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New Directv Prices

Discussion in 'DIRECTV General Discussion' started by A_Bear, Dec 23, 2011.

  1. BattleScott

    BattleScott Hall Of Fame

    Aug 28, 2006
    No need to know that, you just need to see what's happening with the margin growth over the same period to evaluate the overall impact of those increased programming costs on the "bottom line". Since margins are growing over the same periods the costs are increasing, it obviously is not as big of a factor in our ever-increasing rates as they want us to believe.

    Additionally, only a portion of the period-over-period increase in the programming costs is attributable to rate hikes from the providers. In many cases the provider rates are tied to subscriber count (ESPN) so as the subscriber base goes up, the cost goes up accordingly. Since that portion of the cost growth is already being offset by the additonal revenue growth of those same subscribers, only a portion of that 10% year-over-year cost increase should be considered applicable to the need to raise subscriber rates.
  2. BattleScott

    BattleScott Hall Of Fame

    Aug 28, 2006
    Glad you are doing well enough that you don't need to consider such things. But there are a great many who's household budgets are stretched to the maximum and the $5 might mean the difference between keeping the service or dropping it (at least scaling back anyways). Maybe you could just send them some pictures of all your extra money to make them feel even worse...
  3. hdtvfan0001

    hdtvfan0001 Well-Known Member

    Jul 28, 2004
    Me thinks you may have over-looked the real point.

    Yes - its real money
    Yes - the impact varies by customer
    Yes - this occurs with almost all providers annually
    Yes - there are choices

    On the last point (my main point done in humor), you can adjust other items to compensate for the increase, reduce services to adjust the costs per bill, consider alternative providers, etc.

    Every time...every year...that prices go up....this same dialog comes up - and not just for DirecTV. There is littel doubt no one likes paying more money for something...especially something they use or are accustomed to use.

    That said - there are choices.
  4. Satelliteracer

    Satelliteracer Hall Of Fame

    Dec 6, 2006
    I took a cab to work yesterday from the airport as I couldn't do long term parking. The 3.1 miles 7 minute trip cost me $19 plus a tip. There was a minimum charge of $19 and I got hit with it. I began to think, that $19 for 7 minutes would buy the average DIRECTV customer about 7 days of 24 hour coverage and more than 170 channels. My point is that much of it is in expectations or what you are comparing it to.

    My friends easily have cell phone bills north of $120 a month. For that, they can call people, get their email, etc. For far less than that, they can be entertained 24/7 in all the TV's in their home. For some people, the cell phone is their world and that amount is not a big deal. For others, spending $85 a month on television is important to them and they will continue to do it because the value is there for them. In both examples, not everyone agrees.

    It all comes down to value, what you expect to receive, what the tradeoffs are in their individual lives. The average customer at DIRECTV pays less than $3.00 per day for a wide selection of news, sports, movies, entertainment, etc. Less than $3.00 per day. That's less than a gallon of gasoline. That's less than a Starbucks coffee (which, by the way they announced an increase last week as well), etc, etc.

    It's about what people value, what perspective they put on things (how important it is), etc. The answer won't be the same for everyone, nor should it be. People value things differently across the board and one person's $80 television bill is outrageous to some but underpriced for others. One person's $40 broadband is too high for some but fine for others. Etc, etc.
  5. Satelliteracer

    Satelliteracer Hall Of Fame

    Dec 6, 2006
    Did you get anything in additional value for that money spent? I don't know the answer, I'm just asking.

    I would offer that in the past 6 years D* has added over
    • 170 HD channels that didn't exist 6 years ago.
    • Whole home sharing
    • Better equipment (faster, more storage capacity, new UI, etc).
    • Things like viewing on your iPad, DVR scheduler apps, free programming add-ons (golf mixes, tennis mixes, NASCAR, etc).
    • 3D Television channels launched
    • YouTube integration....Pandora coming very soon
    • HBO Go \ Max Go
    • More call centers launched so wait times are reduced
    • New channel launches
    • DIRECTV Everywhere
    • Tons of new local markets launched in the past 6 years
    • Etc, etc

    Some of those may apply to you, some may not. This is where I believe this industry is a little different. When Starbucks raised the price of my coffee two weeks ago was I getting a better coffee? More coffee? Nope. When my electricity rates went up, was I getting better electricity? More efficient electricity? When gas goes up...you get the idea.

