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I'm tired of DIRECTV's Creative Ways of Digging into my pocket

Discussion in 'DIRECTV General Discussion' started by Spike, Aug 11, 2013.

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  1. Aug 11, 2013 #21 of 164
    harsh

    harsh Beware the Attack Basset

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    HD costs DIRECTV a lot more money to provide from a bandwidth standpoint than SD so they can't really throw it in. DIRECTV has two slots (99W, 103W) of relatively new satellites (four or five) dominated by HD content versus one and few (11 transponders at 119W) for SD.

    They presumably pay extra over and above the SD rights to get HD rights to programming.

    Why should those who get along with SD subsidize those who must have HD?
     
  2. Aug 11, 2013 #22 of 164
    damondlt

    damondlt New Member

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    Again Harsh Talk to us when Directv is showing NET Losses.

    That means when the company is costing more to run then whats coming in. Not I made 5 bil last year and now I'm only making 4.


    Sorry I had to go from $350,000 a year to $200,000 a year. Beause I have to Lower my Profit, or I'll be out of work.
    I didn't lose $150,000 since I never had it in the first place.
     
  3. Aug 11, 2013 #23 of 164
    harsh

    harsh Beware the Attack Basset

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    Nor do they get away with paying only $888 for a four-room Genie system installed. The $888 number comes from their Q2 2013 SEC filing as the average cost of a new installation.
    How many cycles do you suppose the average box survives? I bet it isn't anywhere near "many" and instead is probably less than two cycles.
     
  4. Aug 11, 2013 #24 of 164
    damondlt

    damondlt New Member

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    OH since we're talking averages,

    The Average Directv subscriber spends $93 per month on services.
    That's over $2200 for the terms of the contract.
     
  5. Aug 11, 2013 #25 of 164
    jimmie57

    jimmie57 Hall Of Fame

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    DirecTV lost 50,000 plus subscribers in the US last year in this same quarter that it lost over 80,000 subscribers. The subscriber base in the US is falling. Lots of people giving up on pay TV and going back to their OTA and subscriptions like Netflix, etc.
    In the quarterly report their profit margin is less than 10%. That is very low compared to other companies.

    Having said that my bill is a lot more than I want to pay. I routinely call and ask what they can do to help lower my bill and usually get it reduced at least $25 per month to keep me under $125. If not I would be dropping some of the extras I can live without.
    I have been with them since 1996. My bill was a fraction of what it is now.
    Back then I had 2 SD receivers and a basic package, no DVR. Now I have a package just under the premier, HD service, 2 HD DVRs, HBO, Showtime, Starz and Encore.
    When I came to DTV I had cut the cord with TWC because they raised my rate 3 times in a 12 month period and at that time I had not had a raise in 3 years.
    We have Comcast Cable internet service and it costs us over $73 per month just for internet. If you call them and ask what they can do for you they usually offer to lower the speed of your service for a slightly smaller price per month.
     
  6. Aug 11, 2013 #26 of 164
    damondlt

    damondlt New Member

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    And they are installing 4 room Genies daily to new customers , So your point is Moot!

    Apparently its not hurting them cause they know in a year they will have made it back and then some!
     
  7. Aug 11, 2013 #27 of 164
    harsh

    harsh Beware the Attack Basset

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    DIRECTV is in business to make money for their shareholders -- exclusively.
     
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  8. Aug 11, 2013 #28 of 164
    damondlt

    damondlt New Member

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    You are absolutely Right!
    100% spot on.

    See we do agree! :righton:
     
  9. Aug 11, 2013 #29 of 164
    harsh

    harsh Beware the Attack Basset

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    The average DIRECTV subscriber pays $98.73/month
    The new customer pays a whole lot less than the average customer. Discounts of over 50% in year one aren't extraordinary. Year two is a big shock but there are still some discounts.
     
  10. Aug 11, 2013 #30 of 164
    damondlt

    damondlt New Member

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    Because customer are tired of seeing big increases in fee's but yet don't see anything but more profit.

    On one hand we got these providers, claiming oh "we have to raise your rates because of inflation",
    but yet they at the same time they are saying
    "hey we need $10 but lets say $20 so we can make more money" That's BS!
     
  11. Aug 11, 2013 #31 of 164
    jimmie57

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    My friend just got a bundle thru AT & T with internet and DirecTV service. She switched from Dish.
    She has an HR44 and 1 client. She has the program package just under the premier. She got all the movie channels free for 3 months. Her total bill for the first year is under $100 per month for TV and internet.
     
  12. Aug 11, 2013 #32 of 164
    damondlt

    damondlt New Member

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    While I would agree with you on this in Directv favor, except New subscribers are less then 10 % of Directvs total customers.
    Not very many getting these huge discounts.
     
  13. Aug 11, 2013 #33 of 164
    harsh

    harsh Beware the Attack Basset

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    Rest assured that they're not giving up. They've likely shifted or quit so they can come back later to get new subscriber deals. Telco subscriptions are up in the 14-16% range.

