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2 year prepay contract ended with Dish...

Discussion in 'General DISH™ Discussion' started by sliderbob, Nov 4, 2011.

  1. P Smith

    P Smith Mr. FixAnything

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    Funny, you should count air what we suck each second and charge for it too ... Your $$$ numbers are have no meaning for the type of broadcasting.
    Better if you start from real things, as antenna, cable, labor, boxes ...
     
  2. Inkosaurus

    Inkosaurus Icon

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    Why wouldnt it count, when someone gets something for free someone else pays for it.
    Try replying with a proper rebuttal next time bud.
     
  3. P Smith

    P Smith Mr. FixAnything

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    I mean those numbers are fictional - the corp have no expenses to procure it. While boxes/dishes/cable/switch/labor of installation are the real money.
    If you like to convince us, customers, start counting the $900 from real things.
     
  4. jsk

    jsk Icon

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    They are probably adding in the marketing costs to attract new customers in the $900 figure as well. However, those costs don't come into play regarding the OP because they already paid the marketing involved to attract the OP.
     
  5. BobaBird

    BobaBird EKB Editor

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    From the 2Q11 10-Q:

    SAC. Subscriber acquisition cost measures are commonly used by those evaluating companies in the pay-TV industry. We are not aware of any uniform standards for calculating the "average subscriber acquisition costs per new subscriber activation," or SAC, and we believe presentations of SAC may not be calculated consistently by different companies in the same or similar businesses. Our SAC is calculated as "Subscriber acquisition costs," plus the value of equipment capitalized under our lease program for new subscribers, divided by gross new subscriber additions. We include all the costs of acquiring subscribers (e.g., subsidized and capitalized equipment) as our management believes it is a more comprehensive measure of how much we are spending to acquire subscribers. We also include all new DISH Network subscribers in our calculation, including DISH Network subscribers added with little or no subscriber acquisition costs.

    Subscriber acquisition costs. "Subscriber acquisition costs" totaled $343 million for the three months ended June 30, 2011, a decrease of $63 million or 15.4% compared to the same period in 2010. This decrease was primarily attributable to a decline in gross new subscriber additions partially offset by higher SAC discussed below.

    SAC. SAC was $795 during the three months ended June 30, 2011 compared to $743 during the same period in 2010, an increase of $52 or 7.0%. This increase was primarily attributable to an increase in hardware costs per activation. The increase in hardware costs per activation was driven by deployment of more advanced set-top-boxes, such as HD receivers and HD DVRs and by a build-up of partially subsidized inventory to third party retailers and installers. The build-up of inventory was associated with lower-than-historical subscriber activation rates.
     
  6. MattScahum

    MattScahum Legend

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    I'm not taking sides in this argument, but I will say that Inkosaurus is correct in adding these costs together. Wheter the customer wants to believe it or not, these things do come into play when companies like Dish/Direct/Fios/etc factor in the cost of acquiring a new customer. Also, I would assume that they also factor in the cost of the equipment given out so that IF the customer fails to complete the agreement and doesn't return the equipment they can speak to costs.
    To the OP: I haven't worked for Dish in a few years but I do remember the flex24 customers had to stay longer than 2 years to start qualifying for free or reduced cost equipment. Also, if you decide to give Directv a try your credit check results will determine what you can get. If you come back approved, you can get 1 HD DVR free and either 3 free HD receiver upgrades, $49 HD receiver upgrades up to 3, or no discounts on HD receivers paying $99 each. If there is a fee, you will get 2 standard receivers for free and each additional standard reciever is $69. You would pay $99 for HD receiver/DVR receiver or $199 for HD DVR. Your start up fee is $200 if you do standard receivers or $300 if you do advanced receivers.
     
  7. Inkosaurus

    Inkosaurus Icon

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    P. Smith, i understand what you are saying but it is a investment none the less.
    That is money Dish could be making but they decided to just give the programming for free in hopes that the customer would like some of it and choose to keep it rather then to just stay with Dish the entire 2 years on basic programming.
    Companies dont give stuff to new customers to be nice, its to get them used to a higher level of programming to hopefully get them used to it and keeping it.

    Also about the whole "5$ this and 5$ that" talk earlier you do realize the only 5$ fees left now are penalty fees right? Like lets say a customer added HBO for one night to watch a boxing match and removed it that same night, well Dish isnt going to just let them watch that fight for free...

