Does DirecTV encourage customers to terminate thier service every 2 years?

[bjtwuk]

I became a DirecTV subscriber exactly 3 years ago today. I have standard definition DVR service. I would like to upgrade to high definition DVR service.

DirecTV gave me the following quote with a 24 month commitment:

My charges would be calculated as follows:
One-time HD DVR payment: $199.00
Shipping and handling: $20.00
Monthly HD Access $9.99
Monthly DVR Access $5.99
Monthly Choice XTRA $57.99
Total cost for 24 months: 199 + 20 + 24 * (9.99 + 5.99 + 57.99) = $1,994.28

On the other hand, I could cancel my service and have my boyfriend sign up for service using Costco at our same street address, but in his name and with a his own telephone number and credit card number. In that case ...

His charges would be calculated as follows:
One-time HD DVR payment: $0.00
Shipping and handling: $0.00
Plus HD DVR: $72.99
Free HD Access: -9.99 (3 months)
New customer discount: -23.00 (12 months)
Costco Rebate: -50.00
Total cost for 24 months: 0 + 0 + (72.99 *24) - (3*9.99) - (12*23) - 50 = $1,395.79

Cost savings to change service to my boyfriend's name: $578.49

$578.49 is a significant amount of money. Am I missing something here, or does DirecTV want me to change the name on the service to my home?

[Stuart Sweet]

First, :welcome_s to DIRECTV.

There's some question as to the ethics of what you're proposing. You clearly know that you're intending to skirt the rules, but is it good negotiating or bad faith? I can't tell you that.

My suggestion to you is to take the matter further. Call again and explain the deal you would like, politely but firmly. It's not impossible for you to get that same deal without canceling, but do be prepared to cancel if you can't, because if you threaten to leave they may take you up on it.

[idigg]

Sign up as your boyfriend, who cares about rules (I'm being serious).

DirecTV's "ethics" is so ridiculous, they give different deals to different people, etc. You need to lookout for yourself these days and do what you can to save money.

[bjtwuk]

Hey Stuart, thanks for responding to my question so fast. Companies make the rules that they want their customers to live by, and I simply intend to follow the rules. I don't think that there is anything unethical to what DirecTV appears to want me to do. I asked the Forum if DirecTV was encouraging this type of behavior; it doesn't appear to be an ethics question to me. It appears to me that DirecTV wants to stimulate customer "churn".

[hangman]

I believe that in order to be considered a new customer and qualify for those promotional deals, you will have to have not been a DirecTV customer for at least 2 years. It would work in your case, since it is your boyfriend's name and not yours, but if you tried to put it in your name after cancelling... Say within 6 months or so.. You would still be treated as an existing customer. So in that regard, I don't see it as them encouraging churn, but more of a loophole that you can use to your advantage.

Someone please correct me if I'm wrong. It's very possible.

[mobandit]

Hey Stuart, thanks for responding to my question so fast. Companies make the rules that they want their customers to live by, and I simply intend to follow the rules. I don't think that there is anything unethical to what DirecTV appears to want me to do. I asked the Forum if DirecTV was encouraging this type of behavior; it doesn't appear to be an ethics question to me. It appears to me that DirecTV wants to stimulate customer "churn".

I disagree, they would be stupid to try and generate churn in their customer base. But what is true is that in order to entice new customers, especially those who are using competing services, they offer loss deals, hoping to expand their customer base. The existing customers do not generally get to participate in these types of deals, remember, they may be a "loss" deal, where DirecTV actually loses money on the initial setup. It isn't that they don't appreciate the existing customer, but it is more important to generate growth.

It is an ethical question, how you answer it is up to your own personal moral code. Some have already expressed their version of their personal moral code...to each their own.

[Stuart Sweet]

As I said, it's up to you how ethical you think that all is. Some people would just call it using the rules to one's own advantage.

bjtwuk, I do think you can have a win-win if you are prepared to cancel, simply by saying to the person on the other line, nicely and politely, that you would like "this deal" or please cancel you right away.

[curt8403]

directv can and will catch you if you attempt to create a new account at the same address and phone number, or phone number and last name. You will be penalized for doing so, and will not get the new customer offer. Directv also will work with you to give you a deal after your agreement is finished.

[bjtwuk]

directv can and will catch you if you attempt to create a new account at the same address and phone number, or phone number and last name. You will be penalized for doing so, and will not get the new customer offer. Directv also will work with you to give you a deal after your agreement is finished.