    OTA is not a long-term option for a pretty large majority. IPTV services are pretty thin and out of the picture for many who don't have fat pipes to the Internet. We hear accounts often of those that have experimented with cutting the cord and how they're not particularly satisfied.

    Q2 is a pretty predictable quarter for lower numbers so it should not be taken as a sign of paradigm shift.
     
  14. Aug 11, 2013 #34 of 164
    n3vino

    n3vino Godfather

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    I got Uverse internet 12MPS and D* with one HDVR, two H25s, HD, whole home, and protection plan, with all the other incentives that come with it, at the same time, but not as a bundle. My bill was under $100. the first year. A year and a half later, I added a Genie so that gave me one extra receiver and my bill nearly doubled for both services together after the promotion period ended and price increases from D*. Your friends will also go sky High the 2nd year, depending on what speed internet she has.
     
  15. Aug 11, 2013 #35 of 164
    longrider

    longrider Well-Known Member DBSTalk Club

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    I am surprised how many people are saying things like "I pay $100 a month for 24 moths, that more than covers the $800 it cost to sign me up" The great majority of that $100 goes to paying for the ongoing costs such as what they have to pay providers for programming, operating costs of uplink centers, etc, etc.
    While that is true at the most basic level, business in general (not just DirecTV) has made way too narrow a focus on that and has lost sight of the bigger picture that to be successful you need to provide a product people want, at an acceptable quality level, and at a price people are willing to pay. Granted in this discussion DirecTV is the middleman and it is the content providers that are missing the bigger picture but i see this in way too many businesses.
     
  16. Aug 11, 2013 #36 of 164
    acostapimps

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    At least for one thing they're giving me credits for HD fee,DVR fee and package discounts for the time being, no way would I want it at the $100 mark or I'll change to lesser priced package, But now im paying in the mid $70's price.


    Sent from my iPad using DBSTalk mobile app
     
  17. Aug 11, 2013 #37 of 164
    damondlt

    damondlt New Member

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    I am surprised that so many people think or imply that Directv is out this money!
    Clearly they are making a truck load of money.!

    Directv makes their prices and sets their prices to make money, Not break even or take a loss. Directv wouldn't make their minimum commitment agreement $29.99 if that meant they would be taking a loss.

    They came up with this number for a reason!

    Choice Extra wouldn't cost you $70.99 if it cost Directv $71 to provide it to each customer.
     
  18. Aug 11, 2013 #38 of 164
    Milkman

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    The argument was a little asymmetrical, but the BS leasing charge really gets under my skin. If I pay $200.00 for a receiver I should NOT have to pay the stupid $6.00 per month charge. If I pay nothing for the receiver, I totally get it - I just don't like the idea of being double charged.

    What TWC/BHN does with the modem charge is exactly how other providers should handle the per month charge. Pay per month forever OR buy your own and get no charge. To get both is ridiculous.
     
  19. Aug 11, 2013 #39 of 164
    longrider

    longrider Well-Known Member DBSTalk Club

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    I think we are saying the same thing just from different perspectives. DirecTV absolutely is profitable but that $100 a month is not in any way all profit. These numbers are straight from DirecTVs financial statement: 60% of gross income goes to COGS, what they pay for the programming plus I would guess a lot of the cost of running uplink centers and installation goes there. 25% goes to the cost of running the business. The is leaves 15% for profit and taxes take a third of that so only 10% is actually profit. In other words you could take out all profit and your $100 bill would only go down to $85
     
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  20. Aug 11, 2013 #40 of 164
    Gloria_Chavez

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    OTA won't appeal to a majority. But it is appealing to far more each year.

    -------
    August 6, 2013, 8:14 p.m. ET

    CBS-Time Warner Cable Dispute Shows an Industry Unaware of Reality

    http://online.wsj.com/article/SB10001424127887323420604578652271175622986.html

    It was a mere coincidence that news of the Post sale broke right after Mr. Britt had sent his latest missive to Mr. Moonves in a months-long squabble over money. But the timing highlighted the essence of what another cable executive, Jim Dolan of Cablevision Systems Corp., CVC +0.67% was quoted saying Monday: The pay-TV industry is in a bubble. And it remains perilously out of touch.
    ...............

    But as Messrs. Dolan and Ergen have acknowledged, these arrangements aren't sustainable. Younger people watch what they want online, making the idea of cable TV less appealing. The percentage of people age 13 to 33 subscribing to pay TV fell to 76% this June from 85% in June 2010, a new study by research firm GfK found.

    "Cord cutting used to be an urban myth. It isn't any more," said cable analyst Craig Moffett in a report Tuesday.
    -------

    How profitable is DTV? Anyone who crunches numbers will tell you that an operating margin of 20% or more is exceptional.

    From its 2Q13 earnings report, DTV reported an EBIT margin of 20.9%. Its EBITDA margin is 27.8%. (FOR DTV US OPERATIONS)

    Up until one decade ago, The Washington Post once had similar margins, with an EBIT margin of 25%, sustained, year after year. As Buffet said, owning a newspaper was having a license to print money.

    Today, its operating margin is 2%.
     
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