Direct tv equipment issues

[dogger01]

I just have a little problem. I have been a DTV customer for about 6 years and I keep up with all the new equipment. I want to know why subscribers have to pay a $4 or $5 box fee a month. I bought the box and I am not renting it from them. I understand why cable does it but why do we have too?If I dished out $300 for a HD box then I have to pay the fee a month. That is just wrong.

Also if I want to upgrade my older box to a newer one why do I have to sign up for a year agreement? I just bought the box. DTV did not give it to me. We never had to do this 2 years ago. I currently want to get the HD DVR but I just bought the Hughes HD box back in February and had to sign up for a year contract and if I buy the new box I will have to sign up again for a year again starting when I activate my box. It is so stupid.

Don't get me wrong I like DTV and I plan on sticking with them but to charge us feesand make us sign agreements is just plain aggravating.

 

[tward_biteme1]

You only pay $5.00 a month for any receivers on the account after the 1st receiver. I have three receivers so I get charged $10.00 more a month...

You don't get charged for your 1st receiver.

 

[PSB]

I think that will all change when the new DirecTV systems become the norm, then we really will be on a level playing field with cable!

 

[boba]

The other answer is because they can. Actually you aren't paying the real cost of the satellite receivers. Directv buys down the cost of the receivers in the area of $125 so that receiver you pay $50 for really costs $175 by requiring a 1 year contract they are making an attempt to get you to stay long enough to recover the costs.

 

[Greg Bimson]

DirecTV has to pay a monthly cost to NDS for the access card. Top that with the fact that almost all receivers are subsidized, and that is how DirecTV recoups the losses on the original transaction.

 

[ramcm7]

I just have a little problem. I have been a DTV customer for about 6 years and I keep up with all the new equipment. I want to know why subscribers have to pay a $4 or $5 box fee a month. I bought the box and I am not renting it from them. I understand why cable does it but why do we have too?If I dished out $300 for a HD box then I have to pay the fee a month. That is just wrong.

Also if I want to upgrade my older box to a newer one why do I have to sign up for a year agreement? I just bought the box. DTV did not give it to me. We never had to do this 2 years ago. I currently want to get the HD DVR but I just bought the Hughes HD box back in February and had to sign up for a year contract and if I buy the new box I will have to sign up again for a year again starting when I activate my box. It is so stupid.

Don't get me wrong I like DTV and I plan on sticking with them but to charge us feesand make us sign agreements is just plain aggravating.

Some perspective dogger: When DirecTV first came out, if you wanted multiple receivers you had to have separate accounts, paying full ticket on each! (I originally ran a line to my bedroom, but with only one tuner box, you could not watch different programming on the two TV's.) This was also policy in at least one cable company to which I subscribed, prior to some cable reform legislation.

It will be interesting to see how the home media server setups will change this billing practice.

 

[dogger01]

Thanks for everyone's respones. There is some good info there. I still do not think that all receivers are subsidized by DTV. If I go to circuit city and buy a $300 receiver, I do not think it cost DTV more. It probably only cost $50 to make and they charge the consumer $300. This is how manufacturing works.

I do understand that DTV takes the hit on the free multi-room deals they offer to new subscribers and maybe some upgrades deals to current subscribers but if I do go to a store and buy a HD receiver or a HD Tivo DTV is not taking a loss. Good example is the new HD Tivo. There is no way that the receiver cost a $1000 to make.

 

[boba]

Thanks for everyone's respones. There is some good info there. I still do not think that all receivers are subsidized by DTV. If I go to circuit city and buy a $300 receiver, I do not think it cost DTV more. It probably only cost $50 to make and they charge the consumer $300. This is how manufacturing works.

I do understand that DTV takes the hit on the free multi-room deals they offer to new subscribers and maybe some upgrades deals to current subscribers but if I do go to a store and buy a HD receiver or a HD Tivo DTV is not taking a loss. Good example is the new HD Tivo. There is no way that the receiver cost a $1000 to make.

Believe anything you want but any dealer will tell you Directv subsidizes all basic receivers, TiVos and HD receivers currently being offered.