partly because most people will avoid paying the cancellation fees by keeping the service?
it does work out to more in fees.
if canceled right at the beginning, either way, it would be $240 in fees
canceled after 1 year, $60 with an 18 month commitment, $120 with the 24
Dish is looking at a certain cost associated with a new customer, it would vary depending on what equipment is needed. This is made up over time by you paying your monthly bill, and the higher the programming you chose, the faster they start making a profit.
It can be assumed that with the current equipment options, getting a 4 TV setup, maxed out on HD and DVR receivers, it may take around the full 18 months of the old contracts for them to break even. 24 month commitment means they have higher profits, even if they have high churn people who cancel at the end of the commitment, and switch companies, repeatedly.