dishstandsbyyou gives you a great credit for fox dispute

[PortlandChris]

Here it is: each subscriber cancellation costs Dish $861. That is a lot of money any way you slice it. 90,000 times $861 = ??


Pay?TV Subscriber Acquisition Cost (Pay?TV SAC) was $861
during 3Q14 compared to $842 during 3Q13, an increase
of $19 or 2.3%. This change was primarily attributable to
an increase in advertising costs, partially offset by a
decrease in hardware costs per activation. The increase in
advertising costs resulted from additional brand
advertising to increase awareness of our college football
programming.

In your post you stated "subscriber cancellation costs." In the quote you posted it refers to "Pay-TV Subscriber Acquisition Cost"

You are not even talking the same thing. Do you even read what you post?

Cancellation cost is really the employee time and the postage to mail receivers. Acquisition cost is the cost to acquire a NEW customer. That is advertising, order takers, installation costs, and equipment. But if equipment is recycled then its not much of cost, except additional employee time for refurbishing the receiver.

It also is NOT 90,000 customers by 12-31-2014. If any one of you reviewed at how Fox bozo Tim Carry stated this: On the website they set up to complain about the issue they considered any time anyone had an open browser for 4-5 minutes or more to be someone cancelling. Really? Seriously? This is an absolute ridiculous way of measuring potential cancellations. I leave my webpages on all the time, and probably did on the silly Fox site as well....so under Tim Carry's theory, I am a cancellation.

The real issue is Fox's backhanded attempt at tying the Fox News renewal to a price increase on FS1 and FXX, despite Dish having unexpired contracts on FS1 and FXX, that do not expire for some time. This is the issue....it does not take a genius to see this, but for many posters here, they don't want to see the obvious.

The real risk (besides the Fox News Channel not returning soon) is what may happen when other Fox channels come up for renewal. Does anyone know if anything else is up for renewal soon? (FS2, Big 10 Network, broadcast Fox channels, FSNs, etc.).

This is NOT going to resolve itself in the short term unless Fox backs down. Charlie Ergen is not going to back down. Dish's stock price is fine and the financials are fine. Many of the Fox News viewers are coming from the low fee entry packages, where Dish does not make too much money on, so their total value to the bottom line is marginal in the first place.

Many viewers are tied to Dish with contracts. They can't leave without significant penalties. Others will not leave because of the hassle factor. People will leave for: (1) sports channels, and (2) broadcast locals. Beyond that the folks who leave providers because of these disputes is minimal, at best. Fox has a following and this may test some, but in the end few will leave. It sure as heck is not 90,000.

 

[mitchflorida]

The notion that Dish makes $5 a month from each of its customers is ridiculous. They might make $50 a month from one customer and lost $40 a month from someone who never pays their bill. Are they losing the dead beat customers or is Dish losing the really profitable customers? Doubt if many people who watch Fox are deadbeats, mainly older people who pay the bill regularly. As has been said, Dish has high overhead and fixed costs, that is why they can't afford to lose customers. Wall Street doesn't like that at all, that is why it is important in the quarterly reports.

 

[PortlandChris]

And after three weeks that is probably true, but what happens if this goes on for a while? Most people will not jump ship right away, but will wait and hope to see it settled. What happens next month and the next when there is no $50 and people have watched all the CNN they can stand? This is bad for both companies and we will see who blinks first.

Some will leave at some point, no doubt. Consider many of the Fox News loyalists are in the low entry level packages where Dish makes less than the $4.70 per sub. Dish makes more money on subscribers at the top end - that is those that subscribe the the maximum channels, buy the pay per view movies, and so forth. Dish makes less on the entry level packages. Dish also makes money on the equipment rentals.

Many are tied to various intervals in their contract. They are not leaving any time soon.

Many are not leaving due to the hassle factor. Yes, there is a hassle factor.

The grass is not always greener somewhere else. Keep that in mind. Cable charges more than Dish. Directv charges more than Dish. Those with competing providers, like those in S Cal with Time Warner Cable and ATT UVerse competing will pay less.

Fox has more to lose here than Dish does. Lower ratings hurt ad costs for a long time.

 

[dwarren2]

You know why the grass is greener on the other side of the fence? It's because your looking sideways and can't see all the bare spots!
Same thing applies to Dish and Direct.

 

[TNGTony]

In your post you stated "subscriber cancellation costs." In the quote you posted it refers to "Pay-TV Subscriber Acquisition Cost"

You are not even talking the same thing.

Though an accountant would lose his brain with the thinking, I understand what he is saying. His point, as I understand it, is when Dish loses a customer they have to replace that customer with another customer in order to keep the same monthly revenue stream. So if Dish has certain acquisition costs to keep the same number of customers, he is adding the the cost of acquisition to the loss of a customer even though they are two different actuarial items on a spread sheet.

 

[empiretc]

Fox and CNN are in the same pack. That must mean all these repeated, unproven claims about fox viewers are true for CNN viewers as well. Correct? Why wasn't it brought up during the CNN dispute?

Dish will lose some sub's as too much has happened in a short amount of time. The numbers will be interesting to see - when available.

