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Rate increases coming, could be worse


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133 replies to this topic

#1 OFFLINE   ChicagoBlue

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Posted 11 September 2012 - 08:47 AM

Comcast had their second price increase in a year announced this weekend to Atlanta and other customers. DISH will be raising prices a good chunk this year considering their earnings were so below the mark this year, margins ate them up.

http://www.ajc.com/n...this-yea/nR6fN/


DTV certainly will have to raise prices to offset Viacom, local channel increases and all the built in escalator rate increases from the HBO, ESPNs, etc of the world.

Simply a matter of how much.

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#2 OFFLINE   HarleyD

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Posted 11 September 2012 - 08:58 AM

The rates go up every year around February/March.

I expect no different this year.
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#3 OFFLINE   lokar

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Posted 11 September 2012 - 09:31 AM

I am hopeful that the rates rise to the point where there will be mass defections from all cable/satellite providers and then the rates will fall. It is ridiculous that rates rise far higher than inflation every year and it's all because of no a la carte.

#4 OFFLINE   dpeters11

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Posted 11 September 2012 - 09:44 AM

To quote Inigo Montoya, "You keep using that word. I do not think it means what you think it means."

I see a la carte mentioned a lot as the solution for the costs going up. If it was an option, I don't think it would actually end up being the solution people think it would be.

#5 OFFLINE   Hoosier205

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Posted 11 September 2012 - 09:45 AM

I am hopeful that the rates rise to the point where there will be mass defections from all cable/satellite providers and then the rates will fall. It is ridiculous that rates rise far higher than inflation every year and it's all because of no a la carte.


Because of no a la carte? Not exactly. Be thankful we don't have a la carte. You'd be paying more for far less.
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#6 OFFLINE   Carl Spock

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Posted 11 September 2012 - 09:48 AM

lokar, you want to blame somebody, blame ESPN. They set their rate high because no service provider can survive being without them. They get their asking price. Every other network then falls in line.
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#7 OFFLINE   fireponcoal

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Posted 11 September 2012 - 10:23 AM

Thank god for bitmetv!

#8 OFFLINE   Carl Spock

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Posted 11 September 2012 - 10:54 AM

Here is an analysis of the typical cable/satellite customer's bill. For some folks, a quarter of their bill is just for ESPN and ESPN2. Wowsah!
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#9 OFFLINE   maartena

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Posted 11 September 2012 - 01:46 PM

The rates go up every year around February/March.

I expect no different this year.


Indeed.

This year, we have seen:

- Tribute Dispute.
- Viacom Dispute.
- Local LLC dispute.
- NW Broadcasting dispute.
- Several other local disputes.

We are currently experiencing:

- PAC12 dispute. (Or not really a dispute, but still price negotiations).

We will see:

- TWC Sports Net Los Angeles negotiations.
- Discovery Communication contract renewal.
- CBS contract renewal.

And there are probably quite a few negotiations that have been done silently, where they came to terms quickly.

The new station additions mean more money. And the disputes almost always mean more money. I would EXPECT a increase, as much as $5 per package per month.
[Disclaimer] The definition of "soon" is based solely on DirecTV's interpretation of the word, and all similarities with dictionary definitions of the word "soon" are purely coincidental and should not be interpreted as a time frame that will come to pass within a reasonable amount of time.

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#10 OFFLINE   maartena

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Posted 11 September 2012 - 01:48 PM

I am hopeful that the rates rise to the point where there will be mass defections from all cable/satellite providers and then the rates will fall. It is ridiculous that rates rise far higher than inflation every year and it's all because of no a la carte.


A la carte will most definitely INCREASE your monthly bill.
[Disclaimer] The definition of "soon" is based solely on DirecTV's interpretation of the word, and all similarities with dictionary definitions of the word "soon" are purely coincidental and should not be interpreted as a time frame that will come to pass within a reasonable amount of time.

I am the Stig.

#11 OFFLINE   jdspencer

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Posted 11 September 2012 - 01:49 PM

Instead of following the crowd, it would be nice if a content provider just held the line in what they charge. It seems like they just raise their rates because they can and the customers just accept it.

Although a-la-carte sounds like a solution, it would raise your costs as Hoosier said above.
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#12 OFFLINE   n3vino

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Posted 11 September 2012 - 05:49 PM

What happens is that all broadcaster raise their prices. The problem with that is that if any provider let's those channels go, subrscribers will jump ship. We have no one to blame but ourselves.

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#13 OFFLINE   kevinturcotte

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Posted 11 September 2012 - 05:52 PM

Ala Carte is a double edged sword. If you really only want just a few channels, it will probably work out fine for you. If you like a variety though, chances are your bill would go up.

#14 OFFLINE   dpeters11

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Posted 11 September 2012 - 06:03 PM

Ala Carte is a double edged sword. If you really only want just a few channels, it will probably work out fine for you. If you like a variety though, chances are your bill would go up.


Would probably depend on who owned those channels as well. If one was owned by Viacom as an example, it might not work out as well.

#15 OFFLINE   harsh

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Posted 11 September 2012 - 06:26 PM

lokar, you want to blame somebody, blame ESPN. They set their rate high because no service provider can survive being without them.

ESPN is kind of like HBO used to be before the sum total of their offering was two or three original series. I think people will start learning to survive without ESPN when the average monthly DIRECTV bill tops $100 (I'm predicting the Fall of 2013).

With ESPN having to compete with new NCAA conference nets and new RSNs as well as the other incumbents, they're going to struggle mightily to justify the rates.

Being the "Sports Leader" is going to be an exceedingly costly proposition.

