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Rate increases coming, could be worse

Discussion in 'DIRECTV General Discussion' started by ChicagoBlue, Sep 11, 2012.

  1. mreposter

    mreposter Hall Of Fame

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    Directv's average customer bill is in the low $90s (I think $92 was mentioned in the last quarterly report.) And with average annual March price increases of around $4-5 dollars, they'll hit that magic $100 average in about two years.

    However, Directv plays at the higher-end of the subscription TV market, so most dish and cable subscribers are spending less per month. The complicating factor is that many cable subs bundle, so their monthly bills include internet and phone, pushing their total monthly bills into the $150+ range.

    From the reports I've read there are only a few true cord cutters, mostly at the fringes of the market. But there appears to be a growing trend among young adults that are choosing not to subscribe in the first place. In college they don't subscribe, or use their parent's service and get much of their "tv" entertainment off the web. Once they've graduated and get jobs of their own they just never sign up for cable or sat. Their smartphones are far more important to them than their TVs.

    If this trend is real and continues to grow, that's when you'll see real changes in the industry. My own guess is that within 10 years cable/sat will be dominated by sports and news and that more and more people will stream their general entertainment. This will lead to a collapsing down of regular networks, so they'll only be one History channel, one Lifetime, etc, etc.
     
  2. longrider

    longrider DIRECTV A-Team DBSTalk Club

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    The smorgasbord is the best description of TV viewing I have seen. I am in the same position, I can count on one hand the channels (other than locals) that I watch regularly - Speed, Syfy, Comedy Central, TNT, and Fuel. NBC Sports gets a once a week viewing in the summer for motocross, and while I do watch Monday Night Football the only games I really care about are also on a local.

    I seriously considered dropping DirecTV last winter but after analyzing the costs of what I would need instead (DVR, streaming subscriptions, series I would have to buy on disc) and what I would give up (all motorcycle racing except MotoGP) I just cut back all the extras and have one HR24 and Total Choice plus. However if prices keep going up I will have to revisit this.
     
  3. joshjr

    joshjr Hall Of Fame DBSTalk Club

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    To each their own.
     
  4. Mike Greer

    Mike Greer Hall Of Fame

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    Excellent point with the smorgasbord comment!

    I just went through my series manager and I do have to add Travel and TVland to my list.

    So officially if all the channels other than my locals, Showtime, Discovery, SyFi, Comedy Central, History Channel, TVLand and Travel Channel went away today I wouldn’t notice!

    Wow, maybe it is getting closer to cord-cutting time….
     
  5. Mike Greer

    Mike Greer Hall Of Fame

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    Holy @#$^$%@#! How many hours a day do you watch TV?

    I can see why you'd be against changing the current pricing model....
     
  6. sigma1914

    sigma1914 DIRECTV A-Team DBSTalk Club

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    About 8 hours... I'm somewhat homebound due to disability. I know I'm not the average viewer.
     
  7. hdtvfan0001

    hdtvfan0001 DIRECTV A-Team

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    Maybe not far from average either....but at least we know you're much smarter than the average Bear.
     
  8. Mike Greer

    Mike Greer Hall Of Fame

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    Ah, I wonder what the average is anyway?

    I do watch a lot of TV but the majority of it comes form CBS, ABC, NBC and Showtime.

    I don't think I can even name "35 basic cable channels" without looking!
     
  9. tonyd79

    tonyd79 Hall Of Fame

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    According to a NYT article dated May 3, 2012, viewing was about 153 hours and 19 minutes a month, which is over 5 hours a day. This article cites a decrease of about 30 seconds a day from the previous year. (Dates were 4Q of 2011 and 2010).

    http://mediadecoder.blogs.nytimes.com/2012/05/03/nielsen-reports-a-decline-in-television-viewing/

    Also from a VideoMind article from December 2011:

    "Meanwhile, on a weekly basis, the number of channels watched has increased slightly to 16 from 11."

    http://videomind.ooyala.com/blog/forget-bundle-consumers-have-appetite-choice

    I really think people watch more channels than they think they do. And if you are sports watcher, your numbers go way up. Especially if you have out of market sports on satellite or cable.
     