    No company likes to raise prices because of the fear of alienating customers. In my world, at least, I've found that this industry by and large at least tries to innovate and provide some additional value along with those price increases. First and foremost the price increase is there to offset increased expenses, mostly in the form of programming costs but that hasn't stopped many television distributors from trying to deliver a better experience and better product along the way. Just my opinion, albeit a bias one.
  6. Davenlr

    Davenlr Geek til I die

    Sep 16, 2006
    If you guys would quit giving away the store to new customers, and be a little innovative with your current customers (like allowing them to buy an HR24 online, order an HR34, etc) instead of getting whatever is shipped out, you could charge a nice price and make some money. How about a current customer only deal....New HR24 with 2TB internal hard drive). Bet lots of people would buy that. HR34 with 2TB upgrade? But nope, we have to order from a retailer and totally bypass DirecTv to get what we want. But new customers get just about anything free, and a package price cut to boot. Current customers with money ready to spend, get nothing.

    Red Zone....wont sell it...but give it away to those that complain? That doesnt make a bit of sense.

    Lots of ways to make money to offset those pesky price increases from the programmers, instead of raising rates.
  7. mreposter

    mreposter Hall Of Fame

    Jul 29, 2006
    Most of the people that I know that have $120+ cell phone bills spend more time on their cell phones than they do watching tv. They're talking, texting, surfing the web and running apps constantly.

    And hey, that cell phone service isn't only available 24/7, it's also available just about everywhere you go. Those 170+ Directv channels still aren't available as an everywhere service.

    Yeah, every product and service has a value that is unique to the individual. Some people prefer 99 cent cheese burgers from McDonalds, some people prefer to spend 8 bucks at Chilis.
  8. Davenlr

    Davenlr Geek til I die

    Sep 16, 2006
    Never understood why someone would pay $120+ a month for a cell phone when Straight Talk is $50 a month for unlimited everything. Just to get the Iphone I guess.
  9. mavs-fan

    mavs-fan Mentor

    Aug 31, 2011
    Yeah, we have Boost mobile and pay $35 a month for unlimited phone, text and web. Their prices actually decrease every 6 months you are a customer. If only other services would reward customers with discounts for their loyalty.
  10. ffemtreed

    ffemtreed Icon

    Jan 30, 2008

    Very few of that actually applies to me, I kept the 3 dollars I pay for whole home DVR out of my monthly cost equation (which I believe should be included in premier anyways). I have had the same equipment since I gave up my old HD tivo. I have been waiting all these years for a new tivo only to find out it is a stripped down piece of junk and not a leading edge receiver, that for another thread though.

    A lot of the recent development has to do with mobile devices, I seriously have no interest in viewing content on my mobile device. The sound sucks and it totally kills my battery.

    I guess on your list I should just say what I do use in that 3 years.
    The limited amount of 3D programming
    Some of the new HD channels I watch
    I think I used youtube once or twice
    The new HD GUI is nice, bit I would pay extra for it if I had a choice.

    I just really think my needs and the direction of the company are going in different directions and when looking at the costs it made me realize it.

    I am giving it till the end of the NHL season hoping to see some more 3D content /basic HD and some announcement some kind of upgrade path to a HR24 and 34 for existing customers. If not, then i am going to stick to my plan of netflix, ROKU and PS3 at least for the summer while my account is suspended.

    since I am ranting, another thing that turns me off is how confusing all these packages are and how constantly they change. Quit trying to confuse everyone with all these legacy packages, grandfathered packages and etc. Come up with something simple like starter, bronze, silver and gold and keep them the same every year and just adjust the prices.
  11. Shades228

    Shades228 DaBears

    Mar 18, 2008

    There is an upgrade path for existing customers to order an HR34 staring on 2/9/12.

