But those aren't deployment (or customer acquisition) costs. Those are OPEX these days. OPEX is how you make spending more money look good to Wall Street.
AT&T is Raising The Price of DIRECTV $10 a Month For New Subscribers Effective Today
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But those aren't deployment (or customer acquisition) costs. Those are OPEX these days. OPEX is how you make spending more money look good to Wall Street.
With satellite you need to put a dish up..run coax....iptv..mail somebody a box
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Correct. And that means that customer acquisition costs are dramatically reduced. And a reasonable result of that is the iptv solution should be a fair bit cheaper than satellite to the consumer. Yet it really isn’t. This solution just fattens AT&T’s bank account with no real benefit to the consumer that I see.
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It isn't really completely gone, but the size of the discount for new customers is very small compared to the standard pricing. There is still discounted pricing for new customers on equipment as far as I can tell. This changed sometime in the past two years since I signed up. My discount on the AT200 is ~$18 compared to ~$3 for a new customer signing up today.
The current New Customer discount for a 4 room Hopper/Joey system with the AT200 is $31 mo. $15 off the AT200, $5 off the Hopper fee, $2 off ea. Joey fee and $5 "Autopay" discount.
These rates are locked in for 24 mos. shielding the customer from the $5.00 Spring price increase as well.
Hmmm...I was primarily looking at the package rates.
The new customer price for the AT200 is listed as $79.99 at www.dish.com/programming/channels/
On my bill it says. "America's Top 200 (Reg $82.99) 64.99"
Based on that, the current programming discount on the AT200 is $3, while it used to be $15 in 2017, when I signed up.
I also get a $5 autopay and the equipment discounts you list, BTW.
The problem was the promo pricing vs the non promo pricing was too big.
Last time I checked, Choice was $45/mo and went to $112 in year 2.
You add the free movie channels for 3 months free, and you have s customer paying $45 for 2 month, then they get the sticker shock when the movie channels bill at $50. Now the bill is $95
Then assuming they keep the movie channels the bill is $162 after 1 year.
Too much of an increase going to promo vs non promo pricing.
Comcast, and Spectrum charge $60 for a basic Tv package before taxes. This will put it in line with that.
It’s going to cost them some new customers initially and hurt sales.
However with NFL around the corner, their sales pick up anyways and people who want Sunday Ticket are not going to not sign up by the new PRIcing.
Welcome to the new AT&T
Last time I checked, Choice was $45/mo and went to $112 in year 2.
You add the free movie channels for 3 months free, and you have s customer paying $45 for 2 month, then they get the sticker shock when the movie channels bill at $50. Now the bill is $95
Then assuming they keep the movie channels the bill is $162 after 1 year.
Too much of an increase going to promo vs non promo pricing.
Comcast, and Spectrum charge $60 for a basic Tv package before taxes. This will put it in line with that.
It’s going to cost them some new customers initially and hurt sales.
However with NFL around the corner, their sales pick up anyways and people who want Sunday Ticket are not going to not sign up by the new PRIcing.
Welcome to the new AT&T
I agree..1000%.. but their focus is strictly on profit
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thier focus is to get rid of customers who always ask for a credit
as stated by the ceo
those customers may cost them money
Those are only the initial install costs. AT&T TV doesn't cost less to deliver on an ongoing basis than Directv satellite. Since they don't need to launch any more satellites unless they plan to keep Directv around into the 2030s AT&T TV will be MORE expensive for them to operate on an ongoing basis, though the percentage difference would be small since most of the cost is in content which is the same for either one.
Anyway, the cost of satellite and AT&T TV are not the same. The package pricing may be the same but AT&T TV doesn't have the $15/month advanced receiver fee, nor is there a $7 per TV fee. Yeah you gotta buy the client, but at $7/month you break even in less than 18 months (out of a 24 month commitment) and the client is yours to keep and resell. So over a 24 month commitment with three TVs you'd rack up $696 in fees for Directv satellite versus $240 for buying the two additional clients for AT&T TV. That's over $20 a month less after taxes.
That $456 difference over 24 months is probably about equal to Directv's install cost (installer visit to put up dish, running cable, etc. plus providing hardware that depreciates over 5 years) so they should be roughly equally profitable for AT&T. Which I assume was the whole point - provide an alternative delivery method for Directv for customers who can't/won't put up a satellite but price it so AT&T doesn't have to care which option you choose.
That’s certainly the issue. How to retain enough subscribers that are willing to pay the retail rate and not some discounted price. No small task these days for cable/sat as streaming gains ground.
Cable is in a better position as they have both TV and internet and we’re seeing more cable companies not even discussing discounting TV service to keep a TV customer since internet services are more profitable.
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not everyone has access to cable or streaming, and data caps are becoming a thing
many of us that do not, have had both dish and directv at one time. we just pick the one that best suits us
But you’re part of the smaller end of the market where satellite TV is the only realistic way to get TV. For info, I’m one who really hasn’t rung the death knell of satellite or cable for TV. I think that as the various streaming services raise their prices to become profitable that they will not be very competitive with cable/sat. The sooner they do raise their prices the sooner that will become obvious.
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and that is why companies are in business. and publicly traded companies more so, stockholders and all
