Charlie Lied: Read The Latest

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Mar 5, 2004
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Charlie Lied : Read The Latest

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EXCERPT:
Speaking at a conference in Washington, DC, EchoStar CEO Charlie Ergen described Viacom's position as "extortion at the highest level." Ergen claimed that Viacom was asking for a 40% hike in its rates, but Viacom officials insisted that the rate increase being sought was only 7%, a rate acknowledged by EchoStar attorneys in San Francisco courtroom proceedings. People close to the negotiations now say that Viacom has reduced its demanded fee increase to 5% annually.


HIS OWN LAWYERS EVEN CONFIRMED THE RATE INCREASE REQUEST WAS 7%. NOW VIACOM HAS DROPPED IT TO 5%. SOUNDS LIKE VIACOM IS TRYING TO WORK WITH CHARLIE BUT HE IS BEING DIFFICULT. CAUGHT IN A LIE AND YOU PEOPLE STILL TAKE HIS SIDE AND BELIVE EVERYTHING HE SAYS IS TRUE. WAKE UP.
HERES THE LINK:http://www.guidetohometheater.com/news/030804echostar
 
7% rate hike a year is 40% in 5 years. Rates scheduled to go up every year add up really quick. 5% is 26% over 5 years. With inflation running less than 3% a year this represents real rate hikes.

Plus the cost of a new channel.

He probably would have signed a 2-3% annual increase without problem. When you try to get 2-3x times the rate of inflation is when he gets upset. Plus you notice they were offering him 7% and trying to strongarm him into it when they were offering others 5%.
 
Besides, a 2% difference could mean tens of millions of dollars.. which could mean a few dollars a month to us.
 
Dish (DIRECTV Cable et al) have contracts with rate increases usually built right in. They are automatic, so Dish has to raise prices every now and then to keep up with the automatic cost increases.
 
What do I look like, an accountant? All I'm saying is by arguing the price down, he just saved ANOTHER increase, which I'm sure would have been griped about some more with "greedy charlie who's the pig now" comments.

Everyone gripes about the increase.. tell you what, here, cable goes for over 2x Dish for the same channels, and Disney is premium. I'm quite happy to pay $40 instead of $85.. and if he raises it $2 a year, it still gives him 20 years to catch up, provided cable doesn't raise theirs.

I hope everyone here who's complained about the increase hasn't wasted a bleepin nickel their whole life. To complain so loud, constantly, about a buck or two, you'd have to really be on a tight budget, and if your budget's that tight, you should be shutting off the TV and working a part time job to make it breathe a little easier.

Some people think everything should be free and easy.
 
I believe what Charlie has done when saying 40% was that he was stating it was over a longer period of time plus the extra channels Viacom wanted to add therefore an additional charge in which stating that it is 40% within the next 5 years shows how it adds up over the long run.

This is different than charging more than inflation for just one year, this is for multiple years. Perhaps this rate increase would mean another $1 increase per year in addition to other rate increases every year for the next 5 years. This would mean a $3 increase instead of $2 or a $4 increase instead of $3, or some years, an increase of $1 where there would have been none otherwise. It just adds to the amount of the increase per year.

Now just imagine if Dish had a provider that wanted to do this every year or two, another $1 to add to what was state above. This is what happens when rates go up beyond the rate of inflation.

Maybe this is why DirecTv done away with their cheapest package. This could lead to Dish doing the same thing, perhaps no more AT60 in the future.
 
I, like everyone else doesn't like to see rates for services I pay for to increase. But it's a bit strange that folks are willing to shell out $1K for a 921, plus a $4.95/month PVR fee, but make a big stink when your monthly service might go up $1 or $2 a month.

I also don't trust a word that Charlie's said about any $ amount a provider wants to charge. I remember a couple of chats ago, Charlie threw up some 'graphs' to show how Turner wanted to raise rates. There were no indications of what the X and Y axis's were just some lines, which don't mean a thing without knowing what they represent.

Anyway, we're all going to have to cancel our DBS and cable service due to not enough money left to pay for it after paying to fill the tanks of our cars the way the price of gas has been going up.
 
rad said:
I, like everyone else doesn't like to see rates for services I pay for to increase. But it's a bit strange that folks are willing to shell out $1K for a 921, plus a $4.95/month PVR fee, but make a big stink when your monthly service might go up $1 or $2 a month.
Click to expand...
People who have a 921 and a couple of PVRs don't complain when their rates go up $1. But when Viacom raises their rates a dollar or two, and Disney & Co raise their rates a dollar or two , and Fox raises their rates a dollar or two, and repeat for all the other media companies, it adds up quickly.

For someone who pays close to $80/month for AEP, a $1 increase isn't a huge deal. For someone who pays $25 a month for AT60, a $1 increase is more significant. <insert quote about straw and camel's back>
 
rad said:
Anyway, we're all going to have to cancel our DBS and cable service due to not enough money left to pay for it after paying to fill the tanks of our cars the way the price of gas has been going up.
Click to expand...

...for those of us who still have the money to buy gas, whose jobs haven't gone to India or China.

No wonder there are so many International channels on Dish. THEY have jobs.
 
Here's what it sounds like to me - Echostar and Viacom had originally been negotiating over a 5% increase and then Viacom demanded 7% (this would be a 40% increase over the 5%) I don't think they're talking about a 40% net increase, but a 40% increase relative to the original negotiations. I'm no math genius, but this scenario makes sense to me...
 
Even if a 40% increase, what is it in real money?

$1.00 credit for the loss, Charlie settles and we pay the 40% increase which is 40 cents. If only 5% then we pay 5 cents more.
 
Its the principle of the 5¢. If Charlie knuckles under to Viacom, then who is going to be next in line? HBO, STARZ, TURNER, *insert others here*.

Next year it may be 7% or 9%. Who is to say? Every January do we have to hold our collective breath and pray we don't get hiked to death?

Now if my Dish recievers needed to run on gasoline, I would be really p****ed.

LOL
 
It not just the money. I think there's an inherernt problem with Viacom bundling CBS (a cable FCC requred lifeline channel) with the other Viacom channels.
 
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