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2013 DIRECTV Price Increases


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#241 OFFLINE   HarleyD

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Posted 30 December 2012 - 07:37 AM

ok I did some checking into the RSN Fee today. I found because I get Root Sports (from Pittsburgh) along with STO (Sports Time Ohio) and Fox Sports Ohio I am lucky enough to qualify for this special fee... YAY :( But what I am at odds with and someone here maybe able to help. I leve in North East Ohio, my locals come from the Youngstown DMA, Cleveland is considered my neighboring locals, this si what gets me. So I am in the secondary Pittsburgh market aswell, but back on Cleveland. I am in Clevelands DMA for "Neighboring Locals" Dish has those, last I knew on the national beam but I can not in any way shape of form get D* to put those on my programing, (I would pay extra for them) But I am forced to get Fox Sports Pittsburgh, I don't watch Penquin Hockey or Pirates Baseball (who does) But I can not opt out of that crappy channel. I get teh sports pack from football season until the end of college hoops and Hockey. I for the life of me can not remember watching Roots Sports..... That's my comment I can't get channels I am aloud to have and would pay 5 bucks a month to have but I am forced into having 1 crappy channel that is going to cost me 2 more bucks. OK rant over. Have a Happy New Year everyone!!!!


Since you would pay extra lay out a one time $50 expense and get an AM21 and you can select a secondary Zip code. Just punch in 44110, or any other zip in the Cleveland metro area and those will show up in your guide as well.

Now those are just the OTA channels (ergo an antenna will be required) but if you are already getting STO and Fox Sports Ohio those are the Cleveland RSNs. OTA is all you are missing.

This will let you get all of the sub channels as well.

I grew up in Youngstown and Boardman so I feel your pain. It's Youngstown, no it's Pittsburgh, no it's Cleveland.

The Pittsburgh and Cleveland Mob families had some especially "spirited" debates on that topic.

Edited by HarleyD, 30 December 2012 - 07:48 AM.

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#242 OFFLINE   joed32

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Posted 30 December 2012 - 09:24 AM

--
I think it's because ESPN requires a certain penetration rate of the customer base, which is ungodly (in the 90's I think). If you make it a la carte like premiums, HD Extra Pack, etc, then that penetration can not be reached.
--
I'm sure someone can confirm the penetration thing.


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#243 OFFLINE   lparsons21

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Posted 30 December 2012 - 09:29 AM

Like others, I'm not enamored of rate increases either, but as rate increases go, this is smaller than I had actually expected.

I have been a switcher in the past, but looking at D* and E*'s new rates, I can stay with D* cheaper than I can switch. And now that I've got a 3D TV coming, I have an even better reason for staying with D* and keeping Premier! :)

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#244 OFFLINE   damondlt

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Posted 30 December 2012 - 10:04 AM

Like others, I'm not enamored of rate increases either, but as rate increases go, this is smaller than I had actually expected.
:

Up $10 for me is $5 more then I expected. :(
I'm one of those that took a 7.5% increase. Thats much higher then I expected.

That puts me at $175 per month, and I don't have Starz,Sports pack ,or Showtime.

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#245 OFFLINE   lparsons21

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Posted 30 December 2012 - 10:17 AM

I'll end up at $150 with Premier, 3 HDDVRs, HD and MRV before discounts. But I always get discounts when I call to downgrade from Premier. Anywhere from $20-$40 per month depending on what the Magic 8 ball tells the CSR to do! :)

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#246 OFFLINE   HinterXGames

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Posted 30 December 2012 - 10:24 AM

This is a family forum.


:lol::lol::lol::sure:

#247 OFFLINE   hdtvfan0001

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Posted 30 December 2012 - 12:13 PM

In all honesty...I struggle with a value-based return on investment for the convenience, freedom of choice, and access to stored viewing content when it exceeds about $100/month. That's a common threshold for pain.

I could justify in my own mind that we don't need more than 2 local TV stations and perhaps 2 national networks...as well as maybe 2 dozen specialty network groups....but I'm probably not going to live long enough to see that day.

The ultimate result of annual increases is that more and more customers begin to figure out ways to cut back. As that demand lowers...likely so will the number of channels in the future. It seems like pretty clear writing on the wall.
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#248 OFFLINE   joshjr

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Posted 30 December 2012 - 12:44 PM

Up $10 for me is $5 more then I expected. :(
I'm one of those that took a 7.5% increase. Thats much higher then I expected.

That puts me at $175 per month, and I don't have Starz,Sports pack ,or Showtime.


