Standing up to these people is for the good of the customer. People continually forget the basic law of business that has been around since the first business began; overhead + profit margin = what the consumer pays. Channel rates go up > overhead goes up > customer pays more.
Exactly, if DirecTV didn't stand up to these demands our rates would be going up $20-30 dollars a month every year instead of $5.
Have you never negotiated for anything in your life? You always start high so you have room to come down. If you start to low and your first offer gets accepted then you probably just lost money.
For example if you want to sell a TV on Craigslist do you list it for what you actually want, or do you list it higher? I would list it higher, cause you know people are going to offer you less than what you list it for. Then you can just accept the highest offer. Say I want $700 for the TV, I'm going to list it for $800. That way if someone offers $800 or $750 I actually make more then I really want, but if my highest offer is $700 then I still get what I wanted. If my highest offer is $650 I don't sell it. If I list it for $700 and someone calls up right away and offers $700, where they would have been willing to pay $800 or $750 I just lost money that I could have made.
The problem comes when you have unreal expectations like I have seen sometimes. You might find a used TV that is on Craigslist for $500, but you can buy the exact same TV on Amazon new for $400. You contact the person and tell them that and they won't budge off their price of $500 cause they paid $600. That person has unreal expectations.
The same thing happens here. Diversified finds out that Fox in NY just got a 300% increase in their price to DirecTV so they figure they can get 300% too. What they fail to realize is that Fox is more popular than the CW, and LA is a lot bigger market than Bangor, ME. Expecting to get the same kind of increase is unreasonable.
Sometimes when I reflect back on all the beer I drink I feel ashamed. Then I look into the glass and think about the workers in the brewery and all of their hopes and dreams. If I didn’t drink this beer, they might be out of work and their dreams would be shattered. Then I say to myself, "It is better that I drink this beer and let their dreams come true than be selfish and worry about my liver."
-by Jack Handy