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New Directv Prices


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#126 OFFLINE   zimm7778

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Posted 26 December 2011 - 10:16 AM

Yep, 7% net profit on commodity product. That is huge for that type of product. And of course, don't forget the creative accounting that goes on to be able to publish that number with a straight face!


As reported on the CBS Evening News several months ago meanwhile several other companies were in double digits so nice try on the straight face part. Oil companies aren't a charity. Btw, I am in no way a shareholder of any oil company unless they are part of a mutual fund I have in a retirement account. I am just sick and tired of people whining about gas prices, health insurance cost, etc going up and everyone immediately crying about those awful corporations. Corporations who employ hundreds of thousands of people. They can't charge more when their cost of business goes up or revenue goes down, people wind up out of work. Yes, I know it's happening all over the place but it could be (and could get) a lot worse. I don't like paying $3.16 a gallon either. I don't like my high copays for the doctor and medications. But such is life. I know the oil companies and insurance companies aren't the real guilty parties but it's much easier to blame them. Same applies to Directv. I dont like the increased cost at all. But like others have said, when they say they are going to fight back on channels demanding higher payments on renewal and people threaten to leave because they may lose the channel, what do you think is going to happen? They agree to it and the programming package costs go up. Blame the companies that provide the programming, don't just throw Directv under the bus because they are the ones charging the new rate to us. Again, they aren't a charity.

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#127 OFFLINE   Gloria_Chavez

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Posted 26 December 2011 - 11:40 AM

No comparison between the oil companies and PayTV providers. Oil companies provide the most efficient energy available, bar none. A kilowatt of carbon-based energy costs as little as 4 cents, while the comparable solar or wind-turbine provided hour costs, on average, 25 cents.

Oil provides MUCH more value added to our society than PayTV. Anyone who disputes this is completely unattached to reality.

As for the ratehikes, I blame the original PayTV negotiator who gave in to ESPN's demands. From that point on, all programmers compare themselves to ESPN. One week ago, History Channel made a case why it should be compared to ESPN. And frankly, if ESPN gets 5 dollars a sub, why shouldn't History Channel get at least 1.50.
Since 1995 the average cable bill has increased 122%, while TV consumption per household just 13%.

http://www.multichan...1_Per_Month.php

http://blog.nielsen....-all-time-high/

#128 OFFLINE   zimm7778

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Posted 26 December 2011 - 12:19 PM

No comparison between the oil companies and PayTV providers. Oil companies provide the most efficient energy available, bar none. A kilowatt of carbon-based energy costs as little as 4 cents, while the comparable solar or wind-turbine provided hour costs, on average, 25 cents.

Oil provides MUCH more value added to our society than PayTV. Anyone who disputes this is completely unattached to reality.

As for the ratehikes, I blame the original PayTV negotiator who gave in to ESPN's demands. From that point on, all programmers compare themselves to ESPN. One week ago, History Channel made a case why it should be compared to ESPN. And frankly, if ESPN gets 5 dollars a sub, why shouldn't History Channel get at least 1.50.


I know there's no comparison as far as the product, I'm making the comparison in regards to complaints, the "record profits" which don't matter when it's the profit margin that does, and putting the blame on who's largely at fault and not the one you just pay your bill to.

#129 OFFLINE   harsh

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Posted 26 December 2011 - 12:48 PM

DVR Lifetime, according to the current TOS, cannot be removed unless you leave DirecTv for over a year (I believe).

The Customer Agreement currently states that you can maintain lifetime DVR service as long as you can maintain the account that you bought it on. If you change accounts, you would appear to be done; otherwise you're golden.

Since you can only suspend for up to six months per 12 month period, it would seem that your account would be closed after that time (or you would need to go active for a time).

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#130 OFFLINE   harsh

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Posted 26 December 2011 - 01:00 PM

No comparison between the oil companies and PayTV providers. Oil companies provide the most efficient energy available, bar none. A kilowatt of carbon-based energy costs as little as 4 cents, while the comparable solar or wind-turbine provided hour costs, on average, 25 cents.

That may be the case where you live, but out here in the Pacific Northwet, hydroelectric power is much more economical than anything that burns hydrocarbons. What hydrocarbon plants we have are either natural gas or coal fired.