Sounds like Premier could be a cheaper better way to go for you.
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#249 OFFLINE   Billzebub

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Posted 30 December 2012 - 01:23 PM

Up $10 for me is $5 more then I expected. :(
I'm one of those that took a 7.5% increase. Thats much higher then I expected.

That puts me at $175 per month, and I don't have Starz,Sports pack ,or Showtime.


I'm confused. With 4 DVR's, the protection plan, whole home, HD and Premier I'm at $170.98 before discounts. I guess this will go to about $175 with the increase. What could you have that takes your package to $175 without Starz, Showtime and the sportspack?

#250 OFFLINE   mshaw2715

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Posted 30 December 2012 - 01:41 PM

out of market sports packages can be one thing that can do that.

I'm confused. With 4 DVR's, the protection plan, whole home, HD and Premier I'm at $170.98 before discounts. I guess this will go to about $175 with the increase. What could you have that takes your package to $175 without Starz, Showtime and the sportspack?



#251 OFFLINE   damondlt

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Posted 30 December 2012 - 03:15 PM

I'm confused. With 4 DVR's, the protection plan, whole home, HD and Premier I'm at $170.98 before discounts. I guess this will go to about $175 with the increase. What could you have that takes your package to $175 without Starz, Showtime and the sportspack?


  • Choice Ultimate $78
  • HBO/Cinemax $28
  • Protection Plan $6
  • HD/DVR/ Whole Home. $23
  • 3 addtional Receivers $18
  • HD Extra $5
  • RSN Fee $2
Sub Total.$160
  • PA Sales 6% ($9.60)
Total $ $169.60

Sorry $170 per month.

Premier Would cost me $190

DIRECTV Since 5/13/2012:

    Living room      Master Bedroom        Bedroom 2            Bedroom 3       Office/Bedroom 4      

HR34-700  /  C31-700  /  HR24-500 / HR23-700  /  H25-100 

Slimline 5 / SWiM 16 / Premier / HD Xtra / MLB EI  / MRV

Blue Ridge Cable Networked 30-3 Mbps 

 

 

 


#252 OFFLINE   James Long

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Posted 30 December 2012 - 05:09 PM

It will be interesting to see the mid-year 2013 numbers on new subscribers and YTD revenue for various providers. That might give a clearer indication of the impact of customer switiching....

"New" subscriber numbers includes the flippers ... looking at 2011 for DirecTV it was a good year for Gross Added Subscribers (the best on record with 4.3 million "adds"). But although it was the best of times in the add column it was the worst of times in the loss column. More people left DirecTV in 2011 than any previous year ... and it was the lowest year in net additions in the past few years.

So how is 2012 shaping up? DirecTV will have to add over 1.3 million customers in 4Q to beat the gross add record set last year. They will only have to lose 776k customers in 4Q to beat the gross loss record set last year. DirecTV has not had a gross loss under 776k since 1Q 2009 so I expect that record to be beat in 2012. The net adds for 2012 will be a new low (for recent years).

That is the subscriber numbers for 2012 ... DirecTV revenue was the highest ever for 2011 and will likely break that record in 2012.

So, set against this background, what will show the impact of customer switching? We are already seeing record numbers of customers leaving and customers signing up ... more of the same would not be surprising. When money is tight switchers will look for the best deal.

#253 OFFLINE   Tubaman-Z

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Posted 30 December 2012 - 07:19 PM

The ultimate result of annual increases is that more and more customers begin to figure out ways to cut back. As that demand lowers...likely so will the number of channels in the future. It seems like pretty clear writing on the wall.


As more customers figure out ways to cut back, that should equate to lower demand which should drive lower prices in order to increase demand in order to maximize returns. However I don't think that that economic model will be applied here. I think it will instead drive higher prices for those remaining and as you stated, lesser choice.

I don't in any way begrudge D* the need to increase prices to cover increased fixed costs. And I do find increased value in the service now compared to a year ago due to the added HD channels, including my locals. That said, each of the last couple of years I have dropped a receiver/DVR each year with the price increase. I'm now down to 3 DVRs and would likely have a revolt in my household if I drop one more. As our household income has not increased I need to determine how best to cover any increase (D*, auto insurance, gasoline, taxes, whatever) - in your words, "cut back". I'd drop Starbucks, but since I already brew my own coffee at home and take it in a thermos to work, that's not an option. :) I'll be looking at a lower package (currently on grandfathered Choice Extra Classic) and trying to sell that to the rest of my household.

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#254 OFFLINE   dpeters11

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Posted 30 December 2012 - 07:25 PM

Just keep in mind that you can't go back to your current package, so make sure it's the right move or that you're fine with the current equivalent.

