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View Full Version : Charlie Financial "Chat"


10-24-01, 06:58 AM
Changes in dealer compensation on the way to combat churn. He says the majority of churn comes from few dealers (sort of impies that the biggest problem is with large dealers). He even stated the 2% of the dealers produce 20% of the churn, then backed away from that statement a bit.

I Like 9 goes away after January. He seems to imply that they will become a bit less aggressive on and subsidising new subscribers. Message: get in now if you want a strong subsidy on equipment purchases. I suspect that if Dish lowers it's subsidies that DTV will also.

Everyone in the Pay TV business will have to raise prices on an annual basis in the future because of contractual obligations and price increases from programmers.

Another new call center in q1 or q2 next year.

Goal... Reach 1,000,000 PVRS before any other company and achieve during 2nd half next year. (I hope they get one that works).

721 WILL roll out this year. Software is holding it up so far. (gee)

May have to remove a few cities when must carry arrives. Will depend on number of subs vs. number of must carry required channels. He feels overall must carry will be positive for Dish, but still doesn't want it.

Not one penny in business plan for interactive tv for this year. Minimal amount for next year. The biggest profits for interactivity in Britian (where ITV is most successful) is gambling over the television, which is illegal here.

Direct sales amounted to around 10% range. Retailers 90%. No plans to expand direct sales basis. He likes the job that retailers are doing in customer service and feels comfortable with current situation.

Number of set top boxes per home is now about 1.5-1.6 heading to 2.

Has plans to provide DSL in the future, but no details.

Judge in the federal injunction on the old Miami local program access case has "passed away" and the case is awaiting the appointment of a new judge. Developments have been positive. (I don't know if he was speaking of the "passing away" of the judge).

Charlie "likes where we are" now better than last year, even with the weak economy.

Rking

10-24-01, 12:11 PM
Great recap!

I laughed hard on the call when Charlie said "we are the leaders of PVR technology" I guess he didn't notice that one of his employees slipped him a Tivo instead of a 501. :D

Scott

10-24-01, 06:07 PM
Charlie is actually right. He thinks PVR means "Poor Video Recording". :D

10-27-01, 10:44 AM
"May have to remove a few cities when must carry arrives. Will depend on number of subs vs. numberof must carry required channels. He feels overall must carry will be positive for Dish, but still doesn't want it."

I think Philadelphia LIL is likely to be a potential candidate. Thanks to Comcast withholding Comcast SportsNet, I dont see as many dishes (especially Dish 500s) up around this area. The dishes that do go up seem to be DirecTV. DirecTV did launch Philly locals before Dish did, even though only by couple of months and has the sports packages.

Regarding mustcarry, I know they are stations that did request carriage and anticipate to be on, including WHYY 12, WPHL, WYBE, WGTW, WTVE, WWAC, WPSG, WFMZ all from the Philadelphia market. Now thats more than twice the amount of locals Dish offers for Philly.

Also, Dish hasnt added anything to the philly package since it was introduced even though we are missing a sports network (we should get a channel back like WPSG 57) and are DMA #4, and are willing to make life easy for Comcast the dominant cable provider throughout New Jersey through Maryland by not picking up Baltimore locals. Comcast owns majority of cable systems in Philadelphia and Baltimore, Washington DC market areas. Also major presence in Detroit area. The Philly locals were launched on Dish after they were on DirecTV, and Dish hastily added them with Nashville locals, Seattle and Detroit all at the same time. Dish instead decides to carry Comcast's Style instead of carrying Baltimore locals (a market that does have a RSN up, and has few mustcarries, and Dish has agreements with all the station group owners like Hearst, CBS, EW-Scripps, Sinclair)

Here's Bryan's mustcarry list: www.stratuswave.net/~brya...ations.txt (http://www.stratuswave.net/~bryan27/stations.txt)

Its unlikely San Francisco or LA will be dropped, since Dish already agreed to carry KNTV 11 for 2002. The other markets that have lot of stations like Houston, Dallas, Orlando that have lot of stations have more spanish channels that are owned & operated by Univision and Telemundo. Philly only has a PAX O&O and a HSN-Telefutura (Univision O&O). But no main TBN, Univision, Telemundo O&O. When I called WHSP, and WPPX they didnt indicate their local feed would be on Dish.

I'd be surprised if all the PAX O&O request mustcarry along with Univision & Telemundo. Even though legally they can.