Annual Paid Programming Ceased

[truckracer]

I am speculating with channel lineup changes and future price increases, Dish does not want a annual customer getting by for xx amount of months not paying for increases that the monthly customers would have to pay.

In the C band days not so long ago you got a discount for purchasing a year at a time. I always made sure to have a couple spare receivers laying around in case a box failed.

 

[RoyalB]

I expect the primary reason for the end of the program is the current financial climate.

Dish offered one month free when you paid annually, and that is what I still received when I paid my annual bill in December. That is about a 9 percent savings. Figure in the month-to-month use of the service and you could figure you were making 4.5 percent on your money.

That was a good deal for Dish and the customer when interest rates were higher. When you can't get any more than 1 percent anywhere else, it tilts heavily to the customer. Guess Dish figured it was better to drop it than to offer an insulting 1 percent discount for annual payment.

When I switched to HD in March I was kept on annual payment until I called to shift to monthly so I could get free HD for life. $120 annual savings vs. $50 was a no brainer. They would not allow free HD with the annual payment discount.

It is a shame they are booting people from the program and not honoring the arrangement until people's annual contracts run out. Perhaps they'd rather deal with the complaints at one time than spread them over a year. Wonder what they'd do if a customer pressed them to honor the contract until its expiration.

 

[truckracer]

There may not be high enough percentage of customers that pay annually for it to make any difference. Most people I personally know do not pay anything ahead.

 

[lparsons21]

I suspect that is the primary reason for doing away with it.

But they should have let those that were current in their annual contract just ride until they finished out. I suppose the one month credit was given to give the same effect, and I doubt they could have cancelled and rescinded the annual deal without doing it.

 

[Stargazer]

I would think that most of the annual customers are long-term customers and they probably don't think they would go anywhere.

 

[dare2be]

Paying in advance ahead of a rate increase may be considered a loophole.

Oh my goodness, to say it mildly.

It's a symbiotic relationship. One party gets a guaranteed upfront pre-payment, and the other gets a locked-in price. Both parties are entering into the agreement with their eyes open.

What is a loophole (or bait and switch) is Dish yanking existing annual pre-paid agreements and switching them to monthly with increased rates. Dish still has the upfront money, the customer no longer has the locked-in rate. The least Dish could have done was honor the existing annual accounts until the next renewal, informing them ahead of time before their next annual renewal.

Here's an analogy: It's the same as buying in bulk. You get a cheaper price per unit (month) when you buy more of it at once. It's like buying a year's supply of cereal and then 3 months later being told that the price of the cereal went up and I'm now forced to pay the difference in that price.

 

[dare2be]

I would think that most of the annual customers are long-term customers and they probably don't think they would go anywhere.

If I had been one of those customers, free now to cancel or drop my level of programming and get my money back, I certainly would.

 

[truckracer]

Guess everybody can play the switch back and forth game. Every year or two switch off between pizza dish providers and get the "welcome back" promotions.

 

[jtiner]

Well, I was very disappointed to receive the notice. I've been an annual subscriber since 1996. The wording in the letter was a bit vague to me, so I contacted Dish and was told that the annual "balance" that would be applied to the new monthly charges meant I wouldn't pay anything more until AFTER my subscription expired. From the conversations here, it sounds like the change is immediate in May. I certainly expect Dish to honor the original annual agreement until it expires.

 

[Bobby]

Well, I was very disappointed to receive the notice. I've been an annual subscriber since 1996. The wording in the letter was a bit vague to me, so I contacted Dish and was told that the annual "balance" that would be applied to the new monthly charges meant I wouldn't pay anything more until AFTER my subscription expired. From the conversations here, it sounds like the change is immediate in May. I certainly expect Dish to honor the original annual agreement until it expires.

Well, think about it this way: Dish is canceling Annual. They are going to credit you monthly for what you have already paid, plus, give you a free month. It's pretty cut and dried...

 

[dare2be]

so I contacted Dish and was told that the annual "balance" that would be applied to the new monthly charges meant I wouldn't pay anything more until AFTER my subscription expired.

I read it as you wouldn't pay anything until your annual balance runs out, which even with the extra month credited, because of the increased rates, your money would run out before the 12 months is up. Be sure to sign up for paperless billing and autopay so that you'll save $10/month on the HD fee. That should more than make up for the increased rates.

 

[truckracer]

I don't sub to HD because of the silly HD fee.

 

[dare2be]

I don't sub to HD because of the silly HD fee.

You do know that there is a way to throw out the bath water and still keep the baby?

 

[jtiner]

Well, think about it this way: Dish is canceling Annual. They are going to credit you monthly for what you have already paid, plus, give you a free month. It's pretty cut and dried...