I guess that's why I proposed using my boyfriend's name, his phone number and his credit card.

[idigg]

Exactly, I would do the same thing if I wasn't married. Different last name, different credit and phone number. No ethic issue here at all, please move along.

[LameLefty]

I believe that in order to be considered a new customer and qualify for those promotional deals, you will have to have not been a DirecTV customer for at least 2 years.

I don't know if that's true or not. I first sub'd from April 1997 - September 2000 when I got divorced and ended up in an apartment for a year or so. Resub'd in October 2001 when I got into a new house and got everything settled into place. When I resub'd I was treated like a new customer and so far as I know got a new account number and everything. :confused:

[PCampbell]

I asked nice and got the upgrade for 19.95 shipping, install and dish free. If you have never been late for a payment and been a customer for a couple of years they like to keep you. You wil get a two year contract.

[hangman]

I don't know if that's true or not. I first sub'd from April 1997 - September 2000 when I got divorced and ended up in an apartment for a year or so. Resub'd in October 2001 when I got into a new house and got everything settled into place. When I resub'd I was treated like a new customer and so far as I know got a new account number and everything. :confused:

From my understanding, a flag goes up during the new activation process (during the credit check I believe) that states whether or not the customer has been a subscriber in the last 2 years. If it has been within 2 years, the retailer is not able to continue.

Corporate may have a workaround for this that others are not able to use, however.

Or it could also be that the policy wasn't in place back then? Not sure.

[rudeney]

I don't know if that's true or not. I first sub'd from April 1997 - September 2000 when I got divorced and ended up in an apartment for a year or so. Resub'd in October 2001 when I got into a new house and got everything settled into place. When I resub'd I was treated like a new customer and so far as I know got a new account number and everything. :confused:

I think this scenario is exactly why they have Mover's Connection which can also offer deals over and above what a typical front-line CSR can handle. In your case, D* has to count your moves as two "disconnects" which increases the churn rate. With Mover's, they keep you and it doesn't affect churn.

Now, back to the OP...

Call the D* 800 number and when you get the voice prompt, say "cancel service". this will route your call to the customer retention department. When you get a CSR on the line, DO NOT threaten to cancel. Instead, explain nicely that you have been a customer for three years and that your commitment is up. Tell the CSR that you had previously called to inquire about upgrading to an HD-DVR, and that the prices you were quoted seemed awfully high. State that you are considering all your options to upgrade to HD (cable, Dish, FIOS, Uverse, etc., whatever is in your area). Ask the CSR to give you their best competitive offer to keep your business. I'll bet you get a decent deal and you won;t have to worry about switching accounts.

[Stuart Sweet]

Rudeney, your script is very much what I would suggest as well.

[narrod]

I became a DirecTV subscriber exactly 3 years ago today. I have standard definition DVR service. I would like to upgrade to high definition DVR service.

DirecTV gave me the following quote with a 24 month commitment:

My charges would be calculated as follows:
One-time HD DVR payment: $199.00
Shipping and handling: $20.00
Monthly HD Access $9.99
Monthly DVR Access $5.99
Monthly Choice XTRA $57.99
Total cost for 24 months: 199 + 20 + 24 * (9.99 + 5.99 + 57.99) = $1,994.28

On the other hand, I could cancel my service and have my boyfriend sign up for service using Costco at our same street address, but in his name and with a his own telephone number and credit card number. In that case ...

His charges would be calculated as follows:
One-time HD DVR payment: $0.00
Shipping and handling: $0.00
Plus HD DVR: $72.99
Free HD Access: -9.99 (3 months)
New customer discount: -23.00 (12 months)
Costco Rebate: -50.00
Total cost for 24 months: 0 + 0 + (72.99 *24) - (3*9.99) - (12*23) - 50 = $1,395.79

Cost savings to change service to my boyfriend's name: $578.49

$578.49 is a significant amount of money. Am I missing something here, or does DirecTV want me to change the name on the service to my home?

Do whatever makes best sense for you. Either way, DirecTv is getting the revenue. I don't accept the position that it is an ethics issue. DirecTv is the reason many subscribers have to play games to get a decent deal. No two CSRs tell you the same thing, different callers get different deals and a complete lack of consistency. I've been a customer for 9 years with multiple premium services and NEVER late with a payment. I paid a full price for my first HR10-250 and have not paid a dime for my subesquent HD DVRs. I have no intention of ever doing so. If DirecTv wants my business they have to earn it. My obligation is to pay my bill in full and on time. If DirecTv doesn't want my business on these terms, so be it. It's just television.