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#131 OFFLINE   lparsons21

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Posted 26 December 2011 - 01:23 PM

I know there's no comparison as far as the product, I'm making the comparison in regards to complaints, the "record profits" which don't matter when it's the profit margin that does, and putting the blame on who's largely at fault and not the one you just pay your bill to.


It is the different class of product that is being sold that tells the tale.

Oil at 7% net profit is very high for commodity products

Compare that to the grocery businesses, not the mom and pop stores, but the bigger ones, including chains. All commodity sales, net profits less that 3% and sometimes as low as 1.5%. And they aren't getting any gov't subsidies either... :)

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#132 OFFLINE   mreposter

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Posted 26 December 2011 - 01:26 PM

I know there's no comparison as far as the product, I'm making the comparison in regards to complaints, the "record profits" which don't matter when it's the profit margin that does, and putting the blame on who's largely at fault and not the one you just pay your bill to.


Looking at Directv's most recent quarterly report shows that their profit margin on US operations increased to 14.8% in Q3-2011, up from 14.3% in the year prior.

It's obvious from all the press reports that programmers and station owners are attempting to increase subscriber fees, but don't pretend that Directv is a complete innocent in this game. Directv has been highly successful in increasing it's profit margins as well.
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#133 OFFLINE   James Long

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Posted 26 December 2011 - 01:32 PM

Exactly and this is why I never understand these threads at all. Why does everyone moan and groan about a price increase.

As long as people do not get carried away (over the top or off topic) these threads do little harm. They provide a good place for some to let of steam over the increases (better than punching the wife or kicking the dog) and let people come to terms over the new terms before they face their first higher bills.

I suppose if no one complained that might lead the providers into thinking that the market could bear an even greater price increase next year. So some complaining isn't a totally bad idea. :)

#134 OFFLINE   lparsons21

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Posted 26 December 2011 - 01:34 PM

Considering the business they are in, DirecTV is doing a bang up job with profits.

As to the coming rate increase, I can live with it and actually had expected it might be more. As others, I would be tickled if there were no increases, but that's not in the cards.

I'll patiently wait for the description of the Entertainment Package to come out as it might be what I'm looking for, but somehow I doubt it.

I like the Golf channel and ESPN2 for the Friday Night fights and suspect they won't be in that package.

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#135 OFFLINE   billsharpe

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Posted 26 December 2011 - 01:40 PM

Though I've seen people say that they were getting a $15 increase on FIOS. Of course that's a bundle, but you can't get away from price increases by going to another provider. Eventually, it'll catch up.


I switched to FiOS TV in October primarily to save $40 per month, although there were other considerations. The price supposedly is locked in for two years. Looks like I'll be saving more than $40 per month but I have no idea how much more based on the huge number of options presented by DirecTV's latest pricing plans.

The "other considerations" were the slow remote responses and DirecTV's ridiculous set replacement policy where they consider all HD DVRS from the 20 to the 24 to be equivalent. :confused:

And Verizon's VOD blows away anything comparable available via DirecTV.

I agree that price increases will eventually catch up with me, but I do get 126 OTA channels with my rooftop antenna. ;)
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#136 OFFLINE   robertk328

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Posted 26 December 2011 - 02:07 PM

Though I've seen people say that they were getting a $15 increase on FIOS. Of course that's a bundle, but you can't get away from price increases by going to another provider. Eventually, it'll catch up.


Hulu then ;-)

You're right though - no way to insulate except to cut the cord.

#137 OFFLINE   ms1960

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Posted 26 December 2011 - 02:09 PM

I was just thinking could a person subscribe to the family pack on directv and add the HD pack and would you get all the channels in the hd package?

#138 OFFLINE   n3vino

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Posted 26 December 2011 - 02:09 PM

I would be willing to bet that the promotional deal guarantees you X dollars off the current rate for a year or two, not a specific price for the term. If the price goes up your price goes up, you will just keep getting the specified discount

You may be right. I'll probably get a rate increase of three bucks. The discounted price is for a year. Then it goes up the next year to the regular price. Choice extra is $65.99 a month and I get a $31.00 discount for a year. They will probably give me a $3.00 + $1.00 DVR service increase.

That being the case, I wonder if I'll have the option of keeping the Classic or going with the new Choice Extra. Over the air is starting to look pretty good in about 21 months from now when my contract expires. By then, who knows, my CRT tv might have to be replaced with a new updated set with tuner and getting a new smaller set for the bedroom to replace the analog set, might be cheaper than trying to buy a digital converter box. Of course there's the price of the antenna. Here in S.A., we do have a bunch of local channels in HD. In addition to the big four, and CW and ION, there is another independent channel. Then there's Netflix for movies.

