6 months ago and already gone) DishPak didn't even make it one year. They basically raise the rates and then try to come up with some combos that are a couple of bucks above $30,$40,$50, or $60 and then round them down to it. It's an arbitrary and temporary scam. Just offer good prices on good basic packages no matter where they fall. Don't be obssessed with the round numbers because those are just conicidence.

[jeffwtux]

Sorry, I meant "Value Paks" on the first line.

[jeffwtux]

I mean their trying to market these packages so people will say, "Wow, I can get AT50+HBO+Cinemax for under $60!". Well, in 12 months you won't. Either you have a combos with savings no matter what exact configuration or none at all. Don't have a combo because it happens to fall on a round number. The perfect example is AT150+HBO+Cin. You get LESS savings than with AT100, all because it happens to fall on a round number with less savings

[Marcus S]

No, Dish is guarantying 1 year fixed rate if you sub. I have 100 + HBO today, so it's a good deal if you consider what the previous HBO/Cinemax package cost before.

$31.99 + $13.99 = $45.98 (old plan)
$31.99 + $20.99 = $52.98 (old plan)
$33.99 + $13.99 = $47.98 (new plan)
$49.99 = Dish 100, 8 HBO, 5 Cinemax (new plan)

[Jacob S]

Not bad, seems like a decent deal for some, but I hope they will work a little more on this as well, as it is only a few bucks.