[mxyztplk]

Re: ethics of your proposal

Is it a violation of the terms of your current agreement to cancel it? [Answer: NO]

Is it a violation of the terms of the proposed agreement for your boyfriend to enter into it? [Answer: NO]

Is it a violation of the terms of the agreements to have other people view the programming, in a residential setting? [Answer: NO]

Is your boyfriend a different person than you? [Answer: YES]

Does DirecTV have a prohibition against friends or relatives of a former customer being considered a "new customer"? [Answer: NO]

Has anyone lied to DirecTV? [Presumed answer: NO]

Conclusion: The proposal is ethical, by business standards. If DirecTV wishes to define a "new customer" more stringently that at present, it is perfectly free to do so at any time.

[harsh]

You're only a virgin once.

As DIRECTV's average Subscriber Acquisition Cost has topped $700 per customer, expect to see 30 or 36 month commitments in the not too distant future. The SD people aren't going to continue to subsidize the HD customers forever.

[danman71]

I had something similiar. DirecTV traded in my old DVR for a $100 credit, so I got the HD-DVR for $99 instead of $199.

Never hurts to ask

[koko]

On the other hand, I could cancel my service and have my boyfriend sign up for service using Costco at our same street address, but in his name and with a his own telephone number and credit card number. In that case ...

That's exactly what I did when we moved. Used my wife's name. Got a free HD receiver, new dish, and some free HBO...

Of couse, when you call to cancel, make your demands known. A little negotiation never hurts.

[cariera]

I guess that's why I proposed using my boyfriend's name, his phone number and his credit card.


Make sure your boyfriend knows he will have a 2 year commitment (to Directv - his commitment to you may hopefully be longer):)

[Mertzen]

I believe that in order to be considered a new customer and qualify for those promotional deals, you will have to have not been a DirecTV customer for at least 2 years. It would work in your case, since it is your boyfriend's name and not yours, b.

Be very careful with this. D* goes after existing / old accounts with a vengeance. Make sure if you do this you cancel the old account with no balance due. Otherwise your new account can be terminated.

Happened to my office this week. Cust called in for new service. I install, few hours after activation boxes go black. Ended up cust. husband had an account with $500 due. D* told her to pay up to get the new account activated.

[Herdfan]

As I said, it's up to you how ethical you think that all is. Some people would just call it using the rules to one's own advantage.

But DirecTV provides these benefits to encourage new customers to sign up for service. More total customers helps lower the cost per customer which should help keep increases at a minumum.

What you are proposing, while within the rules, causes DirecTV to experience higher costs which will be passed on to all customers.

[narrod]

But DirecTV provides these benefits to encourage new customers to sign up for service. More total customers helps lower the cost per customer which should help keep increases at a minumum.

What you are proposing, while within the rules, causes DirecTV to experience higher costs which will be passed on to all customers.

How much of previous rates increases is tied to providing discounts to current customers? I doubt what you contend but I am willing to be convinced. Any successful business does what it can to retain its' current customers. One way you do that is a well trained sales/service force with consistent policies that takes care of the installed customer base.

[dodge boy]

Exactly, I would do the same thing if I wasn't married. Different last name, different credit and phone number. No ethic issue here at all, please move along.

Just get divoriced and live together, go back to your maiden name and keep switching account holder every 2 years. It's not an ethic issue here either, marriage is just a piece of paper, like a car title you sign over to someonelse...:)

[dodge boy]

I had something similiar. DirecTV traded in my old DVR for a $100 credit, so I got the HD-DVR for $99 instead of $199.

Never hurts to ask

That's the deal I got. That is the standard one now.

[bradpr]

There's some question as to the ethics of what you're proposing.

Ethics??? What ethical question is there, Stuart??? Surely you're joking.

BJT, There is no ethical question here & don't listen to anyone who tries to tell you otherwise.

USE THE SITUATION TO YOUR ADVANTAGE! As a D* customer, you're playing a game with D* every day. They're trying to squeeze you for all the money they can & you should be constantly seeking ways to get free/discounted services & equipment from them. Many folks here will tell you that you have to be a good negotiator, and that's true, that helps you not get screwed by D*. My advice is to screw D* whenever you get the chance as well as being a good negotiator.

