No More 2 Year Contracts

Great. This will cost is all more money.

 

I'll believe it when I see it........

 

Not likely - DirecTV makes a killing on the receivers. If someone pays $200 for an HR24 and keeps it forever they make money. If someone pays $200 for an HR24 and cancels before their 2 year commitment DirecTV makes money and then gets to charge the next poor sap $200 for the same receiver. Bottom line - they make money.

If DirecTV sold you an HR24 for $300-$400 or even $500 and then allowed you to leave when you feel like it they are risking breaking even. They are not in the business of breaking even!

 

I would prefer to keep the 2 year committment and have the lower up-front costs. The cost of switching providers would be just as high because you would have to factor in the up-front cost for the equipment.

If you say you could just re-use your old equipment, then how is that different from putting your account on hold and keeping the equipment, then reactivate that account and put the other account on hold?

With my current telephone account, even though I have a 2 year committment, I can get a new phone at a significantly reduced price every 18 months as long as I sign a new 2 year committment. I have only changed cell phone providers twice going back to the days of analogue cell phones.

 

Directv makes their money on your monthly bill not the cost of the receiver. I've been with DTV for 15 yrs I think my first bill was around $50 for the same service I have now. Ive been paying over $90 for the last 7-8 years. You still pay for the receiver 10 fold over the life of the receiver. Its a never ending cycle.

 

D* allows customers today to buy their receivers with no commitment. That's been around for a number of years. The reason for the 2 year commitment is to recoup the investment it takes to bring a new customer on board, which is a large amount of money. When you consider most new customers come in on 3 or more receivers, plus the installation, etc, etc...that takes a long time to recoup those expenses and thus the commitment requirement.

 

If people cant be bothered to carry through with something for 2 years let them pay the higher rates, not everyone else who has no problem with 2 year commitments.

 

Just got my Directv bill....went up $7.00...package went up....dvr went up...HBO,Starz pkg went up

 

For tv? Not a chance. Especially DirecTV or Dish. It costs a LOT of money to install a new satellite dish, receivers, and wiring, plus support a new customer as they get used to a system. It takes quite a while to make money off of a customer, hence the two year agreement. And as SR said DirecTV does allow customers to pay more and not have a commitment, as does Dish.

This works very well with mobile providers in Europe where they'll do a discounted plan for doing no subsidized phone, or a discounted phone and a higher cost plan, with more discount on the up front phone fees the more you pay.
For cell phones I would gladly pay $40 or $50 less a month if I had to buy my iPhone at full price, and I'm sure many people feel the same way.

 

Where can you Buy them and How much Does HR24 cost?

You can But a Hopper for $350, so if Directv Charges more then that for an HR they are smoking crack!

 

Yet the commitment is also restarted every time a "new" (and I use that term very loosely) piece of equipment is added by an existing customer; long after that investment has been recouped.

 

You can buy receivers directly from D*, been that way for years.

 

Yep, I know all about Buying receivers from Directv, and you still didn't mention how much?

 

Yes, but most customers don't upgrade to new equipment in those first two years.

 

I thought you asked "Where can you buy them"


I don't know the prices, I'll have to check.

 

No chance whatsoever.

The fanciest phones are cost a whole lot less than half the cost of the average satellite setup and the cost of service is a pittance compared to television programming costs. Wireless phone install costs shouldn't be very high. DIRECTV figures that the cost to bring a new subscriber on board (Q4 2012 SAC) is $848.

DIRECTV currently offers Genie takers over $100 a month in signing discounts for the first 12 months. Selling a package that is going to cost upwards of $150 a month is going to be tough.

 

Nonetheless, you can't open an account with purchased receivers nor without a 24 month commitment.

 

I was addressing the stated rationale behind the two year commitment.

Is there a different rationale for the customer incurring two-year equipment when a customer "buys" what often ends up being a used piece of equipment, which has likely already been "sold" at least once to other customers?