Edited by n3vino, 26 December 2011 - 02:20 PM.


#139 OFFLINE   zimm7778

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Posted 26 December 2011 - 04:20 PM

I will be interested to see what channels are in the entertainment package. I love sports but really have no use for ESPN or any of their networks. I'd like the NFL Network but even if it's not in that package I don't watch it for 6 months out of the year either.

#140 OFFLINE   A_Bear

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Posted 26 December 2011 - 04:27 PM

I don't see where dropping locals is an option. Sure, there is a line for TC+ No Locals, but it's been there before. That's for markets where locals arent offered I believe.


dropping locals is not an option, only avalible if we do not offer local channels in your area

#141 ONLINE   dpeters11

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Posted 26 December 2011 - 05:13 PM

I will be interested to see what channels are in the entertainment package. I love sports but really have no use for ESPN or any of their networks. I'd like the NFL Network but even if it's not in that package I don't watch it for 6 months out of the year either.


Satellite racer made it sound like espn would still be there.

#142 OFFLINE   HDTVFreak07

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Posted 26 December 2011 - 05:19 PM

It appears that in the past few years, prices all over (not just DirecTV, but Time Warner Cable and I'm sure Dish Network as well, and there shouldn't be a single company out there that ISN'T) keeps on increasing at least three dollars.

Now think about it. Let's say it started 5 years ago (I know it's been longer than that). Think, 5 years from now. Everybody will have been paying $30 more than they did 10 years earlier. This isn't right. Not right at all. COLA has increased and yet not many have income increase.

#143 OFFLINE   HDTVFreak07

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Posted 26 December 2011 - 05:22 PM

As long as people do not get carried away (over the top or off topic) these threads do little harm. They provide a good place for some to let of steam over the increases (better than punching the wife or kicking the dog) and let people come to terms over the new terms before they face their first higher bills.

I suppose if no one complained that might lead the providers into thinking that the market could bear an even greater price increase next year. So some complaining isn't a totally bad idea. :)


Think of it this way. In 10 years span, people will have paid at least $30 more than they did in the beginning. That isn't right.

#144 OFFLINE   markrogo

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Posted 26 December 2011 - 05:41 PM

No comparison between the oil companies and PayTV providers. Oil companies provide the most efficient energy available, bar none. A kilowatt of carbon-based energy costs as little as 4 cents, while the comparable solar or wind-turbine provided hour costs, on average, 25 cents.


The tiny system on my house will generate electricity for less than half of 25 cents / hour -- before accounting for tax credits and feed-through tariffs. I submit your information is out of date. There are also wind projects that are in single-digit pennies per kilowatt/hour. http://cleantechnica...for-0-70gallon/

I have no idea what this has to do with DirecTV and I'm not anti-carbon-based fuels as we need them for at least another couple of generations, but I find the facile dispensing of non-facts troublesome. So, sorry.

#145 OFFLINE   A_Bear

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Posted 26 December 2011 - 05:43 PM

I was just thinking could a person subscribe to the family pack on directv and add the HD pack and would you get all the channels in the hd package?


the answer to your question is NO, you will get the family channels that are included in that package (and what hd channels that also fall in that package)

and the hd extra pack inclues as follows

hd extra pack only includes the following
Price: $4.99/month
Channel Range: 560 - 568
channels:
Crime & Investigation
HDNet Movies
Hallmark Movie Channel
MGM HD
Palladia
ShortsHD
Smithsonian Channel
Sony Movie Channel
Universal HD

#146 OFFLINE   markrogo

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Posted 26 December 2011 - 05:49 PM

Ok, I trust you have a link / article to support that?


Well, aside from the fact that I worked in the industry and was CFO of a cable company.... And aside from the fact that this is a well known fact... And aside from the fact that I'm being incredibly arrogant in this answer because I'm tired of being challenged when I present facts...