You are D*'s customer and they serve you. They're not doing you any favors - ever! Be shrewd and ruthless & don't feel bad about it for a second. D* has no problem sticking you with a 2 year commit and a $200 for a receiver upgrade after you've been a customer for 3 years! That's bulls***! Take what you can get from them whenever you can get it (be sure they'll take what they can from you)!!!

[inkahauts]

Well.. I have lots of opinions on this topic, some directly related to this particular issue, some that are more general...

For this specific issue...

First off, I'd try calling at least one or two more times, making sure to get retention and telling them simply your looking at all new options, etc... and while you'd like to stay with Directv, you will go elsewhere if they aren't a good offer.. And by the way, do your homework and see what else is out there... You might find a deal even better than a new customer Directv deal and be able to get them to somehow compete with that...

Why not sign up the boyfriend first, get his account going, and then cancel yours. The you know you'll be ending up with all new equipment.. If anyone asks.. Just have your boyfriend tell everyone your breaking up, and you are moving out, and taking your stuff with you, and he needs to get his own system and account... Done deal.. Its not like Directv is going to come by your house and check and make sure your not living there anymore...

Also, in terms of ethics.. I look at this as I do when a business goes back for several quarters or even years sometimes, and readjusts all kinds of accounting data to realign their finances so that they are in a better situation today...

In a more general realm... I think Directv would be better off not offereing so much to new customers.. and simply use those savings to lower their rates a little, and focus on an ad campagin that would state, We don't do free for a month, and then jack up your bill like cable does.... Of cours, they would also need to make all hardware policies and pricing the same... No one would complain if they for example said, after being with Directv for 1 year, you are then eligiable for one new reciever for free every year, plus shipping and handelign... And if you want more, then its an addition 50 for basic dvr or HD receiver, and 99 for hd dvr.. (thats the only boxes they should sell too) And for any new customers, first 2 boxes are completely free, any kind of box, and then the pricing applies for each pone after 2... And make it the same for everyone. No, if this, then that stuff. Make it simple, and uniform. This would eliminate the different answers people get when dealing with customers. (oh, and no random discounts either for custeorms either. And push the aneversary gifts like crazy. Everyone get them every year)

Its funny, they go to so much work to try and limit how much csr can do so they can eliminate confusion, but they really haven't been successful at it. They really need to streamline it.

Of course, thats just the opinion of some how has seen countless retailers go out of business because they keep using new and exciting tactics that run a quick course, and then have to do it all over again to get customers to come back, rather than just being the best at what they do, and making customers happy, and therefore keeping their customers always coming back for more. Thats the key too.. Directv is at the point, where if they did things right, they could simply become a cash cow with a streamlined offering and flexibility to change with the future and make customers happy, without all the gimmicks they use today to try and lure new customers in..

[galaxieinstaller]

Being an installer one thing i can tell you is that you can go to your local directv retailer and sign up as a new customer for free all you pay is the programing for 2 years and you get one dvr hd or hddvr for free as for the change of the name thats on you

[Bardman]

Call the D* 800 number and when you get the voice prompt, say "cancel service". this will route your call to the customer retention department. When you get a CSR on the line, DO NOT threaten to cancel. Instead, explain nicely that you have been a customer for three years and that your commitment is up. Tell the CSR that you had previously called to inquire about upgrading to an HD-DVR, and that the prices you were quoted seemed awfully high. State that you are considering all your options to upgrade to HD (cable, Dish, FIOS, Uverse, etc., whatever is in your area). Ask the CSR to give you their best competitive offer to keep your business. I'll bet you get a decent deal and you won;t have to worry about switching accounts.

I am in a similar situation (3 DTivos and ready to upgrade to HD). I called the 800 number and politely discussed upgrading two of my DTivos to HDDVRs, he quoted me a "price" that was unacceptable and I told him so. I responded also with a quote I had generated via Dish Network's website while I was on the call, I told him that I could switch to Dish for all 4 of my TVs for less money than what he just proposed, HE said he needed to transfer me to another department (which I knew was retention) and the new CSR quickly thanked me for being a subscriber for the past 4 years and gave me HDDVR #1 free, with free shipping, free install, and 1 year HD service free. 2nd HDDVR was $199 (no shipping, etc)... After all is said and done, I'll be a the same monthly bill for the next year, and I've upgraded 2 boxes for only $199. (much less than my potential initial cost with Dish Network)

Know what you want, know what you want to pay (be reasonable) and they will work to keep you as a customer. (if they don't, thank them, hang up, and try another round of CSR roulette)

[jodyguercio]

The old saying "Kill them with kindness" comes to mind. As many have stated, call directv back, have all your facts, and lay out your terms. One of two things will happen, you'll get what you want or directv might lose a customer but gain a new one in your boyfriend. Personally, why not twist their own rules to suit your needs?