#255 OFFLINE   Billzebub

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Posted 30 December 2012 - 08:08 PM

  • Choice Ultimate $78
  • HBO/Cinemax $28
  • Protection Plan $6
  • HD/DVR/ Whole Home. $23
  • 3 addtional Receivers $18
  • HD Extra $5
  • RSN Fee $2
Sub Total.$160
  • PA Sales 6% ($9.60)
Total $ $169.60

Sorry $170 per month.

Premier Would cost me $190


I see what you mean/ but why are you paying for the HD Extra Pack? It's easy enough to get for free.

#256 OFFLINE   bixler

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Posted 30 December 2012 - 08:18 PM

True, but a 25% increase is typically classified as steep.


Dude....it's $2.....you are classifying that as steep? The percentage means NOTHING because if you don't state your basis. If you can't afford the $2 a month then it's time to live within in your means and drop Directv.
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#257 OFFLINE   RACJ2

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Posted 30 December 2012 - 08:25 PM

As more customers figure out ways to cut back, that should equate to lower demand which should drive lower prices in order to increase demand in order to maximize returns. However I don't think that that economic model will be applied here. I think it will instead drive higher prices for those remaining and as you stated, lesser choice.

I don't in any way begrudge D* the need to increase prices to cover increased fixed costs. And I do find increased value in the service now compared to a year ago due to the added HD channels, including my locals. That said, each of the last couple of years I have dropped a receiver/DVR each year with the price increase. I'm now down to 3 DVRs and would likely have a revolt in my household if I drop one more. As our household income has not increased I need to determine how best to cover any increase (D*, auto insurance, gasoline, taxes, whatever) - in your words, "cut back". I'd drop Starbucks, but since I already brew my own coffee at home and take it in a thermos to work, that's not an option. :) I'll be looking at a lower package (currently on grandfathered Choice Extra Classic) and trying to sell that to the rest of my household.

If you can get an OTA signal of your locals, make a new years resolution to watch free TV for a period of time. If you suspend your account for a month or so, it should more than offset your increased annual cost.
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#258 OFFLINE   hdtvfan0001

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Posted 30 December 2012 - 08:35 PM

"New" subscriber numbers includes the flippers ... looking at 2011 for DirecTV it was a good year for Gross Added Subscribers (the best on record with 4.3 million "adds"). But although it was the best of times in the add column it was the worst of times in the loss column. More people left DirecTV in 2011 than any previous year ... and it was the lowest year in net additions in the past few years.

My point exactly...a model that isn't sustainable - not for DirecTV, Dish, or anyone else.
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#259 OFFLINE   chick3112215

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Posted 30 December 2012 - 10:00 PM

Since you would pay extra lay out a one time $50 expense and get an AM21 and you can select a secondary Zip code. Just punch in 44110, or any other zip in the Cleveland metro area and those will show up in your guide as well.

Now those are just the OTA channels (ergo an antenna will be required) but if you are already getting STO and Fox Sports Ohio those are the Cleveland RSNs. OTA is all you are missing.

This will let you get all of the sub channels as well.

I grew up in Youngstown and Boardman so I feel your pain. It's Youngstown, no it's Pittsburgh, no it's Cleveland.

The Pittsburgh and Cleveland Mob families had some especially "spirited" debates on that topic.

Yeah actually live in Niles, This is a Bengals/Wolverines house so our need for NFLST, we have an AM21, it resides in the attic, when the roof was redone the antennat one the roof with the rotar came down. We loved TH!S TV and some other sub channels from Cleveland, TW Cable gets those channels (Fox 8 CBS 19) The AM21 got those Dish should provide them but alas they never did anything with the neighboring locals, why IDK but it is what it is. Nice to see a NE Ohioan here!

#260 OFFLINE   James Long

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Posted 30 December 2012 - 10:22 PM

My point exactly...a model that isn't sustainable - not for DirecTV, Dish, or anyone else.

It is perfectly sustainable ... more adds than losses, even at a record breaking pace, means the number of customers are increasing. Revenues will easily break last year's (2011) best ever year in 2012. Even if they were posting an overall loss in customers the system is sustainable.

The only downside is the "churn" number that appears in reports. Somehow it looks bad to lose 19% of your customers in a year ... even if you end the year with 3% more customers you started with. But the bottom line is profit. Make a few billion dollars every year in profit and the people who matter ... the stockholders ... will overlook a bad number like churn or even net subscriber loss. Informing said stockholders that the bad numbers are "normal for the industry" while showing them record profits makes the bad numbers practically moot.

DirecTV's price increases are not out of line for the industry ... and while some may scale back their subscriptions and others may leave I do not expect the effects of this particular change to be any worse than price increases in previous years. It is just part of the industry.




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