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#16 OFFLINE   bobnielsen

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Posted 11 September 2012 - 06:41 PM

Perhaps Directv could offer some ESPN-less packages at proportionally lower rates (e.g., why is it included in the Entertainment package?)

#17 OFFLINE   TheRatPatrol

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Posted 11 September 2012 - 07:03 PM

Indeed.

This year, we have seen:

- Tribute Dispute.
- Viacom Dispute.
- Local LLC dispute.
- NW Broadcasting dispute.
- Several other local disputes.

We are currently experiencing:

- PAC12 dispute. (Or not really a dispute, but still price negotiations).

We will see:

- TWC Sports Net Los Angeles negotiations.
- Discovery Communication contract renewal.
- CBS contract renewal.

And there are probably quite a few negotiations that have been done silently, where they came to terms quickly.

The new station additions mean more money. And the disputes almost always mean more money. I would EXPECT a increase, as much as $5 per package per month.


CSN-Houston too.

#18 OFFLINE   Satelliteracer

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Posted 11 September 2012 - 07:13 PM

A la carte will most definitely INCREASE your monthly bill.


+1
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#19 OFFLINE   ChicagoBlue

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Posted 11 September 2012 - 08:41 PM

Perhaps Directv could offer some ESPN-less packages at proportionally lower rates (e.g., why is it included in the Entertainment package?)


Not going to happen. ESPN requires 85% to 90% penetration for the entire subscriber base. They get it because they can. Which means, if DTV offers a package without ESPN and it sells too well, they are in breach of contract. This is across the industry. Fox is the same way, because they can.

This is why you see very few packages in cable, telco, satellite that exclude ESPN. Those packages that do, they are very lightly penetrated.


So your solution, while admirable, is not possible and the industry knows it.

#20 OFFLINE   ChicagoBlue

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Posted 11 September 2012 - 08:45 PM

A la carte will most definitely INCREASE your monthly bill.


It is not even a subject of debate. You would pay a lot more for a lot less. It is happening as we speak in Canada.

There is also political reasons why it won't happen. Think about channels like BET that serves the African American audience. If that was no longer just included in your base package, how many people would buy it? 15% of the population? 20%? Let's be generous and say 30%. No way they could survive that way, they would go belly up. Now, tell a politician that and watch the sparks fly. Now gov't starts to pick winners and losers again (which they do all so well :nono2: ) and will demand some channels are still carried for political reasons while others have to survive via the market and a la carte. It is a disaster in the making.

Far less options, higher prices = pure a la carte model. It has been studied many times. Will not work.

#21 OFFLINE   Mike Greer

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Posted 11 September 2012 - 10:01 PM

So few channels are worth a spit… I say save bandwidth and let 80% of the crap just go away.

As more and more people pull the plug and go online with streaming we get closer and closer to A la carte by way of Net Flix, Hulu, Apple TV etc. Sure the cost will shift to pay for Internet service but I think we’ll still be ahead.

I do believe A la carte is the future – just not through the typical means… Especially not with DirecTV. I personally don’t see much of future for the current model. At the current rate of increases the average bill will be $200 and there will be even more channels that few people watch but are forced to pay for.

I can buy a lot of programming from Amazon, Hulu, NetFlix etc for $200 a month.

I hope DirecTV is preparing for the likely defection of customers who don’t put such high value on crap programming….

#22 OFFLINE   MattScahum

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Posted 11 September 2012 - 10:33 PM

Its not just programming costs though. People want their equipment to do more and more but expect their bill to stay the same. Never gonna happen. Also providers holding strong on rate increases isn't going to happen, see dtv vs viacom amd dish vs amc
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#23 OFFLINE   Satelliteracer

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Posted 11 September 2012 - 10:48 PM

Television viewing remains stronger than ever. 97% of American HH's watch television. They may be augmenting with other services, but TV is still the king. Americans are watching over 35 hours of television per week, some demographics over 50 hours per week. Many more are watching on a 2nd device, but still getting that service from a television operator.
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#24 OFFLINE   Satelliteracer

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Posted 11 September 2012 - 10:50 PM

So few channels are worth a spit… I say save bandwidth and let 80% of the crap just go away.

As more and more people pull the plug and go online with streaming we get closer and closer to A la carte by way of Net Flix, Hulu, Apple TV etc. Sure the cost will shift to pay for Internet service but I think we’ll still be ahead.

I do believe A la carte is the future – just not through the typical means… Especially not with DirecTV. I personally don’t see much of future for the current model. At the current rate of increases the average bill will be $200 and there will be even more channels that few people watch but are forced to pay for.

I can buy a lot of programming from Amazon, Hulu, NetFlix etc for $200 a month.

I hope DirecTV is preparing for the likely defection of customers who don’t put such high value on crap programming….


It will just shift the pricing over there, then. The content rights owners get most of their money from the distributors. If people shift to Netflix, Hulu, etc, then you can bet your bottom dollar (pun intended) that the providers will demand huge sums of money from Netflix, Hulu, etc. They have to get their money to pay for things like NFL Monday Night football rights, production of HBO series, production of FOX, CBS, ABC series, etc, etc. Huge amounts of money for development costs, sports rights fees, etc. At the end of the day, that has to be paid for one way or another.
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#25 OFFLINE   Dude111

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Posted 12 September 2012 - 12:32 AM

I am hopeful that the rates rise to the point where there will be mass defections from all cable/satellite providers and then the rates will fall. It is ridiculous that rates rise far higher than inflation every year and it's all because of no a la carte.

Especially when THE QUALITY OF PROGRAMMING doesnt get any better!




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