What specifically raises prices?

[Link]

What specifically is the reason for these price increases on both Dish and Directv? I mean we have seen prices go up in the past by $1 or so, but this year $3 seems a bit too much considering they have not been giving much of anything new.

Are the local channels the main thing driving these prices up?? It is hard to believe that in 2003, Total Choice Plus was $39.99 with local channels and Directv's promos were based on the $39.99 price. Now in 2005, TC Plus and locals are up $6 in 2 years to $45.99. In the two years time, they really haven't added many new things except GAC and TV One, but have also taken channels away like TRIO and CNN International.

E* has done the same raising prices by $3 this year but hasn't really added anything to the packages to justify this except SITV--a channel that is not in viewer demand. Customers are still waiting on channels to be added like Oxygen and TV One and for other current popular channels like Hallmark and Fox News to be moved to the lower cost packages.

One thing I will say for cable, when they raised my bill, they did add some new stations to the lineup or some additional services.

[Stewart Vernon]

I'm not defending price increases per se, since I don't like paying more either...

but I'm consistently amazed at how many people I know personally who want raises at work, but want prices on everything to remain the same or go down.

In Dish's case... maybe we are paying for programming that was added last year that we got for "free" then? Or maybe a bunch of folks got raises that work there... or maybe Dish is paying more for some stations now than last year at this time.

What amazes me also... people get in an uproar when the cable/Dish bill goes up a couple of bucks... but when gasoline goes up $1 at the pump no one threatens to switch to electric cars!

I've always felt gas stations that raise prices on gasoline they already have in the tank was worse than when cable ups prices $1 after a year or so when they conceivably could have had some increased cost of business.

[Ray_Clum]

What amazes me also... people get in an uproar when the cable/Dish bill goes up a couple of bucks... but when gasoline goes up $1 at the pump no one threatens to switch to electric cars!

Actually, I dumped my 15 mpg city/18 mpg highway Ford Ranger 4x4 for a 23 mpg city / 29 mpg highway Ford Escape because of that. If they would have had the hybrid in Indianapolis when I looked, I would have probably gone for it...

[Jacob S]

Is the Ford Escape that has that much better gas mileage have a comparable engine and also have 4x4? I heard that Ford was coming out with an SUV that is a gas/electric hybrid that is 4x4 with about 28 MPG.

[Ray_Clum]

Nope, I also downsized from the 4l V6 4x4 (w/ auto tranny) to the 2.3l I4 FWD (w/ manual tranny) - I was surprised how much acceleration and jump I could get out of the 2.3l... The Escape Hybrid gets in the upper 20's to low 30's, but don't know if available 4x4.

[Capmeister]

What specifically is the reason for these price increases on both Dish and Directv? I mean we have seen prices go up in the past by $1 or so, but this year $3 seems a bit too much considering they have not been giving much of anything new.

Aren't both of them working on putting new birds into space for more bandwidth? I'd think that would be pretty expensive.

[kenglish]

Programming costs, especially for sports, are usually the given reason.

"Stations" (locals) usually don't get paid for carriage.

[Greg Bimson]

What specifically is the reason for these price increases on both Dish and Directv? I mean we have seen prices go up in the past by $1 or so, but this year $3 seems a bit too much considering they have not been giving much of anything new.Very simple.

The point was made by HDMe. You can go to your boss and request a raise. Programmers feel the same way. So, when Disney/ABC wants to raise the carriage rate for their channels by 8 percent yearly to their distributors, both cable and satellite, and removal of the programming threatens the well-being of the cable or satellite company, then the cable or satellite distributor accepts the increase from their supplier, and in turn, increases their rates to their customers, i.e., their subscribers.

[durl]

I wish providers had more ammunition to protect us from networks that begin charging WAY too much for their content. Perhaps forcing a network into an "add-on" package when the cost per subscriber exceeds a certain point. So when Disney begins to ask way too much for ESPN, it's thrown in to the Sports Pack. That would increase prices for Sports Pack customers, but it would lower them for people that don't want ESPN, or it might force a network to lower their asking price since their subscriber base would be diminished and hurt ad revenues. I don't know if that would work, but either way I'm sure networks would never go for it.

[Mark Holtz]

One slight problem. ESPN is owned by ABC, which, in turn, is owed by Disney (whom I call Darth Maus). Guess which other channel is owned by Darth Maus? The Disney channel. So, basically, Darth Maus has a double-barreled shotgun pointed at the multi-channel providers, and the providers are stuck doing a "Yes, Master."

[lee120]

an directvs new nds pvr for hd and sd

[Stewart Vernon]

I wish providers had more ammunition to protect us from networks that begin charging WAY too much for their content. Perhaps forcing a network into an "add-on" package when the cost per subscriber exceeds a certain point. So when Disney begins to ask way too much for ESPN, it's thrown in to the Sports Pack. That would increase prices for Sports Pack customers, but it would lower them for people that don't want ESPN, or it might force a network to lower their asking price since their subscriber base would be diminished and hurt ad revenues. I don't know if that would work, but either way I'm sure networks would never go for it.

I know I'm paying for a lot of channels I don't watch too... but as has been beat to death in a lot of forums over the years... a la carte doesn't help your pocketbook like you think it might. Per channel cost goes up everywhere when you start pulling things out like that.

For instance, there are folks who literally want nothing from Satellite than sports... so they'd buy the sports pack only, and they'd no longer be helping subsidize the cost of the other channels, which in turn would need to increase in cost to make money.

If ratings are any indicator, sometimes yes sometimes no, not many channels could survive on their-own... and only a few more could survive in packages of just a few. In the golden oldie days of a few channels (major networks) only... there wasn't much choice.

The more choice, the harder it is to keep an audience captive. Even the channels I like, I'm not watching any particular channel even half the time I have it. I like Battlestar Galactica on Sci-Fi right now, and that's it... Monk & Dead Zone on USA, that's it... I want those two channels, but I barely watch them in reality. Similar habits on network TV and ESPN...

But for the most part right now, it's worth me paying to have them for when I do want to watch them... and I'm ok paying a package fee to help other people have the channels they want since they are doing the same for me.

I do have HDTV, and I'm ok with the HD package because it would be unfair to have everyone pay for that package if they can't receive the programming... but if Dish ever did a mass-swap and gave everyone HD STBs, then I'd be ok with a merge of HDTV into a normal package at that point since everyone could get the same programming. You might argue that HD customers get more enjoyment... but that's true of a guy with a 40" TV vs a 25" and they don't charge the 25" guy less because his TV is smaller...

Ranted more than I meant to here... sorry!

[wkomorow]

There are a number of reasons including new channels. Obviously, sports programming contributes considerably to the added costs. In addition, there have been legal settlements (TV Guide/Gemstar). Dish has invested in new startup networks (SiTV). There are added costs for health care and liability insurance. In a number of states, particularly in the Northeast, minimum wages (and therefore all wages) have gone up. Dish has given away a lot of equipment to new subscribers and subsidized equipment for long time subscribers. All of this contributes to increased operating costs.

[FTA Michael]

Prices are set by the marketplace. Each company sets each price to maximize profits. It's really that simple.

From a PR perspective, when a company must publicly raise prices, it rarely says it's doing it just to improve profits for shareholders. It points to some underlying cost increase, mumbles something about fighting for consumer value, then goes quiet.

If Dish (for example) could make more money by raising or lowering rates, it would. Dish has predicted how many customers will subscribe at each price point, and has set its fees accordingly.