It would also be interesting to see how much money dish had to dish out (lol) because of this. WAD, many jumped on this whether they care for fox or not.

 

[PortlandChris]

Though an accountant would lose his brain with the thinking, I understand what he is saying. His point, as I understand it, is when Dish loses a customer they have to replace that customer with another customer in order to keep the same monthly revenue stream. So if Dish has certain acquisition costs to keep the same number of customers, he is adding the the cost of acquisition to the loss of a customer even though they are two different actuarial items on a spread sheet.

Well, maybe but not really. The biggest factor is the advertising cost. That is merely allocated across whatever number of subscribers they add. Add more advertising does not necessary add more viewers. Targeted advertising.

The whole thing in business is finding the right product niche (i.e. channels placed in the right package, equipment options) and keeping your costs on those channels down. You make a profit. The sweet spot on the bill is probably $75 or less. For every $1 you add you lose a certain ## of customers. How many do you lose before it impacts the bottom line. So if the bill goes over $100 you will lose X more people. Is the trade off paying more for FS1 or is it pulling Fox News? Where is the sweet spot?

 

[Mark609]

Got the 1 month credit and the "3 Valuable Gifts for loyal customers" beginning Jan. 15 or Feb. 6 but still no Fox.

4 more days and counting......

 

[ChadT41]

Don't forget to use your PPV certificates before canceling. You can take those after cancellation either.

 

[Tampa8]

Fox and CNN are in the same pack. That must mean all these repeated, unproven claims about fox viewers are true for CNN viewers as well. Correct? Why wasn't it brought up during the CNN dispute?

Dish will lose some sub's as too much has happened in a short amount of time. The numbers will be interesting to see - when available.

It would also be interesting to see how much money dish had to dish out (lol) because of this. WAD, many jumped on this whether they care for fox or not.

What do you mean in the same Pack, you mean in the same package such as Top120? If so, they aren't Fox is not in the Top120 or Top120+ CNN is. Fox has FAR more viewers no matter how you dice it or slice it but this dispute has nothing to do with Fox News other than it isn't on DISH at the moment so it's all academic. DISH has acknowledged it is one of the most watched channels and would pay about what is being asked, so it isn't anything like CNN.

 

[MikeD-C05]

If the major sticking point is indeed increased fees for channels already under contract (FS1), and Dish already agreed to Fox's asking price for FNC and FBN, then this particular outage truly is the fault of Fox. And, I'm shocked...SHOCKED that Fox is reporting this less than accurately.

 

[empiretc]

What do you mean in the same Pack, you mean in the same package such as Top120? If so, they aren't Fox is not in the Top120 or Top120+ CNN is. Fox has FAR more viewers no matter how you dice it or slice it but this dispute has nothing to do with Fox News other than it isn't on DISH at the moment so it's all academic. DISH has acknowledged it is one of the most watched channels and would pay about what is being asked, so it isn't anything like CNN.

FNC is most definitely on at120 with CNN. That is why it is strange to hear some proclaim fox viewers are only in the lowest entry packages, don't purchase ppv, and aren't real money makers, etc....

Didn't happen in the CNN thread and really just goes to show....

 

[ChadT41]

This is a simple one to Solve. @Scherrman, need you to check something out. If you happen to have a channelcard from, lets say a year ago, what package does FNC or FBN fall under on that card? Can't check Dish anymore, as it has been updated.

 

[Scherrman]

This is a simple one to Solve. @Scherrman, need you to check something out. If you happen to have a channelcard from, lets say a year ago, what package does FNC or FBN fall under on that card? Can't check Dish anymore, as it has been updated.

I'll try and check it out tomorrow at work if I can remember.

 

[ChadT41]

I'll try and check it out tomorrow at work if I can remember.

TY Sir. You are a scholar..and a gentleman.

 

[empiretc]

This is a simple one to Solve.

Because people do not know what they subscribe to?

FNC is on 120. FNB got moved around.

Either way, there has been a lot of drama with dish as of late, and it will have some repercussions.

 

[ChadT41]

Because people do not know what they subscribe to?

FNC is on 120. FNB got moved around.

One easy way to tell that you are wrong...FNC is not in any Dish package currently, and IIRC it was AT200 before Fox pulled their channel rights from Dish. We will know for sure tomorrow, unless someone has a copy of an old Channel card they can scan in tonight. It is really going to be the only way to know for sure. I cannot tell you for sure, I have had the AT250 as a minimum the whole time I have had Dish.

 

[empiretc]

One easy way to tell that you are wrong...FNC is not in any Dish package currently, and IIRC it was AT200 before Fox pulled their channel rights from Dish.

You are correct it is not there now, lol, but you are not recalling correctly. Do not confuse FNC with FNB.

FNC is also on the smart pack.

 

[ChadT41]

http://www.mydish.com/filestream.ashx?ID=3976&inline=true

Empire is correct. It was AT120. as of 11/12/14

 

[ChadT41]

I will own up when I am incorrect. I wanted to check it out, so after further research,you were right about it. I give you credit where credit is due. Like I said, I have always had AT250 or higher, so I never payed detailed attention to what was in each package. I just had it. Hell, for the last 2 years or longer, I have had AEP.