    They're actually simplifying the plans. DIRECTV has only renamed advertised plans 3 times that I can remember. I can see plans starting to change more now though with how negotiations are going with channels. In order to keep costs down channels will have to be moved around.
  12. JoeTheDragon

    JoeTheDragon Hall Of Fame

    Jul 21, 2008
    Will the NBC sports channel move as part a new deal with nbc / comcast both to maybe choice and to the 200's range.
  13. BattleScott

    BattleScott Hall Of Fame

    Aug 28, 2006
    If that was your point, you have a very strange way of wording things. Your post CLEARLY reads as a snarky comment accusing people of over-racting to what is a "negligible" amount of money to you.
  14. hdtvfan0001

    hdtvfan0001 Well-Known Member

    Jul 28, 2004
    Apparently humor is not easy to comprehend for some people. The first post was clearly a joke to 99% of folks. In fact...other posters followed in suit with humor...

    If the post you just quoted isn't clear, then perhaps many other things wouldn't be either - like the fact that annual rate increases have been happening for more than 16 years. Nothing new.

    Battlescott - only you and one other poster found it strange...get over it. How making choices based on higher prices for ANYTHING is considered "strange" is a mystery.

    P.S. As for unclear or strange wording....snarky is a "strange" word...and subjective in your usage.

    So you and I have expressed our views...lets move on and let others convey their take on the topic of DirecTV price increases...
  15. zimm7778

    zimm7778 Hall Of Fame

    Nov 11, 2007
    What is Directv Everywhere? I know you can't be calling watching the iPad everywhere because it doesn't work outside my house.
  16. Drew2k

    Drew2k New Member

    Aug 16, 2006
    We don't have much info beyond what was announced in some recent DIRECTV earning calls and a one line item in a recent email from DIRECTV, but it would seem to be a way for DIRECTV customers to watch DIRECTV programming from "anywhere", much like the "TV Anywhere" initiatives by a lot of cable companies. HBO and Cinemax already have something like this, where through their web sites and custom apps a customer can input their DIRECTV account info and watch HBO and Cinemax programming. My guess is DIRECTV will be expanding the programming so that if your pacakge allows you to watch it on your TV with your DIRECTV receiver, you may be allowed to watch it "remotely", on a tablet, PC, phone, etc. We just don't know any concrete details or timelines...
  17. BattleScott

    BattleScott Hall Of Fame

    Aug 28, 2006
    The post in question is not the one quoted, but nice try. It is the first post above that was the objectionable post, so stop trying to blend them together and gloss over it. Additionally, I don't really see any posts following yours that "follow suit" in any way.

    Though you might find "snarky" a stange word, it has a clearly defined meaning.
    1: crotchety, snappish
    2: sarcastic, impertinent, or irreverent in tone or manner

    So it is unmistakable in both it's meaning and MY usage. Your original post, hdtvfan0001, WAS snarky in both it's presentation and it's intent.
  18. Mike Bertelson

    Mike Bertelson 6EQUJ5 WOW! Staff Member Super Moderator DBSTalk Club

    Jan 24, 2007
    Stop discussing each other...either drop it or take it to PM.

    From here on discuss the topic and not each other.


  19. hdtvfan0001

    hdtvfan0001 Well-Known Member

    Jul 28, 2004
    I'm sure most folks would agree that price increases are not welcome, yet a reality in most products and services.

    Then again, DirecTV and Dish have done annual price increases for years.

    Certainly at some point, on an individual bases, the value-vs-cost impact gets re-assessed whenever prices change. That's not exclusive to just Sat TV service.
  20. mdavej

    mdavej Hall Of Fame

    Jan 30, 2007
    Dish didn't increase prices this year.

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