[BattleScott]

In my opinion, DirecTV is the party acting unethically by treating an established customer as a 'New Customer' (actually worse) by requiring the new 2 year committment for upgrading to HD service. If they are going to place all the same requirements of a "new customer" on existing cutomers, then there is absolutely nothing unethical about receiving the benefits of that requirement.

I agree that the best approach is to try and get what you want as an existing customer, but if they refuse there is no reason not to create a new account.

[lparsons21]

Amen to that!!

What you or anyone else owes Direct or any other company is in the contract. When you are a new customer, you get a bunch of goodies in return for you agreeing to subscribe to a certain level and pay your bill on time. That is it, nothing more, nothing less.

At the end of the agreed upon time, you have the choice of continuing in the original agreement for as long as both sides are agreeable. which is to the company's best interest. OR....

You can negotiate a new contract that is in your best interest. If one side is not willing to negotiate, then it isn't unethical to do what the OP suggested at all.

At the time that my 2 year contract is up, I will renegotiate the new contract that will include recovery of the money the protection they offered for free and reneged on, cost me as a starting point in negotiations. Then we'll talk about other things that are in my interest. At the end of the conversation, I'll either agree to the new terms or tell them I'll think about it.

But I won't be thinking about it. I will be making a shift to a different provider and then making one more call to them to cancel the service.

That is all I owe them, nothing more, nothing less.

And for those that want to fiddle with multiple calls for CSR roullette, well I'm glad you like wasting time and energy.

So far, I'm happy with Direct and will remain that way as long as the deal remains a good business decision for me. When it isn't, then I'm gone.

[Ken S]

Sounds like a very pragmatic way of dealing with a corporation. Hopefully the choices for viewing content will expand via the internet or cable/fiber providers causing greater competition for customers. Don't forget to negotiate a rate/term lock as well. Of course, if you leave you won't receive the loyalty gifts like three PPV coupons (SD) or a premium channel at no additional charge.


Amen to that!!

What you or anyone else owes Direct or any other company is in the contract. When you are a new customer, you get a bunch of goodies in return for you agreeing to subscribe to a certain level and pay your bill on time. That is it, nothing more, nothing less.

At the end of the agreed upon time, you have the choice of continuing in the original agreement for as long as both sides are agreeable. which is to the company's best interest. OR....

You can negotiate a new contract that is in your best interest. If one side is not willing to negotiate, then it isn't unethical to do what the OP suggested at all.

At the time that my 2 year contract is up, I will renegotiate the new contract that will include recovery of the money the protection they offered for free and reneged on, cost me as a starting point in negotiations. Then we'll talk about other things that are in my interest. At the end of the conversation, I'll either agree to the new terms or tell them I'll think about it.

But I won't be thinking about it. I will be making a shift to a different provider and then making one more call to them to cancel the service.

That is all I owe them, nothing more, nothing less.

And for those that want to fiddle with multiple calls for CSR roullette, well I'm glad you like wasting time and energy.

So far, I'm happy with Direct and will remain that way as long as the deal remains a good business decision for me. When it isn't, then I'm gone.

[lparsons21]

Sounds like a very pragmatic way of dealing with a corporation. Hopefully the choices for viewing content will expand via the internet or cable/fiber providers causing greater competition for customers. Don't forget to negotiate a rate/term lock as well. Of course, if you leave you won't receive the loyalty gifts like three PPV coupons (SD) or a premium channel at no additional charge.

I think it is. As for the 'loyalty' perks, well if I watched PPV or really cared about the so-called 'premium' channels, I might consider them. But since neither are things I care about, they have no value to me.

And at the moment, both satellite companies are providing HD service on nearly all the same channels that I watch, so switching just isn't an issue. My local cable service isn't a choice as they have the same 5 channels in HD that they did a few years ago with 'coming soon' for a few more, so they aren't competition.