Dish Network Confrence Call Recap

What is SAC?

Doug,

SAC is (S)ubscriber (A)quistion (C)ost. Basically it is a tally of all the Hardware and installation costs as well as any promotional rate to acquire a subscriber.

SAC for both DirecTV and Dish generally about $400 dollars. This means it takes about 18 months to 24 months of being a paying subscriber until either Dish Network or DirecTV make any money from that subscriber.

John
 
Doug,

SAC is (S)ubscriber (A)quistion (C)ost. Basically it is a tally of all the Hardware and installation costs as well as any promotional rate to acquire a subscriber.

SAC for both DirecTV and Dish generally about $400 dollars. This means it takes about 18 months to 24 months of being a paying subscriber until either Dish Network or DirecTV make any money from that subscriber.

John

Just peeked at the current 10k filing. SAC for dish is up to $720. :eek:
 
Wow, $30/month over 24 months. That's crazy.

Let's keep thins in mind before we whine about a commitment.

Which I think is why their leased receiver depreciation expenses were up in 08 than in 07, by quite a bit. The cost eats into their balance sheet, yet they still managed to have a 24% increase in net income.

A lot of cost cutting going on elsewhere it must be.
 
Dish Network reusing satellite receivers and lnb's has got to be saving them quite a bit of money. Even if their SAC was $720, their average subscriber pays around $60+ per month so if they made $30 per month it would take two years to break even. I can see how SAC is $720 because of retailer commissions which takes around half and the other half is hardware required to do the installs. Half of the hardware costs are eliminated due to reuse I'd say but they still have some costs involved. Imagine what the SAC would be if they didnt reuse the hardware? It would be closer to $1,000
 
Q.The 9.99 promotion has the phones been ringing?

A. From the big picture, the lost of the att was a big negative as they have lost subscribers but it was a positive as we were able to go and get subscribers that wanted to stay with us. Were going to have to see how things like that balances out in the coming years. We have certainly tightened up our credit standards. In the past we might have taken coustmers with lower credit, today were not doing that.

Strange quote, considering that Dish id the only satellite company to offer a PREPAID TV service with it's Dish NOW!/YA! setup in the USA.

DirecTV has one, but it is used in Puerto Rico, or South/Latin Amercian countries only. Not available to USA customers.
 
Dish Network reusing satellite receivers and lnb's has got to be saving them quite a bit of money. Even if their SAC was $720, their average subscriber pays around $60+ per month so if they made $30 per month it would take two years to break even. I can see how SAC is $720 because of retailer commissions which takes around half and the other half is hardware required to do the installs. Half of the hardware costs are eliminated due to reuse I'd say but they still have some costs involved. Imagine what the SAC would be if they didnt reuse the hardware? It would be closer to $1,000


What about programming costs? The $30 quote only includes hardware costs right? They still have to pay programming costs per subscriber.
 

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