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D* and NRTC end exclusive distribution agreement.

Discussion in 'DIRECTV General Discussion' started by Curtis0620, Jun 2, 2004.

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  1. Jun 2, 2004 #1 of 37
    Curtis0620

    Curtis0620 Hall Of Fame

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  2. Jun 2, 2004 #2 of 37
    Tusk

    Tusk Back in the Game DBSTalk Gold Club

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    Woo Hoo!

    Maybe DirecTv can become more competitive with Dish now that they won't have to go through multiple channels.
     
  3. Jun 2, 2004 #3 of 37
    Chris Blount

    Chris Blount Creator of DBSTalk Staff Member Administrator DBSTalk Gold Club

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    Here is news from SkyReports:

    BREAKING NEWS: DirecTV, NRTC End Original Sales Deal

    The National Rural Telecommunications Cooperative and DirecTV announced this morning that they amended their original sales agreement, a move that effectively ends NRTC's exclusive DirecTV service distribution contract within rural areas.

    DirecTV said with the new agreement, the NRTC's separate agreements for sale of the satellite TV service with its members and affiliates have been terminated, with an effective date of 90 days from today.

    However, NRTC and DirecTV have further agreed to enter into a new relationship that will provide NRTC members an opportunity to continue to participate as non-exclusive DirecTV retailers and service providers. NRTC's members will be able to sell their exclusive contract rights to DirecTV, and turn around and enter into agreements to continue marketing and selling DirecTV services on a non-exclusive basis, the cooperative said.

    "This is a classic win-win situation for NRTC's members and DirecTV. NRTC's members will be able to realize value from the businesses that they have so successfully built over the last decade while DirecTV will be able to retain NRTC's member base as part of its new national retail network," said Bob Phillips, president and CEO at NRTC.

    The NRTC has had exclusive rights to distribute most DirecTV services in rural NRTC territories since 1994.


    Also, here is the official release from DirecTV:

    http://ir.thomsonfn.com/InvestorRelations/PubNewsStory.aspx?partner=5276&StoryId=115156
     
  4. Jun 2, 2004 #4 of 37
    junki

    junki Godfather

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    BOY you guys are fast I was Just getting ready to post this crap from Peg-Sat,NRTC, and DTV.
    Well I might want to close my doors and move to a smaller location because this is going to hurt me bad. Peg-Sat is almost half my income.
    This Suxxxxxxx :mad: :mad:
     
  5. Jun 2, 2004 #5 of 37
    junki

    junki Godfather

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    Pegasus and DIRECTV are going to be ending their relationship, which upon completion will provide a better overall DIRECTV experience to you.

    We want to assure you, however, that in the interim, your DIRECTV Service will remain uninterrupted no matter what you might hear or read, and there's no need for you to do anything in order to continue receiving your service.

    As more information becomes available it will be posted here at www.directv.com/Pegasus. Stay tuned!

    Sincerely,
    DIRECTV
     
  6. Jun 2, 2004 #6 of 37
    Maniacal1

    Maniacal1 Godfather/Supporter

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    I can't wait to find out how to switch from Pegasus to DirecTV. I hope we can make it happens before Pegasus decides how they're going to fight back. I suspect they'll be seeking some kind of injunction soon.
     
  7. Jun 2, 2004 #7 of 37
    qwas12

    qwas12 AllStar

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    what is Pegasus?
     
  8. Jun 2, 2004 #8 of 37
    Ray_Clum

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    The world's biggest rip off artist, next to Halliburton...
     
  9. Jun 2, 2004 #9 of 37
    BobMurdoch

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    ... and what of the prime motivators keeping E* as the preferred choice for many in rural America.

    I wonder what E* will do to try and keep people from flocking to D* now that they have a real choice again.....
     
  10. SamC

    SamC Hall Of Fame

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    OK, here is the Reader's Digest version.

    Long ago, when DBS was just an idea, the forerunners of DirecTV needed money, so it sold the right to many rural areas to the National Rural Telecommuncations Co-op (NRTC). This was a group of rural electric co-ops, non-Bell phone companies, and like that. Many of these rights got re-sold to Pegasus, which is a company that owns some small market TV stations and other assets.

    In short, if you live in certain rural areas, all of the DirecTV deals and such that you see do not apply to you, in fact you cannot even call DirecTV and become a customer. You must buy through the NRTC, or through Pegasus, which provides inferior service at a higher price. While E* is able to directly (no pun intended) deal with anybody living anywhere. Obviously an advantage for E*.

    Since then DirecTV has regreted this decision greatly and has engaged in lots of complex litigation and deal making with the NRTC and Pegasus to get its rights back. This is a long and complex history. This announcement is a salvo in that ongoing war.

    If you don't live in an NRTC/Pegasus territory, you are lucky and this does not affect you. As to the people that do, 99.9% (IMHO) would welcome the departure of Pegasus.
     
  11. Steve Mehs

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    I figured there would be some news on this today. Before I went to work this morning I was channel surfing and came across channel 205, Important News for Pegasus customers, which I'm not allowed to view. Congratulations to those who live in NRTC areas who will finally be able to take advantage of DirecTV promotions and hopefully have their monthly bills adjusted to reflect normal DirecTV rates.
     
  12. ramcm7

    ramcm7 Legend

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  13. Mark Holtz

    Mark Holtz Day Sleeper DBSTalk Club

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    So much for a 90 day transition window.
     
  14. homeskillet

    homeskillet Icon

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    They filed Chapter 11 to PREVENT the DirecTV/NRTC agreement the article says.... ???
     
  15. Mark Holtz

    Mark Holtz Day Sleeper DBSTalk Club

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    Chapter 11 bankruptcy is simply a reorganizational tool, and allows companies to restructure their debt, etc. Chapter 7 is "we're closing out doors and leaving Dodge"
     
  16. gor88

    gor88 Icon

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    Pegasus wants to protect their customers...hah! That's the best laugh I've had all week! :)

    The bankruptcy judge should tell Pegasus to pound sand! :D
     
  17. Jacob S

    Jacob S Hall Of Fame

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    This can only help DirecTv and hurt Dish since Pegasus customers will see a drop in rates, better promotions, and more competition in those areas against Dish. This will cause some to stray from Dish to DirecTv, but I dont see it causing DirecTv/Pegasus subscribers straying to Dish.

    Does the sub count Pegasus has go towards DirecTv sub count?
     
  18. Mike123abc

    Mike123abc Hall Of Fame/Supporter DBSTalk Gold Club

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    It is a way to get a quick court ruling/injunction to prevent the termination of the exclusive deal with DIRECTV. If they went the other way with filing suit it could be in court for years and DIRECTV could be selling right out from under them the entire time and they would essentially fail. Now it will be up to the judge, the judge could actually rule that the best deal is to take the DIRECTV settlement offer and foil their plans anyways.
     
  19. gor88

    gor88 Icon

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    Let's hope the judge forces Pegasus to take the settlement offer! :)
     
  20. junki

    junki Godfather

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    OK, I understand everyone really does not like Peg-Sat. The one thing that everyone forgets to look at are the businesses like myself that are going to suffer. Over 75% of my work come from the NRTC areas. I enjoy the crap equipment the Peg-Sat gives customers. Also Peg-Sat unlike D* and E* do not charge back the retailer for customers not paying their bill and disconnecting service.
    This is nice for some but really bad for others. Money is tight and now will be tighter. Small buisness can not survive.
     
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