"The fastest-growing expense is programming. The money the cable operators pay for the rights to channels like MTV, CNN and ESPN eats up just under $4 of every $10 they take in selling video service. Programming cost $1.0 billion at Time Warner in the first quarter, up 8 percent. At Comcast, programming cost $1.8 billion, up 9.6 percent. "

Source: http://bits.blogs.ny...-is-television/

"According to Matthew Harrigan at Wunderlich Securites, in 2009 DirecTV paid approximately $37/sub out of an ARPU of $85/sub to content owners for programming costs (i.e. affiliate fees). In this case, affiliate fees represent roughly 43% of total revenue for DirecTV. Similarly for Comcast, Matthew estimates programming costs at 37% of video revenue (Comcast has high-speed data and voice revenue that are separate). "

Source: http://abovethecrowd...world-go-round/

And there you have it. If your bill was $100, their programming costs were very approximately $40. If their programming costs went up 10% as they say -- which I don't doubt -- that's about $4 per month. They passed 100% of their increases on to you. Don't be naive and think otherwise.

#147 OFFLINE   Satelliteracer

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Posted 26 December 2011 - 06:31 PM

I could only read a few pages on the phone so I figured I would cut to the chase.

Yes, programming costs are going up about 10% this year. Price increases about 4% on average for customers. Programming costs are the largest line item in Directv's budget. Billions of dollars.

Choice Xtra and Total Choice Plus customers will be merged into one package called Choice Xtra Classic. Both packages have the same channels. A new Choice Xtra will launch in Feb that is different than the current Choice Xtra. The reality is that the cost of programming continues to climb at such a steep pace that channel lineups are changing. Some channels will be moved to higher tiered packages because they are over distributed at the price they are valued at considering who is watching. In other words, they are more niche and should be available on a higher tiered packages to try and contain costs and the prices Directv needs to charge.

HD extra Pack is not going up in price. None of the premiums are increasing, though Premier base package is going up ( it includes premiums). Most bills will go up between $3 and $4. There are certainly customers that will see higher increases and many that will see less than that.

Based on what I have seen of price increases from Some of the cable and Telco companies etc, , this far, looks like Directv is very much in line with the competition. Everyone is being hit with major programming cost increases. When you see ESPN spending billions of dollars for Monday Night Football, that cost ultimately comes to customers of pay television. The network deals, the retrans deals, the premium increases each year, etc, etc. all contribute to huge cost increases each year
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#148 OFFLINE   xtoyz

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Posted 26 December 2011 - 06:43 PM

I blame it on the 50k+ people who became irate when Fox threatened DTV last month, and they all demanded they suck it up and give it in. They gave in, and you're paying for it. Enjoy!

#149 OFFLINE   zimm7778

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Posted 26 December 2011 - 06:46 PM

I could only read a few pages on the phone so I figured I would cut to the chase.

Yes, programming costs are going up about 10% this year. Price increases about 4% on average for customers. Programming costs are the largest line item in Directv's budget. Billions of dollars.

Choice Xtra and Total Choice Plus customers will be merged into one package called Choice Xtra Classic. Both packages have the same channels. A new Choice Xtra will launch in Feb that is different than the current Choice Xtra. The reality is that the cost of programming continues to climb at such a steep pace that channel lineups are changing. Some channels will be moved to higher tiered packages because they are over distributed at the price they are valued at considering who is watching. In other words, they are more niche and should be available on a higher tiered packages to try and contain costs and the prices Directv needs to charge.

HD extra Pack is not going up in price. None of the premiums are increasing, though Premier base package is going up ( it includes premiums). Most bills will go up between $3 and $4. There are certainly customers that will see higher increases and many that will see less than that.

Based on what I have seen of price increases from Some of the cable and Telco companies etc, , this far, looks like Directv is very much in line with the competition. Everyone is being hit with major programming cost increases. When you see ESPN spending billions of dollars for Monday Night Football, that cost ultimately comes to customers of pay television. The network deals, the retrans deals, the premium increases each year, etc, etc. all contribute to huge cost increases each year


Not if Directv gave them the middle finger and only came to a new agreement if they agreed to go in a higher tier or lower their price. At some point the battle with these channels has to happen. I don't want to see a $100 basic package cost one day and still be paying for HD, DVR, and box fees on top of that. Can you shed any light on the entertainment package Sat Racer?

#150 OFFLINE   Drew2k

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Posted 26 December 2011 - 07:04 PM

Today via email I received the official notification from DIRECTV of the February 2012 rate changes. Here's their PDF:

http://f.cm.directv....GMJ792GMENG.pdf




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