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No More 2 Year Contracts

Discussion in 'DIRECTV General Discussion' started by tds4182, Mar 5, 2013.

  1. Mar 5, 2013 #1 of 82
    tds4182

    tds4182 Legend

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    There is quite a bit of buzz going around on the internet and in the business section of newspapers right now that cell phone companies are seriously considering abandoning 2 year contracts in favor of higher prices for the phones initially and then month to month contracts.

    Is there any chance of this movement coming to the Satellite market also? It would certainly mean higher prices for equipment but more freedom to change providers and/or equipment for consumers.

    Anybody's thoughts/inside baseball knowledge about this would be appreciated.
     
  2. Mar 5, 2013 #2 of 82
    tonyd79

    tonyd79 Hall Of Fame

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    Great. This will cost is all more money.
     
  3. Mar 5, 2013 #3 of 82
    Cyber36

    Cyber36 Legend

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    I'll believe it when I see it........
     
  4. Mar 5, 2013 #4 of 82
    Mike Greer

    Mike Greer Hall Of Fame

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    Not likely - DirecTV makes a killing on the receivers. If someone pays $200 for an HR24 and keeps it forever they make money. If someone pays $200 for an HR24 and cancels before their 2 year commitment DirecTV makes money and then gets to charge the next poor sap $200 for the same receiver. Bottom line - they make money.

    If DirecTV sold you an HR24 for $300-$400 or even $500 and then allowed you to leave when you feel like it they are risking breaking even. They are not in the business of breaking even!
     
  5. Mar 5, 2013 #5 of 82
    fleckrj

    fleckrj Icon

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    I would prefer to keep the 2 year committment and have the lower up-front costs. The cost of switching providers would be just as high because you would have to factor in the up-front cost for the equipment.

    If you say you could just re-use your old equipment, then how is that different from putting your account on hold and keeping the equipment, then reactivate that account and put the other account on hold?

    With my current telephone account, even though I have a 2 year committment, I can get a new phone at a significantly reduced price every 18 months as long as I sign a new 2 year committment. I have only changed cell phone providers twice going back to the days of analogue cell phones.
     
  6. Mar 5, 2013 #6 of 82
    tworivers1

    tworivers1 Cool Member

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    Directv makes their money on your monthly bill not the cost of the receiver. I've been with DTV for 15 yrs I think my first bill was around $50 for the same service I have now. Ive been paying over $90 for the last 7-8 years. You still pay for the receiver 10 fold over the life of the receiver. Its a never ending cycle.
     
  7. Mar 5, 2013 #7 of 82
    Satelliteracer

    Satelliteracer Hall Of Fame

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    D* allows customers today to buy their receivers with no commitment. That's been around for a number of years. The reason for the 2 year commitment is to recoup the investment it takes to bring a new customer on board, which is a large amount of money. When you consider most new customers come in on 3 or more receivers, plus the installation, etc, etc...that takes a long time to recoup those expenses and thus the commitment requirement.
     
  8. Mar 5, 2013 #8 of 82
    CCarncross

    CCarncross Hall Of Fame

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    If people cant be bothered to carry through with something for 2 years let them pay the higher rates, not everyone else who has no problem with 2 year commitments.
     
  9. Mar 5, 2013 #9 of 82
    cmoss5

    cmoss5 1960'S NOSTALGIA

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    Just got my Directv bill....went up $7.00...package went up....dvr went up...HBO,Starz pkg went up
     
  10. Jacob Braun

    Jacob Braun King of Awesome

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    For tv? Not a chance. Especially DirecTV or Dish. It costs a LOT of money to install a new satellite dish, receivers, and wiring, plus support a new customer as they get used to a system. It takes quite a while to make money off of a customer, hence the two year agreement. And as SR said DirecTV does allow customers to pay more and not have a commitment, as does Dish.

    This works very well with mobile providers in Europe where they'll do a discounted plan for doing no subsidized phone, or a discounted phone and a higher cost plan, with more discount on the up front phone fees the more you pay.
    For cell phones I would gladly pay $40 or $50 less a month if I had to buy my iPhone at full price, and I'm sure many people feel the same way.
     
  11. carl6

    carl6 Moderator Staff Member DBSTalk Club

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    As noted, the option is already there. However, you would probably be better off paying the ETF if you want to leave early than paying the full up-front cost for the equipment.
     
  12. damondlt

    damondlt New Member

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    Where can you Buy them and How much Does HR24 cost?

    You can But a Hopper for $350, so if Directv Charges more then that for an HR they are smoking crack!
     
  13. raott

    raott Hall Of Fame

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    Yet the commitment is also restarted every time a "new" (and I use that term very loosely) piece of equipment is added by an existing customer; long after that investment has been recouped.
     
  14. Satelliteracer

    Satelliteracer Hall Of Fame

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    You can buy receivers directly from D*, been that way for years.
     
  15. damondlt

    damondlt New Member

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    Yep, I know all about Buying receivers from Directv, and you still didn't mention how much?
     
  16. Satelliteracer

    Satelliteracer Hall Of Fame

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    Yes, but most customers don't upgrade to new equipment in those first two years.
     
  17. Satelliteracer

    Satelliteracer Hall Of Fame

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    I thought you asked "Where can you buy them"


    I don't know the prices, I'll have to check.
     
  18. harsh

    harsh Beware the Attack Basset

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    No chance whatsoever.

    The fanciest phones are cost a whole lot less than half the cost of the average satellite setup and the cost of service is a pittance compared to television programming costs. Wireless phone install costs shouldn't be very high. DIRECTV figures that the cost to bring a new subscriber on board (Q4 2012 SAC) is $848.

    DIRECTV currently offers Genie takers over $100 a month in signing discounts for the first 12 months. Selling a package that is going to cost upwards of $150 a month is going to be tough.
     
  19. harsh

    harsh Beware the Attack Basset

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    Nonetheless, you can't open an account with purchased receivers nor without a 24 month commitment.
     
  20. raott

    raott Hall Of Fame

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    I was addressing the stated rationale behind the two year commitment.

    Is there a different rationale for the customer incurring two-year equipment when a customer "buys" what often ends up being a used piece of equipment, which has likely already been "sold" at least once to other customers?
     

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