    Anywho end of the day there is a cost of acquisition and its fairly high too, and with the way subscription money is used new customers dont even out until well after there 2 year contract and getting any freebies at the end of that contract only increases the amount of time for a customer to pay off there investment.
     
  8. P Smith

    P Smith Mr. FixAnything

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    Those signal "free" stuff what you did try to monetize as SAC is really free. For the corp or for the subscriber(s). As I told already - you (or the corp) cannot show it as their cost.
    They could juggling by words like BobaBird quoted. Without real calculation. Because none of it.
     
  9. Mr-Rick

    Mr-Rick Legend

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    Cable won't hook just anyone up. COMCAST does a credit check and other cable companies will ask for a deposit if the customer is credit challenged.
     
  10. Mr-Rick

    Mr-Rick Legend

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    SAC of $795 is an average. It can EASILY go higher. Keep in mind there are many people who purchase a dish and receivers and activate. SAC for those accounts are LOW.
     
  11. P Smith

    P Smith Mr. FixAnything

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    The SAC value taken from a... nose - no need to inflate overinflated numbers. It so easy - no facts, no calculation, just blah, blah, blah ....
     
  12. Inkosaurus

    Inkosaurus Icon

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    I love how you dont post any links, numbers or anything at all to back up your posts.
    Yet you ask us to do so, and when we do you just go on to say its untrue.

    Just saying "No no thats wrong every company in the world is greedy" wont change the fact that on some level we are correct.
     
  13. P Smith

    P Smith Mr. FixAnything

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    You don't need to defend the corps - they are will mockup the numbers as before, and we all knows that.
    You brought the ridiculous $900, sorry just parroting those who made those. And I did ask for calculation, but got another piece of propaganda. My numbers you can find above.
     
  14. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    I'm not seeing any numbers other than the $900 figure or the ones from a Dish break-down.

    I haven't seen anyone else provide proof or links to support a counter-claim that it doesn't cost Dish this kind of money to acquire a new subscriber.

    IF you can prove a lower cost of acquisition for a new Dish customer, please do so. Otherwise it looks like you are just arguing to be arguing without any evidence to back up your counter-claim.

    I grant that Dish might be inflating a $900 cost... companies do that... but we know there is some cost to Dish... so if you think you have a better number, please show evidence/data of what you think that cost is and how you calculate it.
     
  15. P Smith

    P Smith Mr. FixAnything

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    see post#14, 21
     
  16. CCarncross

    CCarncross Hall Of Fame

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    While the actual number may be in question, there is absolutely no reason to doubt that its not in that range, unless you can find and post definitive proof to the contrary...
     
  17. Inkosaurus

    Inkosaurus Icon

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    These posts dont even come close to backing up your claims.
    You havent even attempted to post any links, add any values up or even make post without circular logic to prove your point.
    Your just walking in circles and its clear your only posting in this thread to argue and play devils advocate in a discussion you have no experience in.
     
  18. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    And I think all of us are still waiting for some credible theories to calculate a lower number.

    Even Inkosaurus has posted he doesn't know if the number is 100% true... but I've seen more data in this thread to support that number than I've seen to support anything else.

    The "see post #14 and 21" reference by P Smith yields no proposed lower number nor any basis for calculating a lower number.. so I'm not sure what he is getting at.
     
  19. phrelin

    phrelin Hall Of Fame DBSTalk Club

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    Northern...
    Here's how I view the whole Subscriber Acquisition Cost (SAC) thing:

    A. Buy a satellite setup, cable, a DVR, etc., on eBay. Hire a local electrician or handyman or even a Dish installer to install it. Dish will activate everything. No cost to Dish. You pay the regular monthly charges in order to avoid any contract obligation.

    OR

    B. Have Dish provide you with everything installed and the only charge will be a reduced monthly charge for a year plus 3 months of HBO, Cinemax and Showtime.

    To find out the SAC for you, subtract B from A.

    One thing is for certain, the SAC won't be zero.
     
  20. Inkosaurus

    Inkosaurus Icon

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    Makes sense but how do you factor in cost of ads and what not?
    I mean SAC isnt just the cost to install a customer, im fairly certain SAC takes into account a percentage of the cost of ad space used to let customers know there is such a thing as Dish network right?
     

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