  10. DirectMan

    DirectMan AllStar

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    I would like to see D* make local channels optional. The reason is not that I would want to delete them from my package but rather that this would help to put a brake on the retransmission requests/demands by the networks. If subscribers in big cities like LA and NY where over the air broadcasts are plentiful and available in high quality are charged separately for locals, there might be a big push to install antennas to eliminate the extra fee. Lower subscriber levels might temper the requests by the programmers.
     
  11. PrinceLH

    PrinceLH New Member

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    Yeah, price increases. The price we pay, for watching Viacom's hatchet jobs on their programming. I wish that they had held the line on this, during the Viacom dispute. I would have gave them no increase, because of their jamming of commercials, into their programming.
     
  12. stoutman

    stoutman Godfather

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    That is not how the business works. Local channels are in the base packages for a reason. The revenue to a local channel is their life blood now. Free over the air with advertising and network support is from an era in the past. ESPN, RSN or locals are not leaving the base without a bloody fight in which the provider might lose. Dish provides wonderful case studies.
     
  13. usnret

    usnret Icon

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    Titan25 - at the $16+ per sub one can assume that 1,900,000 people aren't gona pay that amount, even though they like the channel. I would assume 1/2 would stick with it, thus making it $32+ per sub. Or am I getting something wrong here with my assumption?
     
  14. Diana C

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    I would think that is a reasonable assumption.
     
  15. Oct 1, 2012 #115 of 134
    bills976

    bills976 Godfather/Supporter

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    I'd be pleased as punch if I could just subscribe to...

    OTA stations (Free)
    NFL Sunday Ticket
    NHL Center Ice
    DVR service for OTA

    I really don't need anything else. I pay $80/mo for a base package that I might use once or twice a week outside of OTA networks, NFL, and NHL. I'm a huge sports fan and ESPN gets little to no play in my house.

    I also think many in this thread are discounting the impact young adults (25-35 or so) are having on subscriber counts. I am one of those adults and have a tech job where I make over six figures, and work with many other people in the same income bracket. All of us can easily afford TV at this price, but I'm the only idiot paying this much for TV, and the only reason I'm doing it is because I have to have Sunday Ticket. The rest of them are using Crackle, Netflix, lifeline cable from their internet subscription, and Redbox with some that are "splurging" on Hulu Plus. No one has to have TV. It'll just be replaced with other forms of mindless entertainment like Sporcle, YouTube cat videos, and posting on message boards like this.
     
  16. Oct 1, 2012 #116 of 134
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Every dollar the price bumps up the less people who are going to pay. At some point the provider will need to accept a price that would be a loss compared to the current 20c for everyone pricing structure - or cease transmission.

    Operating at a loss means finding cheaper programming. Like it or not "reality" is fairly cheap. And for some reason people watch it ... so channels airing "reality" shows can sell those viewers and make money to cover their losses.

    I hate to think of the number of channels I actually watch out of my subscription ... but then I remember that it is more channels than I would watch if my subscription were a la carte. If I had to decide in advance to subscribe to a channel before watching the content there I probably wouldn't bother with most channels. Even if the linear channel or its content were easily available "on demand" for instant purchase it would be easier to pass than pay ...

    For example, how much is watching Steven Colbert on OWN worth? As part of my monthly subscription I get OWN and "never" watch it. But this weekend OWN aired an interview of Colbert and I could watch it at no extra cost (over what I already pay). Would I have paid $5 for that interview? I am glad I did not have to make the choice.
     
  17. Oct 1, 2012 #117 of 134
    Diana C

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    Exactly...and what many a la carte advocates don't realize is that most would be forced to the second option: cease transmission. We would be left with perhaps 10 general interest channels.

    But, on the bright side, they'd all have terrific picture quality. ;)
     
  18. Oct 1, 2012 #118 of 134
    JoeTheDragon

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    well I think on cable under the old 1992 law you can get limited basic and add stuff like HBO to it.

    Now maybe we need the same law for sat and stuff like NFL Sunday Ticket
    NHL Center Ice do fall under addon channels packs like how HBO is.
     
  19. Oct 1, 2012 #119 of 134
    joshjr

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    In my home town to do this requires a digital box which is $10 a month even if you dont get any additional channels. Not to mention most cable DVR's dont have crap for recording space.
     
  20. Oct 1, 2012 #120 of 134
    JoeTheDragon

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    can also get a cable card for less then $10 a month.
     

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