Yes, they're applying what I paid, but I'd expect Dish honor the original agreement. Discontinuing annual contracts should mean that I can't renew again, as opposed to ending the agreement mid stream. I'm sure there's a "we reserve the right to change at any time" clause somewhere, but I would expect they'd be a bit more concerned about keeping a very loyal (and trouble free) customer happy.

 

[Bobby]

Yes, they're applying what I paid, but I'd expect Dish honor the original agreement. Discontinuing annual contracts should mean that I can't renew again, as opposed to ending the agreement mid stream. I'm sure there's a "we reserve the right to change at any time" clause somewhere, but I would expect they'd be a bit more concerned about keeping a very loyal (and trouble free) customer happy.

There is no difference between ending the Annual at the end of the year or doing it the way they are. You'd be upset that you couldn't do it anymore, either way... Actually, they are giving you very advanced notice of the change by doing it this way.

 

[jtiner]

There is no difference between ending the Annual at the end of the year or doing it the way they are. You'd be upset that you couldn't do it anymore, either way... Actually, they are giving you very advanced notice of the change by doing it this way.

If what others have stated here is correct, it sounds like I'll be billed at a new, higher rate in May, before the end of my annual contract (October), as opposed to the contract running it's course and then having new monthly rates apply.

 

[jtiner]

Slightly off topic, but I've searched the forum looking for a pointer to a detailed list of programming related charges and fees, but haven't found anything. The Dish site lists some fees (like on site repairs, shipping fees, etc.) but doesn't seem to have a detailed list of charges. Where's the best place to find that information? I'm thinking specifically of DVR fees, external drive activation, HD, etc., etc., and when those fees are applicable/waived.

 

[Stargazer]

Perhaps the one month credit is not enough since these customers would owe a fee in the amount of the programming increase before the 12 months are up. They should have been locked into the same price for the year that they paid for.

Dish may think that these customers will stay with them anyways since most likely they have been with them for a while but they may be wrong and find that they will look at other options especially if they suddenly have to pay a higher monthly amount.

 

[Bobby]

I pay for my programming on an annual basis and I have just received a letter from DISH as follows:

"April 20, 2013

Dear Valued Customer,

On 5/22 there will be some changes happening to your account. To ensure your full understanding, we
wanted to take the time to describe what those changes will be. You currently pay for some of your DISH
programming once a year.

Beginning 5/22, DISH will no longer offer annual billed services. As a result, you will now be billed
monthly.

Since you already paid for 12 months of service, any unused portion of what you previously paid will
be credited back to your DISH account to be used toward future monthly payments.

For each annual billed programming package you subscribed to, an additional credit of one free
month will be applied to your DISH account. This will ensure you receive the full 12 month benefit
for the annual service that you signed up for."


Has anyone else received such a letter? Why is Dish discontinuing the annual billing?

This seems fair, unfortunately, my annual biling began in January 2013 before the prigramming increases in February 2013, which means that I will now be billed the increased monthly prices.

If what others have stated here is correct, it sounds like I'll be billed at a new, higher rate in May, before the end of my annual contract (October), as opposed to the contract running it's course and then having new monthly rates apply.

The first part is from the original post. The bolded parts tell the story. You will be credited back the unused months to make up the difference, plus you'll get one free month. It's not going to cost you a dime more until October or maybe November because of the free month.....

 

[dare2be]

The first part is from the original post. The bolded parts tell the story. You will be credited back the unused months to make up the difference, plus you'll get one free month. It's not going to cost you a dime more until October or maybe November because of the free month.....

I understand that. The annual payment was for 11 months, so they are crediting the 12th month to make up the difference between an 11-month payment and 12 months of payments.

But, if you made your 11 month payment in January, before the Feb price hikes and now the upcoming May price hikes, then the amount you have credited on your account will not cover the full 12 months at the new rates. Bait and switch.

I feel I probably need to spell out an example:

AT120+ and Sports Pack: annual payment in December for service from Jan2013 - Dec2013: $49.99 x 11 + $9.00 x 11 = $648.89
4 months have already been used (Jan-Apr), so the amount credited back to the account would be 7 months worth: $49.99 x 7 + $9 x 7 = $412.93
+ 12th month credit: $59.99 (current price of AT120+) + $9.00 (current price of sports pack, it hasn't gone up yet) = $481.92

Now, the next 7 months will be billed monthly at a rate of $59.99 + $11 (-$2.00 for May since the SP is still $9 for May) which by December will have incurred invoices totaling $571.93.

Customer will have to make up $90 by the end of the year for which they had prepaid.